| | | Paid for by Uncle Sam | | | | 
Hey there mom and dad, if you can't afford to send your kid to college, you may not have to worry. While the big banks won't be helping you out, a benevolent relative just might…Good ol' Uncle Sam. We learned last week that starting on October 12, JP Morgan Chase will no longer accept new applications for private student loans. According to the folks at JPM, the private student lending market has declined by 75%, Why? Ever since the financial crisis, more students have been getting their student loans directly from the federal government. In 2010, Congress passed a law cutting out middlemen banks that collected a fee for making student loans backed by the federal government. It's no surprise that the big banks really want no part of lending money to a bunch of 19-year-olds with dim employment prospects if they can't slap on hefty upfront fees. Many parents are loathe to even lend their teenagers the car, let alone $200,000. There is over $1 trillion in outstanding student loans, making it the second largest source of household debt after mortgages. Just 10 years ago, student loans stood at $240 billion. The Consumer Finance Protection Bureau reported that around $8 billion of private student loans were in default. That number is likely to go higher if interest rates rise because most private student loans, unlike federal loans, are variable rate loans linked to Libor or the prime rate. But while the private loans are at a variable rate, the US government has by far a greater overall exposure, so therefore it can be more damaged by delinquencies. | | ---Larry Levin | | |
| | | | | | 
In conjunction with TheStreet.com and Bar Chart, Trading Advantage Chief Market Strategist Alan Knuckman provides a daily morning update on the global action in stock futures, gold, oil and interest rates. |
| | | | | | | | | Congratulations to Richard Geissler Congratulations to our student of the day Richard Geissler. Richard had a successful day trading in the Stocks classrooms closing out winners in a numbers of issues. He has been an active and successful student and has benefited from Charles Moon's stock education.Congratulations Richard! | | NOTICE: Testimonials are believed to be true based on the representations of the persons providing the testimonials, but facts stated in testimonials have not been independently audited or verified. Nor has there been any attempt to determine whether any testimonials are representative of the experiences of all persons using the methods described herein or to compare the experiences of the persons giving the testimonials after the testimonials were given. The average reader should not necessarily expect the same or similar results. Past performance is not necessarily indicative of future results. No person was compensated for providing a testimonial. |
| | | | | | OPTIONS: Volatility Commentary | ---Michael Shorr | | Let's visit the commodities segment of the market as most other markets have seemingly made this into a four-day workweek with all the nice late summer weather rolling in. Specifically,we would like to look at Coffee. Robusta coffee prices fell to their lowest level in more than two years with estimates on crop yields from Vietnam ranging higher. A weak Brazilian Real and a bumper crop in Columbia are factors in keeping Arabica prices lower as well. So, end users have a lower cost input this season. Who stands to benefit from this? Obviously, Starbucks (SBUX) and Green Mountain Coffee Roasters (GMCR) come to mind. Those are a bit too obvious. What about companies that may be off of most people's radar screens yet stand to benefit from the cost of lower coffee? Let's take a look at Smuckers (SJM), Krispy Creme (KKD) and Dunkin' Brands DNKN. First SJM. When we look at the chart we note that it is down from its highs and has traded sideways recently. When we compare implied vol to historical vol we see that IV is significantly overHV so we cannot identify anything that looks compelling for us to take a trade to the upside. DNKN has been in a sideways price pattern for quite awhile and IV is very closed to HV so, all-in-all, things are priced pretty fairly. That brings us to KKD. KKD reported earnings on 8/29 and they were not particularly good. The day before earnings, KKD traded as high as $23.30 and after the report release it traded as low as $19.65 and is now trading about $18.80. Implied vol was trading about 52% and is now trading about 45%. Historical vol is trading (depending on your time horizon) 50%-73%. So we have a strong fundamental case for a bullish play given the cost structure of the coffee input and we have an undervalued implied vol in KKD. An appropriate play would be to buy an Oct call spread or at-the-money October call, depending on your attitude towards risk. | |
| | | | | FOREX: Currency Spotlight | ---Charlie Lewis | | | | | Currency markets remained mostly firm during the first session of the week,while pending the 'evidence' which will presumably be made available -or at least more heavily insinuated at- during the President's speech regarding Syria on Tuesday evening. The Euro and British Pound rose,aided by the improving economic environment,and a lessening fear of macro repercussions from any penalty that may occur.
The calendar of economic reports remains light through the week until Friday,when PPI,Retail Sales and Consumer Confidence indicators will shed light on economic conditions. record levels and expectations for further increases remain strong as monetary policies diverge amongst the advanced economies.
Daily spot trading at Thomson Reuters fell to $107 billion in August verse $114 billion in the prior month. With your large hedge funds, money managers and institutional traders taking advantage of vacation days in August, September appears poised for quite a break out with the tremendous trade flows out and back into emerging markets as everyone braces for the Fed's decision. While the euro dollar is the most popular currency pair traded globally, the tight ranges should break out this month and that should be very supportive for larger trading volumes. | |
| | | STOCKS: Watch List | ---Charles Moon | | | | The markets jumped higher at the open and continued its progression to close near the highs of the day. The Dow closed up over 140 points, while the Nasdaq and S&P 500 closed up 46 points and 16 points for the session. Once the SPX broke through a key technical level, there was support found and the markets progressed higher during midday to the highs. Once we got to the top of the trading range, trading slowed all the way into the close. If we open in positive territory again tomorrow, expect support to come into play around 1667.00 in the SPX. We now have 1675.00 and 1700.00 insights in the short term if support is found. Look for the upside play now that we have crossed over the 50 Day Moving Average, especially if support is found at that key technical level. If the markets continue to try and progress higher, a great sign to play the upside is if the SPX finds support once again at the 50 Day Moving Average. Now that the SPX has crossed over this key technical level, the outlook should be more biased to the upside in the short term. Maintain shorter term positions, as recent trading is more choppy then trending. If a short term trend is in play, you must consider the FOMC meeting next week. We can have a very volatile reaction on news coming out, and getting caught on the wrong side is a recipe for disaster trading without stops. The short term play with small risk is the best way to play this market. Open Position: FB Stocks to Watch: INTC AAPL GOOG IBM AMZN BIDU LNKD FB TSLA GRPN CTXS CSCO NTAP JBL BAC PRU WFC GS JPM MS NFLX WDC DIS CROX STZ NKE UA LULU CHKP JNPR POT GMCR VZ T HOG MON YUM MCD LOW HD LEN TOL V MA AXP DFS LVS MGM |
| | | | | FUTURES: Technical Data | | | | | ES 1670.25 / 1661.25 POC… 1670.25 YM 15054 / 14994 NQ 3170.25 / 3150.75 | NOTES FROM THE PIT
|
| | | | | COMMODITIES: Play of the Day | ---Patrick Assalone | | | | Crude Oil had the only trade signal opportunities for the Market Profile Masters classroom on Monday as the market remains uncertain with global factors including the tensions surrounding Syria. Based on our educational methodology,we are looking for long signals only Tuesday, either a reversal off the bottom of the High Volume Area at 109.28 or a break out above 110.70. Click here to watch video |
| |  | | is a leading investment education firm that empowers traders to achieve and surpass their financial goals. More than 50,000 students have used Larry Levin's proven techniques for powerful results. | | | | | IMPORTANT NOTICE: Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don't trade with money you can't afford to lose. Nothing in our website shall be deemed a solicitation or an offer to Buy/Sell futures and/or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on our site. Also, the past performance of any trading methodology is not necessarily indicative of future results. Trading Advantage LLC provides only training and educational information. By accessing any Trading Advantage content, you agree to be bound by the terms of service. Click here to review the terms of services. DAYTRADING involves high risks and YOU can LOSE a lot of money. Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under- or over-compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to those talked about in our site. | | 
 
| |
No comments:
Post a Comment
Keep a civil tongue.