Does anyone know how safe our investment funds are in Fidelity
Investments or other brokerage houses, and if they are covered
under the $250,000 FDIC insurance?
I am wondering if I should move some funds to another
brokerage? Not sure how to get physical gold or Swiss Franks
and how to hold them but I do have more than $250,000 in
Fidelity.
another good place to convert to different currencies is
everbank.com. They have many different funds, CDs, etrc. in
differentr currencies. Of course, not the safety of actual
cash.
Posted by treid4dou on 4th of Oct 2008 at 10:39 am
but if cash is insured up to 100K....and an investment up to
500K...as u said.....maybe better to be in something....trouble
is......everything falling apart...including Gold. In terms of
commissions....$10 may not be expensive depending of how much cash
we are talking.....but at least during wkends...when bad news
arise.... And specially nowadays when cash positions may be
high...
You are covered upto 500K by SIPC with Fidelity and then upto 5M
or so thru excess SIPC .. You canbuy Swiss Frac by purchasing FXF
(make sure your timings are right as Deflation can give another
boost to dollar). I have some dealers that I have purchased coins
in past PM me for that else Kitco is another place to buy..
Posted by treid4dou on 4th of Oct 2008 at 08:14 am
Made the same question...nobody answered.......Guess you might
split amounts into accounts (within same Broker or between
different Br.).....each under the guarantee number. I even
thought that if Broker has account in Bank that collapses....what
happens with your monies ????? If its cash...???? .
Maybe better have stocks...at least you are entitled to
them....although not clear if there is a BK...how would one stand
if in cash, or if with stocks.....and if you are short stocks...and
Broker goes down......would you be able to cover ?????? Who
would have thought that the US would have the same troubles one
finds in 3rd. world countries. Seems money is safer in these ones
now...than in US.......Will try find a Broker in Somalia.......
Brokerage accounts are insured by the SIPC which is like the
FDIC for banks. Accounts are insured for up to $500,000
of which $100,000 can be
cash. But almost all brokerage houses have their own
insurance which protects accounts into the millions of
dollars. So in this environment the real queation, I guess,
is -- how stable is the insurer that the broker is using?
I've been wanting to explore that further myself. If anyone
learns more, please post it.
Posted by treid4dou on 4th of Oct 2008 at 08:33 am
And still.....the problem might not be the Broker.....but the
Brokers Bank.....Suppose there is a
bankruptcy.......whats your situation as an account holder with the
Broker..???? Learned that over 300K accounts are
in trouble under the LEH situation....and many are Hedge Funds with
clients accounts.....If you live in abroad....you have to go to
court in US, get a lawyer, ...???? Better buy some
land, and grow soybeans....then.....
Posted by treid4dou on 4th of Oct 2008 at 08:27 am
Tks. I think this issue should be a priority ...at least
here in BPT...for all of us to get involved...and find out where
are we standing. My broker says $100K cash..guaranteed.....so
if everybody is in cash....we are at risk....dont we ???? One could
buy treasuries at close...daily...with the cash
position....????
Something that would be helpful. As each person posts info from
their respective brokerage's, please could you state WHO your
account is with. That way, we can share info on the ones that
matter to us individually and not assume that one is the same as
the other. Just something I think would be helpful.
that's a serious question -- is it a good idea before the close
every day to put cash into a stable investment. Even at
commissions of $10/day though, that's pretty expensive
insurance.
Whether its necessary or not I don't know, but I have my money
split up between Ameritrtade, Interactive brokers and now
Tradestation. I originally had multiple accounts for three
reasons: the platforms, so that I could clearly
seperate long-term trades, swing trades and short-term trades
in my mind, and so that if one brokerage had problems or was
down I could use the others to manage positions. Now I like
the added benefit of having money spread around.
Kitco is the easiest place to buy gold from. You order
online at whatever the spot price is at the moment you order.
You put it on a credit card, they ship the gold.
I myself want to add some more physical gold and am wondering
whether to start averaging in now, or will there be a drop closer
to 700. If I had it to do again I would have bought at
735.
Thanks everyone for the replies. This BEAR market could
get much uglier before we ever get a long term uptrend (even
if we get that bounce at the end of October, most of us
believe that it would be just another Bear market
bounce)
Elliott Wave International says that we are continuing the GRAND
SUPERCYCLE DOWN that started on January 14, 2000. And that the
Suprecycle, Cycle, Primary and Intermediate trends are all
DOWN. (Steve and Matt and RP have been telling us for a
while now that the Primary trend is down) Dow theory just
Reconfirmed that yesterday when the Dow Transports undercut their
previous low from January.
I am thinking that for now, I'll move some funds to different
brokerage houses and not keep any more than $100,000 in cash in
each. Not too sure about the implications of investing in QID
and TWM, SDS and SRS type of funds as I am holding some
of these. I do have separate accounts for Long term and
shorter term trades but they are all with Fidelity and heavy in
cash.
I am retired so I would rather be a bit cautious at this time so
thanks for all the suggestions. Enjoy your weekend. FinaM
Posted by junkmaylbox on 5th of Oct 2008 at 09:22 pm
Matt, Pardon my stupid question on that. SRS is an ultra fund
based on dj real estate index (I googled for holdings SRS). Are you
recommending SRS for a trade here in fact? I asked that question
separately, I see your charts as a corroboration of my intended
trade.
Roy, if that chart plays out, then SRS should go a lot high; but
of course, realize that we could see violent moves one way or
another, so realize that you would have be be able to sit through
this if you wish to try and swing trade it. These are very
unprecidented times
Posted by junkmaylbox on 5th of Oct 2008 at 10:26 pm
I understand. You and Steve reiterated extreme caution
during the weekly bulletin tonight. I don't want to be a hero.
Would you take this trade now? If yes, what percent would you use
for a stop (as a trailing stop or in terms of average true range)?
I have no experience trading during unprecedented times like this
one. I am okay with not taking the trade at all, I am looking for
some guidance in numerical terms. I presume the same applies to
your trades on the watch list as well (AVN in particular). Thanks
for your help on this! -Roy
be careful...it looks like SRS will gap up significantly....I
would not suggest buyin until you get a pullback....I own it and
might be selling pre/mkt
a co-ordinated rate cut may come at any time....also I believe
the SPX may open around 61.8% retracement levels...
Posted by treid4dou on 4th of Oct 2008 at 12:06 pm
I think the January lows for Transports have not yet been
breached.I have the Jan. lows at: $TRAN : 4032.....and
IYT: 66.95.......Am I wrong ???? (Lows ...NOT on
a closing basis).
Posted by maggi3322 on 4th of Oct 2008 at 11:37 pm
this from fridays elliott wave (I know, they're a little
vague)
Now what? Both the U.S. House and Senate have each passed
their respective versions of the big bailout bill and the president
signed it into law today. But what happens now when the stock
market decisively breaks down from current levels? A break lower
here is when some degree of panic will arise since “the bill” that
just passed is thought to somehow address the market’s problems. It
won’t, nor can it. One day of stock market decline on Monday of
this week wiped out over $1 trillion dollars of stock market
capitalization, greater than the $700 billion (+) total of our tax
money that is supposedly being allocated to “fix” the problem (with
an estimated $152
billionof “pork” included for congressional pet projects,
it’s a pig of a bill…ba da boom, please tip your waitress.). The
market, by virtue of its sheer size, is the master. And here’s the
kicker from a stock market technicians point of view: the same day
that the bailout bill passes, which will supposedly save the world,
the Dow Jones Transportation Average closes beneath its January
low, thereby reconfirming the major Dow Theory bear market signal
issued last November. EWT, EWFF and STU subscribers have been
bearish since the dual market highs last July-October, and we even
alerted you to the original Dow Theory Bear Market signal last
November. So even this venerable market signal is falling in line
with our forecast and all the Dow Theorists should now agree.
Thanks vmath for posting that. EWII and several
others also talk a lot about the TED Spread. I know that
they said it is the difference between the safer US T-bills and the
Libor and the implications are NOT good here right now and that
while credit spreads continue to widen the stock market should
remain under downward pressure, at times severe.
We may have had some talk of this on the blog and I missed it
but if you or someone here can explain the Ted Spreads implications
in some basic terms, I would also appreciate that. and even a chart
that I could save to Stockcharts.
Maybe Bloomberg is the only one with this chart as it does not
seem readily available. Fina
Posted by maggi3322 on 5th of Oct 2008 at 12:05 pm
according to Elliott Wave. Safe Money reports has been calling
for a major depression similar to the 1930's for the last five
years. HS Dent has been calling for a major rally before the
markets melt down, who the heck is right? Appears that HSDent might
be a little off ;)
Posted by marketguy on 5th of Oct 2008 at 08:56 pm
I "believe" HS Dent had the top in somewhere between 2008-2010
(or 2009-2010) in the "Great Boom Ahead" (written in the mid 90's I
think)...granted the Dow never reached 30-40k as he thought it
would but either way I'm guessing his depression scenario
is/has arrived...sad times my friends, sad times....I wouldn't be
"surpirsed" to see a late 2001 type rally (ie maybe we get back to
1300+...not sure how we do it but have to consider it a possibility
as this year is so correlated to 2001 with the 10/20
month moving avgs, bollinger bands, etc).
Posted by dowjones4k on 6th of Oct 2008 at 09:48 am
yes he did i have read many of his writings and he is predicting
a depression type event this time. it is happening a little
earlier than he predicited.
Posted by treid4dou on 4th of Oct 2008 at 07:41 pm
we will have to watch the Dow/Trannies ...making lower lows
BOTH.....for a DT confirmation..... so its all about the trannies
now......guess bears are going to pull the trannies
hard....down....
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Investment Accounts
Buried in the 700 billion dollar bailout was this gem giving the solar industry major tax advantages
Posted by finam on 4th of Oct 2008 at 07:59 am
Does anyone know how safe our investment funds are in Fidelity Investments or other brokerage houses, and if they are covered under the $250,000 FDIC insurance?
I am wondering if I should move some funds to another brokerage? Not sure how to get physical gold or Swiss Franks and how to hold them but I do have more than $250,000 in Fidelity.
Thanks, FinaM
another good place to convert
Posted by Michael on 4th of Oct 2008 at 09:28 am
another good place to convert to different currencies is everbank.com. They have many different funds, CDs, etrc. in differentr currencies. Of course, not the safety of actual cash.
but if cash is insured
Posted by treid4dou on 4th of Oct 2008 at 10:39 am
but if cash is insured up to 100K....and an investment up to 500K...as u said.....maybe better to be in something....trouble is......everything falling apart...including Gold. In terms of commissions....$10 may not be expensive depending of how much cash we are talking.....but at least during wkends...when bad news arise.... And specially nowadays when cash positions may be high...
You are covered upto 500K
Posted by gmohan on 4th of Oct 2008 at 08:56 am
You are covered upto 500K by SIPC with Fidelity and then upto 5M or so thru excess SIPC .. You canbuy Swiss Frac by purchasing FXF (make sure your timings are right as Deflation can give another boost to dollar). I have some dealers that I have purchased coins in past PM me for that else Kitco is another place to buy..
Made the same question...nobody answered.......Guess
Posted by treid4dou on 4th of Oct 2008 at 08:14 am
Made the same question...nobody answered.......Guess you might split amounts into accounts (within same Broker or between different Br.).....each under the guarantee number. I even thought that if Broker has account in Bank that collapses....what happens with your monies ????? If its cash...???? . Maybe better have stocks...at least you are entitled to them....although not clear if there is a BK...how would one stand if in cash, or if with stocks.....and if you are short stocks...and Broker goes down......would you be able to cover ?????? Who would have thought that the US would have the same troubles one finds in 3rd. world countries. Seems money is safer in these ones now...than in US.......Will try find a Broker in Somalia.......
Brokers insured
Posted by Michael on 4th of Oct 2008 at 08:22 am
Brokerage accounts are insured by the SIPC which is like the FDIC for banks. Accounts are insured for up to $500,000 of which $100,000 can be cash. But almost all brokerage houses have their own insurance which protects accounts into the millions of dollars. So in this environment the real queation, I guess, is -- how stable is the insurer that the broker is using? I've been wanting to explore that further myself. If anyone learns more, please post it.
And still.....the problem might not
Posted by treid4dou on 4th of Oct 2008 at 08:33 am
And still.....the problem might not be the Broker.....but the Brokers Bank.....Suppose there is a bankruptcy.......whats your situation as an account holder with the Broker..???? Learned that over 300K accounts are in trouble under the LEH situation....and many are Hedge Funds with clients accounts.....If you live in abroad....you have to go to court in US, get a lawyer, ...???? Better buy some land, and grow soybeans....then.....
Tks. I think this issue
Posted by treid4dou on 4th of Oct 2008 at 08:27 am
Tks. I think this issue should be a priority ...at least here in BPT...for all of us to get involved...and find out where are we standing. My broker says $100K cash..guaranteed.....so if everybody is in cash....we are at risk....dont we ???? One could buy treasuries at close...daily...with the cash position....????
Brokerage Accounts
Posted by rgoodwin on 6th of Oct 2008 at 02:28 am
Something that would be helpful. As each person posts info from their respective brokerage's, please could you state WHO your account is with. That way, we can share info on the ones that matter to us individually and not assume that one is the same as the other. Just something I think would be helpful.
that's a serious question --
Posted by Michael on 4th of Oct 2008 at 09:33 am
that's a serious question -- is it a good idea before the close every day to put cash into a stable investment. Even at commissions of $10/day though, that's pretty expensive insurance.
Whether its necessary or not
Posted by Michael on 4th of Oct 2008 at 08:08 am
Whether its necessary or not I don't know, but I have my money split up between Ameritrtade, Interactive brokers and now Tradestation. I originally had multiple accounts for three reasons: the platforms, so that I could clearly seperate long-term trades, swing trades and short-term trades in my mind, and so that if one brokerage had problems or was down I could use the others to manage positions. Now I like the added benefit of having money spread around.
Kitco is the easiest place to buy gold from. You order online at whatever the spot price is at the moment you order. You put it on a credit card, they ship the gold.
I myself want to add some more physical gold and am wondering whether to start averaging in now, or will there be a drop closer to 700. If I had it to do again I would have bought at 735.
Brokerage Houses
Posted by finam on 4th of Oct 2008 at 10:53 am
Thanks everyone for the replies. This BEAR market could get much uglier before we ever get a long term uptrend (even if we get that bounce at the end of October, most of us believe that it would be just another Bear market bounce)
Elliott Wave International says that we are continuing the GRAND SUPERCYCLE DOWN that started on January 14, 2000. And that the Suprecycle, Cycle, Primary and Intermediate trends are all DOWN. (Steve and Matt and RP have been telling us for a while now that the Primary trend is down) Dow theory just Reconfirmed that yesterday when the Dow Transports undercut their previous low from January.
I am thinking that for now, I'll move some funds to different brokerage houses and not keep any more than $100,000 in cash in each. Not too sure about the implications of investing in QID and TWM, SDS and SRS type of funds as I am holding some of these. I do have separate accounts for Long term and shorter term trades but they are all with Fidelity and heavy in cash.
I am retired so I would rather be a bit cautious at this time so thanks for all the suggestions. Enjoy your weekend. FinaM
Dow Jones Real Estate Index
Posted by matt on 5th of Oct 2008 at 08:36 pm
Dow Jones Real Estate Index
Matt: Would you post the
Posted by srleblanc on 6th of Oct 2008 at 01:42 am
Matt: Would you post the dynamic link for the $DJR? Thx
Dow Jones Real Estate Dynamic
Posted by matt on 6th of Oct 2008 at 04:15 am
Dow Jones Real Estate Dynamic link
Dow Real Estate index
Posted by junkmaylbox on 5th of Oct 2008 at 09:22 pm
Matt, Pardon my stupid question on that. SRS is an ultra fund based on dj real estate index (I googled for holdings SRS). Are you recommending SRS for a trade here in fact? I asked that question separately, I see your charts as a corroboration of my intended trade.
Roy, if that chart plays
Posted by matt on 5th of Oct 2008 at 09:55 pm
Roy, if that chart plays out, then SRS should go a lot high; but of course, realize that we could see violent moves one way or another, so realize that you would have be be able to sit through this if you wish to try and swing trade it. These are very unprecidented times
a trade on SRS
Posted by junkmaylbox on 5th of Oct 2008 at 10:26 pm
I understand. You and Steve reiterated extreme caution during the weekly bulletin tonight. I don't want to be a hero. Would you take this trade now? If yes, what percent would you use for a stop (as a trailing stop or in terms of average true range)? I have no experience trading during unprecedented times like this one. I am okay with not taking the trade at all, I am looking for some guidance in numerical terms. I presume the same applies to your trades on the watch list as well (AVN in particular). Thanks for your help on this! -Roy
be careful...it looks like SRS
Posted by dylan398 on 6th of Oct 2008 at 07:55 am
be careful...it looks like SRS will gap up significantly....I would not suggest buyin until you get a pullback....I own it and might be selling pre/mkt
a co-ordinated rate cut may come at any time....also I believe the SPX may open around 61.8% retracement levels...
Dylan: why would you sell
Posted by srleblanc on 6th of Oct 2008 at 09:10 am
Dylan: why would you sell pre-mkt if you expect SRS to gap up? what am I missing?
105 is dollars higher than
Posted by dylan398 on 6th of Oct 2008 at 09:21 am
105 is dollars higher than the close friday.......it may go higher...I'm a short term trader....I may buy it back, if I see strength..
Thx - got it
Posted by srleblanc on 6th of Oct 2008 at 09:38 am
Thx - got it
SRS
Posted by drorlando on 6th of Oct 2008 at 09:44 am
If you are gonna buiy her back, better be watching here, soon she will be a buy again!
I think the January lows
Posted by treid4dou on 4th of Oct 2008 at 12:06 pm
I think the January lows for Transports have not yet been breached.I have the Jan. lows at: $TRAN : 4032.....and IYT: 66.95.......Am I wrong ???? (Lows ...NOT on a closing basis).
this from fridays elliott wave
Posted by maggi3322 on 4th of Oct 2008 at 11:37 pm
this from fridays elliott wave (I know, they're a little vague)
Now what? Both the U.S. House and Senate have each passed their respective versions of the big bailout bill and the president signed it into law today. But what happens now when the stock market decisively breaks down from current levels? A break lower here is when some degree of panic will arise since “the bill” that just passed is thought to somehow address the market’s problems. It won’t, nor can it. One day of stock market decline on Monday of this week wiped out over $1 trillion dollars of stock market capitalization, greater than the $700 billion (+) total of our tax money that is supposedly being allocated to “fix” the problem (with an estimated $152 billionof “pork” included for congressional pet projects, it’s a pig of a bill…ba da boom, please tip your waitress.). The market, by virtue of its sheer size, is the master. And here’s the kicker from a stock market technicians point of view: the same day that the bailout bill passes, which will supposedly save the world, the Dow Jones Transportation Average closes beneath its January low, thereby reconfirming the major Dow Theory bear market signal issued last November. EWT, EWFF and STU subscribers have been bearish since the dual market highs last July-October, and we even alerted you to the original Dow Theory Bear Market signal last November. So even this venerable market signal is falling in line with our forecast and all the Dow Theorists should now agree.
Thanks Maggi for the chart.
Posted by finam on 5th of Oct 2008 at 01:03 pm
Thanks Maggi for the chart. THAT was the one I was referring to.
you're very welcome, hope it
Posted by maggi3322 on 5th of Oct 2008 at 01:36 pm
you're very welcome, hope it helps
maggi Thanks for the post.
Posted by vmath on 5th of Oct 2008 at 11:17 am
maggi Thanks for the post. Richard Russell TAKE NOTE!!! LOL
Thanks vmath for posting that.
Posted by finam on 5th of Oct 2008 at 11:50 am
Thanks vmath for posting that. EWII and several others also talk a lot about the TED Spread. I know that they said it is the difference between the safer US T-bills and the Libor and the implications are NOT good here right now and that while credit spreads continue to widen the stock market should remain under downward pressure, at times severe.
We may have had some talk of this on the blog and I missed it but if you or someone here can explain the Ted Spreads implications in some basic terms, I would also appreciate that. and even a chart that I could save to Stockcharts.
Maybe Bloomberg is the only one with this chart as it does not seem readily available. Fina
finam glad you liked the
Posted by vmath on 5th of Oct 2008 at 12:00 pm
finam glad you liked the post... but credit goes to maggi
tks maggi.....so the important fact
Posted by treid4dou on 5th of Oct 2008 at 02:34 am
tks maggi.....so the important fact is the close. DT bear mkt. confirmed then.
according to Elliott Wave. Safe
Posted by maggi3322 on 5th of Oct 2008 at 12:05 pm
according to Elliott Wave. Safe Money reports has been calling for a major depression similar to the 1930's for the last five years. HS Dent has been calling for a major rally before the markets melt down, who the heck is right? Appears that HSDent might be a little off ;)
is that HS Dent's current
Posted by dowjones4k on 5th of Oct 2008 at 06:17 pm
is that HS Dent's current thinking or out of his books? if books which one?
I "believe" HS Dent had
Posted by marketguy on 5th of Oct 2008 at 08:56 pm
I "believe" HS Dent had the top in somewhere between 2008-2010 (or 2009-2010) in the "Great Boom Ahead" (written in the mid 90's I think)...granted the Dow never reached 30-40k as he thought it would but either way I'm guessing his depression scenario is/has arrived...sad times my friends, sad times....I wouldn't be "surpirsed" to see a late 2001 type rally (ie maybe we get back to 1300+...not sure how we do it but have to consider it a possibility as this year is so correlated to 2001 with the 10/20 month moving avgs, bollinger bands, etc).
yes he did i have
Posted by dowjones4k on 6th of Oct 2008 at 09:48 am
yes he did i have read many of his writings and he is predicting a depression type event this time. it is happening a little earlier than he predicited.
marketguy, could you post charts
Posted by maggi3322 on 5th of Oct 2008 at 09:13 pm
marketguy, could you post charts showing the correlation? tia
let's see if I have
Posted by marketguy on 5th of Oct 2008 at 10:23 pm
let's see if I have the chart thing down...sorry forgot to add the bollinger band but it has pentrated the lower band as it did at the time indicated in 2001 as well .
http://stockcharts.com/h-sc/ui?s=$SPX&p=M&b=5&g=0&id=p46377495172&a=152653276&listNum=5
looking at that S&P chart
Posted by paige386 on 6th of Oct 2008 at 09:11 am
looking at that S&P chart the vol is much larger now than in 2001.
Yes, January low was 4032
Posted by finam on 4th of Oct 2008 at 07:10 pm
Yes, January low was 4032 and we closed yesterday at 4134. We are close though. Not sure what charts EWII used.
we will have to watch
Posted by treid4dou on 4th of Oct 2008 at 07:41 pm
we will have to watch the Dow/Trannies ...making lower lows BOTH.....for a DT confirmation..... so its all about the trannies now......guess bears are going to pull the trannies hard....down....