Monday, October 15, 2012


If you are going to try and trade the most controlled/manipulated trade in recent history then you must maintain cognitive acuity. The game is to lure you to sleep with virtually no movement or at least with a very deceptive move such as yesterday's early morning beatdown and then a slow imperceptible rise in the afternoon with a final hour push to green for several PM equities. Gone are the volatility days of 2008-2009. It is no accident. Too much hinges for the central bankers right now to maintain the carefully crafted resurgence of the equity market in the face of total economic collapse. Quite a feat and I take my hat off to them. As a trader or investor one must develop mechanisms to trade and find that one kernel that can make you money in markets like this. Maybe it is as simple as rebalancing one's portfolio between your overbot stocks into you "less overbot"......We have had some dramatic movements in AUQ and PPP recently that may have allowed you to "rebalance" into some of your stocks that haven't had those type of moves yet. Some of the best traders use different routines to trade and probably don't mind me sharing this one.

Coffee as a name comes from the Arabic word “qahwa” and the term “coffee” is also derived from the Turkish word “kahve.” It means ‘a drink made from the berries of plants’. There’s a legendary story of an Ethiopian shepherd’s sheep which stayed awake all night after eating coffee berries. Shepherd’s name was Kaldi who also tried the berries himself and discovered the same effects alertness. In Turkey, they say ‘coffee comes from Yemen’ which actually refers to coffee’s first use in Sufi ceremonies in Yemen. Sufis stayed up all night for praying by the help of coffee. The first coffee house (kahvehane) was opened in Cairo in 1521. In a short time coffee gained a reputation as the miracle drink among Islamic communities in Cairo, Damascus and Aleppo which were a part of Ottoman Empire. Finally in 1555, it came to Istanbul and was introduced to Western world by Turks later in the 17th century. Since then, coffee has played an important part in the lifestyle of the Turkish people.

Kind of makes your day get kick started for even markets like we are in now. Certainly in 08 we were running on the type of adrenaline that will come along only once in most of our lifetimes. If you survived it, then you can brag to a lot of people in the years to come that you traded one of the biggest crashes in history. Most of you will not fully grasp what happened to us all until we look back in about ten years.Unfortunately there will be even more dramatic changes ahead for us all. How it plays out is not clear yet, but it WILL involve a lot of pain for us all. It already has for many millions in our country and for hundreds of millions around the world. Again....this is only the beginning. You and I will play the game. That is what we are choosing to do. Perhaps we just cannot escape the conditioning, nevertheless we are still at the table.

Pay no attention to the short term movements here. Any compression of the upward move in PMs will only provide more energy for the next upshot. I only marvel at how easily they still play the sheep. Use leverage with decay as your enemy at your own peril. By all means stay alert. BACK to the title of this post...

There’s a certain way of preparing Turkish coffee. Other than having Turkish coffee beans, you need small coffee pot (copper is recommended) called “cezve” and Turkish coffee cups (thin porcelain cups like espresso cups) called “fincan”. If the beans are not ground, you will also need a Turkish coffee grinder (kahve degirmeni).  Here are instructions to make Turkish coffee: I was given personal instructions for Turkish coffee by one of the most feared traders on Wallstreet. This is what he drank to prepare for the morning battle with the big all
   1. Pour in cold water in the coffee pot (One cup of cold water for each cup you would like to serve plus an extra half cup for the pot).
   2. Add a teaspoon full of the ground Turkish coffee per cup in the water. According to the requested taste (sweet, medium or without sugar), you can add sugar.
   3. Heat the pot as slowly as you can. For better taste it’s important to keep the heat slower. Also make sure to prevent overflowing when the water boils.
   4. When the water boils, pour some of the coffee equally between the cups, filling each cup about a quarter to a third of the way. This way you will be able to serve your coffee with a fair share of the foam forming on top of the pot. The foam on Turkish coffee is very important and it is made as the brew sits on the stove without being stirred.
   5. Continue heating until coffee boils again and pour the rest of the coffee between the cups. 
If you are not making your own Turkish coffee It can either be served as sade (without sugar), az sekerli (a little sugar), orta (medium sugar) or sekerli (sweet).
After drinking Turkish coffee, there’s another tradition waiting for the ones who like fortune reading. This tradition of reading someone’s future from the coffee grounds is called “fal” and very popular in Turkey. Thanks Umut.



  2. Hey the price of my Coffee just went up? But they said there was no inflation.........

  3. Kli,

    I'm still liking the gray mare right now, I have begun the great scale in as Silver looks and is set to rocket over next 6 months...

    1. yes sir.....just a question of which week

    2. Ag has been looking rather weak the past couple of days when the equities markets have done well and the USD has weakened. The way it's been trading lately, I'm not sold on silver in the short term.

      FWIW, Maund is expecting a big drop in the markets, including PMs. On Sunday, he said we'd get a bounce and then a big drop. We got the bounce...

  4. hello all...anonther BS squeeze based on lies..hehehe. Already retracted by both sides Spain not askin' Germany not givin'.

    1453 is important. above and risk will be really on.

    Jessie Cafe has good discussion on staglation.

    All smoke and mirrors folks.

  5. Dont need Jessie for a good discussion on Stagflation! We be LIVING in it!

    Just ask the retirees that got that STOUT 1.5% COLA increase.....

  6. Looks like all good news today and the market is rallying.
    Oh,...and the debate is tonight too.

  7. the only news we need to pay attention to is when the physical buyers of gold turn the naked shorts of JPM.....and its getting close

  8. my sister lived next door to some Christian Iranians that immigrated here after the fall of the Shah....Really nice family, brother worked for post office, sister worked in computer industry. Mom and Dad at home...The daughter had the greenest eyes I have ever seen, the son the bluest....Anyways, they made Turkish coffee and invited me over a couple times. Great coffee, with tons of caffeine..had my cup read each time..enjoyed it immensely...culture learning lesson...