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The puppet master is at work once again

Today's Financial News - Posted December 9, 2009

The puppet master is at work once againThe government is busy propping up the economy once again. Just when it looked like TARP was wrapping up, Geithner goes and extends it. That can’t be good.

By Andrew Snyder, TodaysFinancialNews.com

Baltimore – (TFN): It’s an exciting day on the markets. And it’s not just because one of TFN Strategic Trader’s plays is up by over 15%. It’s exciting because the government is meddling with the markets once again.

And that means somebody’s gonna get rich!

In case you missed the news, Tim Geithner told Congress this morning that he is extending TARP until October of next year. Yep, with just the stroke of the pen, this one, unelected man has the power to control some $700 billion worth of taxpayer money.

Aren’t emergency bailouts great?

The action means you can say so long to the dollar’s recent recovery. As I write, the greenback’s down against the euro and the yen.

There is good news, however. (I’m naturally assuming you feel more government control is bad news.)

There’s a handful of stocks making big gains today, and yes, one of them happens to be in the TFN Strategic Trader portfolio.

Let’s start with it.

We first entered a cover call position on RealNetworks (NASDAQ:RNWK) after I noticed a suspicions intra-day volume spike. Somebody wanted in and they wanted in bad.

A clue, Sherlock

We took advantage of the clue, waited until prices dropped and made our move. It’s paying off today.

Shares of the popular software provider are soaring after an upgrade from JP Morgan.

Thanks to a ruling yesterday in its arbitration with VeriSign, the ratings company lifted its stance from underweight to neutral.

JP Morgan “remains cautious” about the company’s outlook. Isn’t that interesting? It’s exactly why we entered a covered call instead of a full-on options play.

I wonder if the folks at JP Morgan are subscribers?

Next up, EF Johnson Technologies (NASDAQ:EFJI).  Remember how I said that government meddling means somebody’s going to get rich? Well, you don’t have to tell it to these shareholders.

Shares of the wireless communication provider are up by double-digit proportions today as the company announced the IRS has selected the company as one of its approved P25 radio contractors.

For a billion-dollar company, this would be just another day in the world of business. But for a $38 million penny stock, its news worth celebrating.

This is a company to watch over the next few months, to be sure.

As you know, I’m a big fan of the penny-stock market. There is risk, but so often, the reward is much, much greater. EF Johnson proved it today.

As much as I hate it when the government manipulates the markets, it’s hard to deny it has the power to make investors rich. Might as well join them.


Next Article: Sideways Trends – where gold is going now

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Posted by Andrew Snyder · Filed Under Featuring..., US Stocks and Markets 

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