Biderman’s Daily Edge 4/17/2012: Tax-Oriented Inflows Helping Stock Prices

Apr
17

The S&P 500 popped 1.6% today. The media will come up with logical reasons as to why. But not one of them will report the real reason. The real reason is based upon supply and demand.

Today, April 17 is tax day. Over $140 billion in tax payments are being sent to the US Treasury this month and the due date is today.

The market sells of early in April in years when the market start strongly, like this year. Why? Again supply and demand…Read More

Biderman’s Daily Edge 4/16/2012: Ignorance is Bliss Regarding Economic Data

Apr
16

Ignorance is bliss, particularly when it comes to US government economic data. The latest bad joke occurred this morning when the US Census Bureau said retail sales rose 0.8% in March.

And the financial press reported that 0.8% sales increase as gospel showing once again how totally ignorant the media is when it comes to reporting economic numbers put out by the US government. The AP headline was that US retail sales in March rose 0.8%, helped by job gains. The Wall Street Journal online site reported not only that U.S. retail sales rose 0.8% in March, but also that Americans spent more on autos…Read More

Could the Yankees be in Play for $3-4 Billion?

Apr
16

By Dan Dorfman

Dan DorfmanDorfman And Dollars
Dan Dorfman follows the dollars and sense of the markets 

Last week, we saw another one of those periodic outbursts of acquisition fever, with both Microsoft and Facebook announcing billion-dollar deals. Even more relevant to sports fans is the question of whether that fever could soon spread to our national pastime, as well, notably to the storied New York Yankees, which, according to an estimate from one financial big hitter, could command a $3-$4 billion price tag.

That’s the enticing speculation making the rounds among some big-time financial players in sports circles following the recent blockbuster $2 billion sale of the Los Angeles Dodgers to a group, including former basketball star Magic Johnson and film producer Peter Gruber, the man behind “Rain Man.” That purchase price, which will include the use of funds from insurance companies, is widely perceived as out of touch with economic reality and strictly an ego trip for rich guys , with some baseball watchers of the opinion that the buyers may have overpaid by as much as $500 million…Read More

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Biderman’s Daily Edge 4/11/2012: Go Long on Gold, Short on Euro

Apr
12

Today I am reaffirming my start of 2012 recommendation to go long the gold ETF, GLD and short the Euro ETF, FXE. After a third of the way through 2012, GLD is up about 6%, the Euro is virtually unchanged and US stocks are up 9% as this is being recorded. I still recommend dollar cost averaging both GLD and at the same time shorting the FXE. I have been predicting that US stocks eventually will sell off, but while that might have already started, I really think that the big sell off will not start until after April…Read More

A Dunce Cap for Lou Dobbs

Apr
10

By Dan Dorfman

Dan DorfmanDorfman And Dollars
Dan Dorfman follows the dollars and sense of the markets 

It happens to every market watcher. They make some outrageous forecast about the direction of stock prices and wind up looking like a buffoon as their prediction turns out to be dead wrong. I speak from experience because I’ve goofed more than I’d like to admit. In that context, this week’s dunce cap for market forecasting goes to Lou Dobbs, an anchor at the Fox Business Network.

Last Thursday, Dobbs took Fox viewers on a trip to cloud nine when he bellowed his blissfully happy message that every investor loves to hear–namely, any future market losses would be contained. The clear inference was we can say goodbye to those large or nasty triple-digit losses; from now on, it’s just small declines in the future…Read More

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Biderman’s Daily Edge 4/9/2012: Prices Should Fall This Tax Season

Apr
09

US taxpayers in April 2011 sent $140 billion to the US Treasury. While I have no idea how much taxes will be paid this April, I am pretty sure that billions of dollars in stocks still will be sold to pay taxes. That should keep pressure on stock prices the rest of this week, everything else being equal.

The biggest story today is that the financial markets were shocked, shocked that Friday’s jobs number was disappointing. After all, the Bureau of Labor Statistic had been guessing that an average of 250,000 new jobs were created each month, after seasonal adjustments, from December to February. Over that same time frame there appeared to be an improving trend in weekly new unemployment claims…Read More

ActiveBear’s Love Affair With Troubled Stocks

Apr
09

By Dan Dorfman

Dan DorfmanDorfman And Dollars
Dan Dorfman follows the dollars and sense of the markets 

It never fails. Stock market rallies always run out of steam. So you don’t need an Einstein IQ to recognize that at some point–please don’t ask me when–the current rally will also fizzle and prices of lots of overbought equities will slide, leading to a speedy erosion of the profits generated during the S&P 500′s 29% rise over the past six months. In fact, the market’s down action in recent days could be a hint that such a process may already be evolving. So for sure, you want to avoid stocks that can butcher you in a falling market… Read More

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TrimTabs Says U.S. Economy Added 187,000 Jobs in March – TrimTabs Three-Month Average of 172,000 New Jobs is 30% Less than BLS’ 245,000

Apr
04

Sausalito, CA – April 4, 2012. TrimTabs Investment Research estimates the U.S. economy added 187,000 jobs in March. In the past three months, TrimTabs says, employment growth has averaged 172,000. Meanwhile, the consensus view is that the U.S. Bureau of Labor Statistics (BLS) will report 200,000 new jobs on Friday for a three-month average of about 245,000.

TrimTabs’ employment estimates are based on an analysis of daily income tax deposits to the U.S. Treasury from all salaried U.S. employees. They are historically more accurate than initial estimates from the BLS…Read More

Charles BidermanCharles Biderman is the Chairman of TrimTabs Investment Research and Portfolio Manager of the TrimTabs Float Shrink ETF (TTFS)

Biderman’s Practices of Success

I recently launched a new online course, Biderman's Practices of Success, on Curious.com (curious.com/charlesbiderman). The key to the practice of success is to be fully present in the moment and to be totally engaged in the important areas of life, particularly when we do not want to be. Read More.

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