NBR Call Buyers Active This Morning


Here’s an update on our Nabors Industries post from yesterday, Bob von Halle has the details: 

Very heavy buying of short dated NBR calls on the brief pullback in the stock below $8.00 on the open today. Several thousand of the Jan 8.5 calls (expiring on Friday) were bought for 7 to 9 cents per contract. Those have more than doubled now with the stock recovering to $8.20, and are trading at 18 cents. Over 13,000 have traded on the day as of this writing (9:25 CST) and buyers looking for a short term bounce higher over $8.50 by end of the week.  Full disclosure I have been long NBR stock in all my accounts for several months.

Wages Will Not Increase

So says the democrat/media complex.  Great video montage below from the Washington Free Beacon.  Enjoy:

More here:  www.freebeacon.com

Popping the Higher Education Bubble



The lede:  Nearly a decade ago, my then colleague Andrew Gillen suggested that one could say that higher education was in a bit of a “bubble”: over-exuberant “investors” in human capital, better known as students, were potentially misallocating their resources, becoming increasingly underemployed after graduation, leading to adverse financial consequences. In the private sector, bubbles, like those in the housing or stock markets, usually lead to “crashes” and sharp falls in prices along with diminished volumes of activity. In higher education, massive government subsidies mute the decline in volume (enrollment) and prevent big price (tuition fee) crashes, but some sort of correction is nonetheless observable.


Excellent stuff.  Read the whole thing:  www.mindingthecampus.org

Nasty Reversal


The major indexes(Dow 30 Industrials/S&P 500 Index/Nasdaq Composite)all gave back their very strong openings today, a sure sign of exhaustion.  Considering the blistering rally we’ve had already this year a bit of a shake out would be welcome.  Optimism is at extremely high levels due to the fact that we haven’t had a meaningful pullback(5%)in nearly 400 days.  We believe a much needed correction is on the way and with it, much more attractive entry levels.  Earnings season is about to get into full gear which will very likely increase volatility.  Initial target for the S&P 500 Index is the 2017 peak($2695.00), a dip of nearly 4% from today’s high.


Hat tip Charlie Bilello


A Major Bottom In Nabors Industries?


Nabors Industries(NBR)had a very rough 2017.  At the mid December lows the stock had dropped 70% from the January peak.  Over the last four weeks, as the energy sector has been in rebound mode, NBR has perked up nicely.  Major support near the $5.00 area, which held the 1999 and 2016 all-time lows, allowed shares to regain their footing at the October/November/December bottom.  At today’s early high NBR had rallied over 50% from the 2017 fourth quarter lows leaving behind layers of support in the process.  We believe more upside is ahead as the stock begins to pierce its declining 200 day moving average.  A close back below $7.00 would violate last week’s low sending a clear warning sign in the process.

Bob von Halle provides NBR option highlights:  Jan, Feb and March open interest on the $8 strike is significant (well over 15,000 contracts in each one) and dwarfs pretty much anything on the put side in terms of open interest. Appears option players have been positioning for upside over the past few weeks. Full disclosure I have been long NBR stock in all my accounts for several months.



That Was Fast

The Dow Jones Industrial Average begins the week above 26,000 after the fastest 1000 point gain in history:


Steady.  Higher.  Relentless.

Breaking Formation


From Strategypage.com:   JOINT BASE PEARL HARBOR-HICKAM, HI, UNITED STATES 01.11.2018 Four U.S. Air Force F-15C Eagle fighter jets from California Air National Guard’s 144th Fighter Wing return to base during Sentry Aloha 18-01 at Joint Base Pearl Harbor-Hickam, Hawaii Jan. 11, 2018. Sentry Aloha provides tailored, cost effective and realistic combat training for U.S. Air Force, Air National Guard and other Department of Defense services to provide U.S. warfighters with the skill sets necessary to perform their homeland defense and overseas combat missions. (Air National Guard photo by Senior Master Sgt. Chris Drudge)

Number One With A Bullet


This just in from what was once the best state in the Union:

Guess which state has the highest poverty rate in the country? Not Mississippi, New Mexico, or West Virginia, but California, where nearly one out of five residents is poor. That’s according to the Census Bureau’s Supplemental Poverty Measure, which factors in the cost of housing, food, utilities and clothing, and which includes noncash government assistance as a form of income.

Given robust job growth and the prosperity generated by several industries, it’s worth asking why California has fallen behind, especially when the state’s per-capita GDP increased approximately twice as much as the U.S. average over the five years ending in 2016 (12.5%, compared with 6.27%).

Read the whole thing:  www.pjmedia.com


– chart compliments of ZeroHedge.



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