Author Archives: jstradingnotes

About jstradingnotes

I spend a lot of time analyzing the economy and securities. The effort has enabled me to generate multi-thousand percent returns on my trading capital over the past twelve years. The next few years offer an incredible opportunity to take outsized gains from the markets. Large structural imbalances in the major western economies will result in enormous market volatility as the imbalances get resolved, offering generational money-making opportunities. The major imbalances are excessive sovereign debt, crazy risk concentration in major banks, and enormous derivative exposure in the financial sector. A systemic shock can easily create a default cascade through the financial system where one failure precipitates another and another and so on. Central banks are very aware of the risks, and they are filling the financial system with liquidity by printing new money, risking massive inflation in a few short years for the United States and Europe. China has 2-3 trillion in dollar exposure, and they would like to have far less for fear of continued currency devaluation (they've lost billions holding dollars as the value erodes). As the size of their holdings prevent them from rapidly liquidating their dollar assets (which includes U.S. treasuries), they are instead spending their dollars on resources (copper mines, rare earth metal mines, oil wells, etc.). Lately they have been accumulating gold assets, perhaps with a view to making the Renminbi convertible into gold and displacing the U.S. dollar as the international reserve currency. Their gold buying is enormous and presents an easy investment thesis: ride the Chinese horse and buy gold and gold stocks. In this blog, I'd like to share some of my trading ideas and insights on the markets as these exciting times unfold.

Blog Resuming At

I’m going to start writing my blog again at, a site for investment research, education, and ideas. I look forward to seeing you there. To Your Investing Success, Jonathan Advertisements

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Body Central Sets Up For Another Up Leg

Body Central (BODY) is a specialty retailer offering on-trend, quality apparel and accessories at value prices. As of March 8, 2012 the company operated 241 specialty apparel stores with plans of opening 35 additional stores (a 14.5% increase) during 2012.  Same store … Continue reading

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United Rentals May Have More Upside

United Rentals (URI), the largest equipment rental company in the world, has an integrated network of more than 550 rental locations in 48 states and Canada offering such items as forklifts, bulldozers, excavators, welders, and many others. Customers include construction and industrial companies, utilities, municipalities, … Continue reading

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Apple Top?

I saw this first on Peter Brandt’s blog about three weeks ago. Jesse Livermore might say Apple (AAPL) has a speculative chart with a possible topping formation, as illustrated in C. M. Flumiani’s 1965 book, The Stock Market Secrets of Jesse Livermore. … Continue reading

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Options Income From Dominion Resources

Dominion Resources (D), one of the nations largest producers and transporters of energy, focuses its strategy on electricity and natural gas to customers in the Midwest, Mid-Atlantic and Northeast regions of the U.S., a potential market of fifty million homes and … Continue reading

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Molycorp Carves A Bottom

Molycorp (MCP), owner of the largest-producing rare-earth mine outside of China,  supplies rare earth metal oxides, metals, alloys and magnets. The company’s products have critical uses in a range high technology products. After a six-fold price increase over nine months following its initial public offering (IPO) in … Continue reading

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Weird Weakness In Key Economic Indicator

The weak payroll numbers out this Friday (according to the government, nonfarm payrolls added 120,000 new jobs in March, down from 240,000 jobs added in February and below consensus expectations of 200,000) echo a disturbing trend I’ve been seeing lately in another … Continue reading

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