Hello traders everywhere! Adam Hewison here, President of INO.com and Co-creator of MarketClub, with your mid-day market update for Tuesday, the 27th of August.
Syria Shakes The Market
Reading the news this morning, I see that we're going to strike Syria with cruise missiles and bombs as early as Thursday. How nice of us to announce what we are going to do in advance. No one knows what is going to happen when and if these events occur. All we can go on is the collective judgment of the market.
Bill Ackman Surrenders
Bill Ackman finally surrenders and shows how you can lose $500 million on a trade. In my humble opinion, activist investors should not be getting into old-style retail marketing stores like JC Penney (NYSE:JCP).
Eddie Lampert made the same mistake with Sears (NASDAQ:SHLD). He initially made money by selling off some core real estate, but now he's stuck with a mundane business that he is forced to run and is not going anywhere.
I would imagine that Mr. Ackman is probably feeling somewhat lost and despondent this morning, but relieved that his nightmare with JC Penney is over. It took him long enough to admit his mistake, and as I have said in previous blog postings, money management is the key. It doesn't matter how much money you have, the principles are still the same.
Oil
This is a market I have been waiting for and want to watch very closely, as a close over some key technical levels will catapult crude oil into a higher velocity rally. Today, I will be conducting an in-depth analysis of crude oil in my video update.
Gold Jumps Over $1400
With the uncertainty in Syria, gold jumped over $1400 an ounce as concerned investors were worried about the destabilizing effects of the US entering into this quagmire of a conflict. I cannot envision anything good and positive coming out of this impending disaster.
You can hear me talking about retail stocks in a recent interview I did on CNBC. You may enjoy hearing what I have say. Watch it here.
Have a great trading day,
Adam Hewison
President, INO.com
Co-Creator, MarketClub
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Have we not learned from Iraq yet,how much more of our blood and money will be sacrificed.
America should keep its hands off of Syria and Egypt.the Muslim world has to learn by them selves.
America paid a heavy price for its democracy,we went thru a civil war,does any body remember how many people died then,it was over 70000 ,20% of the population.
Please stay away
Why does this administration think we have to police the world? Obama thought we had 57 states, so perhaps he should be reminded that we're not even on the same continent!
It was over 600 THOUSAND lives lost in the "War Between the States", there was nothing "Civil" about it. It was started to satisfy Lincoln's ego to consolidate ALL political power in Washington DC. Sound familiar?
"Save the Union" was part of the propaganda.
The Emancipation Declaration was created TWO YEARS AFTER the War had started (look up the dates), and this because the North was loosing. "Free the slaves" was a rallying cry and was part of that propaganda to get more of the North to engage. That Declaration was created in hopes that the slaves would rebel against their Southern owners and tilt the War in favor of the North. There were slaves held by Northerners as well as well as child labor (slaves?) in the northern mills. Lincoln as a lawyer defended slave ownership in court as "private property" (look it up).
"History is written by the victors". Hence only the Northern view is taught in schools.
You are right, we have no business being in the Middle East. We are unwilling to learn from our mistakes or history.
Our foreign policy is based on "crisis of the moment" and political polls. In most cases since we are naive as to the culture and history of these nations, we generally have created the problems based on political polls and then plunge in again on the basis of political polls. Our enemies are laughing at us (again). We are once again "shooting ourselves in the foot".
Only the nations who want democracy, have it. We can't force democracy on nations. We NEVER learn.
"Politics or religion are the source of all wars."
Wise up America, study World history! "Those who don't learn from their mistakes are bound to repeat them."
Here endith the lesson(s)........
CHS
The US assumes that Russia will stand idly by while we attack a nation where it has a naval base and security agreements.
I think US hubris has reached such heights that it is now completely blind to the strategic implications of its actions.
That is, unless the plan actually is to start World War III. In that case, I would advise your readers to "sell".