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Monday, August 6, 2012 – Front Running and Money Laudering – All in a Day’s Work

Front Running and Money Laundering – All in a Day’s Work – by Sinclair Noe DOW + 21 = 13,117SPX + 3 = 1394NAS + 22 = 298910 YR YLD -.02 = 1.55%OIL -.10 = 93.86GOLD + 8.00 = 1612.60SILV +.08 = 27.98PLAT – 5.00 = 1407.00 A couple of weeks ago I said we had entered the Dog Days of Summer; technically that was correct, however the Economic Dog Days officially start this week; there is almost nothing on the calendar, trading volume has dried up; today was the lightest volume of the year, excluding holidays. Knight Capital was trading again but not with the same vigor of last week. Knight managed to find a consortium of investors to pony up $400 million to allow the company to continue to scalp trades. High-frequency trading algorithms have flourished in the past few years, as under-regulation made way for non-regulation.  The mega banksters and their attendant trading firms figured out a way to  make huge trading profits virtually every day, off of their customers, by front-running, which means  they inserted themselves as middle-men into every trade. The high frequency traders set up computer rooms right next to the exchanges to assure they get super fast trade information, just a few milliseconds is enough. The high frequency trade algorithms submit bids-to-buy and offers-to-sell hundreds of times per second, and the computer programs determine exactly what price sellers and buyers are willing to accept. The bids and offers would be near-immediately canceled, because …

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Friday, June 15, 2012 – Greeks Look for a Bargain – by Sinclair Noe

DOW  +115 = 12,767SPX + 13 = 1342NAS + 36 = 287210 YR YLD -.02 = 1.59%OIL – 1.11 = 82.80GOLD + 3.40 = 1627.70SILV + .10 = 28.84PLAT – 8.00 = 1490.00Sunday there will be an election in Greece. I don’t know how the election will turn out. I can’t find any consensus opinion. There may not be a consensus, even if there is a definitive winner. It appears the extremes are gaining in Europe because centrist parties are offering voters no meaningful choices. Pasok and ND (New Democracy) and Syriza. New Democracy is the old-guard conservative party; Pasok is the old-guard socialist party; Syriza is the new-upstart far left party. Golden Dawn is the new-upstart far right/neo-nazi party but they went to far during a televised debate last week when a spokesman started beating a woman on camera – that went too far and destroyed that fringe element. For Greeks that want to vote against the status quo they have no alternative but to vote for extremists. Right now it looks like New Democracy and Syriza will get the most votes, but not a majority, so they will have to pull together a coalition government, which they failed to do one month ago. But again, the election could swing in any number of unusual ways. Some common themes from Greek voters is that they feel they are being blackmailed into voting for parties that drove the economy into a ditch and blindly imposed austerity measures. The Euro-zone support for …

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