Wednesday, August 29, 2012


It appears my protest to the proposed Corleone payment to the PFG lawyer gained some momentum yesterday. Essentially the argument seems to be that she is working very hard, poor girl, for 30k a month, I think most of my readers would also. According to some reporters I spoke to yesterday, the Corleone bribe payment is an attempt to stop her from fleeing the scene of the crime to go work elsewhere. I am sure offers are just pouring in the window, for someone who was the counsel of the firm that is going to wind up having stuck it's customers with the largest percentage loss in history, for a seg theft case. It may well be she was not complicit, but competent? I certainly would not want it on my resume, that I was the in house counsel for PFG, but that is just me.

In any event, I did stir this up some, and a couple of motions were filed by others in the court yesterday attempting to block the payoff. Of course the above photo is me whispering in the courts ear that I think it is a bad idea. My label of this as a Corleone is getting it's fair share of chuckles out of reporters. I did speak with the trustee's office yesterday, with one person in particular that I have spoken with previously. I will not disclose what was discussed because I gave my word that I would not. I can tell you from that talk that I think things are better underneath than they appear on the surface, and I do think they are doing what needs to be done. I did point out the lack of disclosure as being a problem for the victims. I think there are some legal things that prohibit them from disclosing certain things, so we basically wind up where we are. I guess in the end we will find out how good the trustee is, he does have a good resume for what it is worth. There is one person at the firm that I really like, who has been very courteous to me each time I have spoken with them. I am just going to assume Bodenstein is doing what is necessary now that I have made my point about the Corleone.

I have a day under my belt with the Think or Swim Platform...... not a huge fan so far. However, it is tolerable. It kind of reminds me of trading in that we all tend to make things too complicated, and we want to cover every possible angle in the rules. In the end we always find out that making things simple works better. I think that is the case with this platform, but I really need some time to get used to it.


Just as life is ever evolving, so is my website. I have a fellow trader who is one of the best traders I know, who is going to join me. We have something very unique we are going to do, and you will see it once the site comes up. I don't think anyone else is doing it. I have decided to offer an addition to the Bond Service, a service for all the other markets, as well as a monthly newsletter. The newsletter is going to be very cheap. It is going to go into very specific trading ideas, systems, etc.. For those who go for it, the annual cost will be so low that the first issue will give readers more value than what the annual cost will be. The idea is to get a lot of people reading it. Just like anything else, I am going to have to hype it some, but as per how readers know I am, it will not be BS. I am not an over hype guy as anyone reading here for any period of time, knows by now. Look for this in about two weeks.


I mentioned yesterday that we have had some significant commodity declines in September, are we going to have one this year?

This is the weekly CRB Index chart. Since it is not traded, ignore the Open Interest being low. What I wanted to highlight here is that we have had significant selling on this rally with the COT Proxy Index, and Sentiment has gotten very bullish. These two things occurring together, generally are a bearish development. It is scenarios like this and how to trade them specifically, that I will be covering in the newsletter. That is why I said one issue will we worth a lot in terms of value. There are some very good trades to be had in situations like this.

There are a lot of things going on right now in regards to the election, the drought in Grains, will Romney fire Comrade Ben if he wins? There is a very strong agenda for the stock market to stay stable here, so I think the FED will really be holding up the indexes with buy programs. I am watching very carefully the energy and grain markets here. We have superb trends in them that have not showed any signs yet of weakness. However, with the heavily seasonal down tendency here, and the cyclical downward pressure that is there right about now, it is time to be on the lookout for a trend change.

The last thing I wanted to show today was a trade I did in Sugar yesterday that worked out very well.

This was basically a day trade that was done due to the setup you see above, and a pattern in price I thought was favorable. I have harped on COT but have always said there are times to use it and times not to. In this case it was time to pay attention to it. This was a very short term scalp basically, but 40 ticks in Sugar in a day trade is an awfully good win. This is not a market that typically moves a lot.

You can see in this market the last time we had big bearish sentiment and big COT buying, we had that huge rally about 6 months ago. Will that happen out of this? Who knows, but I got on the board with a quickie yesterday. If I see a short term trend change, I will try and ride a long trade for much longer that I did here. This one is on my watch list for a trend change.

I guess the happy ending thought for the day is tied to the Corleone controversy. At times it seems like as an individual you can't make a difference. However, you can see with this event, that I did. If something is important to you, don't give up. Fight the good fight, you just never know what might happen.

Good Trading


Robert said...

Sounds exciting your new website , newsletter , etc--
Looking forward to the details--
Will it be more of a day trading or more swing type trading ?
For those of us that work full time its hard to be in front of a computer all day waiting for buy and sell updates.


Anonymous said...

Way to go for taking the lead on the mishappenings in the PFG trustee/lawyer issue.
Personally I don't think any staff lawyer is worth $30,000 per month and in her case I think she should be disbarred for presiding over the criminal activity thgat took place at PFG. I mean afterall what exactly was her job that she was paid $30,000 to do?
Don in Virginia
PS your experiences with Think or Swim are what drove a friend of mine away from TDA and is the reason I have shyed away form it. Us old guys are somewhat "technologically challenged"

Chris Johnston said...

don the platform is actually ok I think the charting aspect is really inferior but order entry is ok

Robert there will be some of both short and medium term things where you would not need to babysit. Most babysitters both of kids and of trades don't make much

Jerome Hamilton said...

Futures Trading is a very exciting way of trading but has a potential to bring you more fortune. Its now the largest trading in the market today.

@SusanCTShore said...

Do you have a link or any info I can print on the PFG attorney fee? I recently met with Rep. Jim Himes CT(on house finance comm) re: the PFG mess, and would love to add this to the info I've given him.

Chris Johnston said...

Susan this should work if it does not go to www.pfgchapter7.com and court docket over on the left, then go to this motion filed on 8/22 it is document 123