Are You Being Yanked by the Shorts? By Dr. Russell McDougal Can you make your life’s fortune swimming upstream? Yea, I think you can. Stay within the school and you’ll receive what the masses historically receive… a portion of bread and a ton of circus. Make that bread and CNBC if you will. You are wise not to get caught up in the day to day and minute to minute pabulum thrown your way by the NY/DC axis of weasels. The knee jerk reactions they illicit are best left to the orthopedic surgeons. Let’s look at some big picture stuff. The most gullible people on the planet, overall, have U.S. zip codes. It is nothing short of astounding how many citizens buy into the official stats our government regularly dispenses. Distraction may just play a part in that problem. Life is complex and I confess to being easily distracted. We must insist on focus. Today we’re going to look into a criminal enterprise that would make Al Capone blush. He’s turning over in his syphilitic grave and kicking himself for not being the first to think of it. Lacking imagination, that guy. Here’s the deal. I’ll start with a poem… “he that takes what isn’t hizzen, pays it back or goes to prison”. Talk about an outmoded ditty. These days you can take what’s not yours, sell it, and not go to prison. White collar folk seldom do hard time in case you wondered. They just pay back 10 to 20% of their ill gotten gains. Would you like unlimited access to trade a market in your desired direction? Most of us simply buy stocks and go long that position. We are convinced it’s going higher. You can also short a stock. Say, for example, you believe IBM is going lower. You can sell IBM even though you don’t personally own it. You can call your broker tomorrow and sell IBM and the money from this sell will then appear in your account. This type of transaction is legal because the intermediary (your broker) can borrow IBM stock from a different client and sell this stock into the market. “Shorting” is a completely normal market function. You can go long or you can go short. It’s all good. Where’s the problem? You are not supposed to be able to short a stock unless you can actually access that stock. Do you think you could hold sway over a market if you were given unlimited access to that particular position? You don’t have to own it personally and you don’t even have to borrow it. It’s called a naked sale. You sell something you don’t own and have no access to. You can influence and actually dominate any market you choose with this mechanism. This is completely illegal if the intent is to force share prices lower. Unfortunately, the security laws regarding this type of fraud are not enforced. INTERNAL ENDORSEMENT Stock Market Shocker: How a Bunch of 5th Graders Made Fools of the Trading Elite…! Wall Street wants you to believe that you have to entrust your money with the professionals and all their skills, resources and systems, if you want to make money in the markets. It’s what these guys do for a living! How could you possibly beat them?! Nothing could be further from the truth. In fact, I have used an embarrassingly simple secret to make $15,048 in just 30 days... and boost my overall account balance 152% in less than a year. Keep reading to learn how you could join me each month... | Naked short sells are commonplace. U.S. hedge funds appear to be the primary abusers. Small cap stocks are the frequent targets. Some companies have more shares sold short than they have issued! This is an obvious fraud. Dishonesty has been institutionalized. The junior exploration stocks have long been abused by these activities. Recent events suggest this is about to cease. A gentleman named Jim Sinclair has just pledged his full attention and personal fortune to the cause of ending this fraud. Sinclair has been an absolute giant in the world of gold for decades. He knows his stuff. He is also completely fearless. His recent proposals put illegal short sale offenders on notice that they stand to be criminally prosecuted. A $50,000 gold reward is part of this picture. So is organizational activity. Expect more perp walks in the coming months and years. I strongly believe that the entire junior exploration and mining share sector has been under the influence of both legal and illegal shorting activity. This is a partial explanation for their recent failure to keep pace with various commodity prices. Their historic leverage to mineral prices has been M.I.A. for an extended period of time. We’ve definitely been swimming upstream, but the currents are now changing. It will just take a few exposures to put an end to illegal naked short selling. No one wants to spend their days alongside the deposed Elliot Spitzer. When, not if, the naked short-selling drag is removed from these small stocks, they will begin a price appreciation process. Those who are shorting them legally will have to close out their positions. The only way this can be done is to buy the shares back. The shorted companies will turn upward. Possibly with a vengeance. All small stocks are particularly vulnerable to targeted shorting. It’s not just those in the resource sector. The Enron debacle is more representative of our markets than most care to believe. We demand and deserve better. Invest Resourcefully, Rusty P.S. Jim Sinclair’s considered opinion is that gold is next heading above $1600. I don’t doubt him. Being short anything gold related when we head in that direction will be financial suicide. P.P.S. To let me know what you thought of today's article, send an e-mail to: feedback@investorsdailyedge.com. It's Déjà Vu All Over Again By Charles Delvalle Ford (F), General Motors (GM), and Chrysler haven’t been paying much attention to their past. The truth is every single problem they have today could have been avoided if they had just learned from their past. Back in the 1970’s, during the last oil shock, the big three saw sales drop off a cliff. At the time the big three’s mainstream cars were blazing fast, and had 400 cubic inch engines that produced in excess of 400 horsepower… and drove you about 13 miles on a gallon of gas. Click this link to see the top ten gas guzzlers of the 70’s. Japanese manufacturers, on the other hand, had fleet averages of 19-21 MPG. As you can imagine, Americans flocked to Japanese built cars in search for fuel economy. The big three eventually responded by pushing up fuel economy standards. But since the late 80’s, fuel economy in an American car actually moved down. Did they learn anything at all from the 70’s? It doesn’t look like it. Had they just put what they learned to practice, American manufacturers would have had the technology to make cars more fuel-efficient. But instead, they decided to dedicate over half of their sales to gas guzzling trucks and SUV’s. Now that gas prices are over $4 a gallon and sales of gas guzzlers have plummeted, American manufacturers will have to scale down in a big way. Expect this transition to take years… not months. And in the meantime you’ll continue to see multi-billion dollar losses. As Yogi Berra would once said “It’s Déjà vu all over again”. INTERNAL ENDORSEMENT Winners Cherry Pick! Losers Bottom Feed Thousands of stocks have just fallen 40% or more... most will continue to tumble… but you should still overpower the markets. Because a select few stocks are now set to roar back for outstanding near-term gains. It’s time to party like it’s 2002 You don’t want to miss out… because, today, you can jump into any one of seven companies at what should be their once-in-a-lifetime lows… each is poised to take you to new highs. Grab this low-hanging fruit here. | If you enjoy IDE's daily investing advice, you'll definitely be interested in checking out our sister publication, Early to Rise. Each morning, you'll get powerful wealth-building advice covering real estate, entrepreneurship, personal finance, marketing, and much more. Sign-Up for Early To Rise today! To unsubscribe, Click here To change your email address, Click here To cancel or for any other subscription issues, write us at: Investor's Daily Edge 245 NE 4th Ave, Suite 201 Delray Beach, Fl 33483 Phone: (800) 681-4759 |