The SEC makes it clear....we are going to pay more, here's our strategy

Today I read a news article from our trading partner Doc Severson at Trading Concepts about a proposed Securities and Exchange Commission rule that could boost trading costs.

Here’s the deal:

Due to market instability, the SEC wants to require all trading venues – exchanges, automated trading systems and dark pools – to submit alternative plans for operations in case of a system breakdown. In its proposal, the SEC said estimated initial costs could be as high $242 million, with another $191 million in annual costs.

So, if approved, who will these added fees eventually fall on?

Yep, you guessed it . You and I ... the traders.

Remember how Doc Severson’s first training video  showed you what government involvement is doing to the market? 

Well, as you can see, more regulations just keep lining up. Just about every big player in the trading world has been affected. Again, if you’re using strategies that worked in the past and now aren’t seeing the profits you want, your lack of success isn’t all your fault. You simply need to adjust your approach to accommodate today’s market.

Try Doc’s Fractal Energy Trading for Weekly Options program for the next 30 days.

Believe me, you’ll be happy you did.

See you in the markets,

Ray C. Parrish

aka the Crude Oil Trader

Make sure to get our free eBook "Understanding Options"....Just Click Here!

Billionaire T. Boone Pickens’ Favorite Energy Stock

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By guest blogger Meena Krishnamsetty and our friends at Insider Monkey......

Billionaire T. Boone Pickens’ favorite energy stock is BP Plc (BP). This is the largest position in Pickens’ 13F portfolio which was disclosed to the SEC this afternoon. We think this is an excellent choice. The stock currently trades at $38 and yields 5%. This is a much better choice than long-term Treasuries.

Boone Pickens also like Encana and National Oilwell Varco. Pickens also disclosed a $11 million position in Chesapeake Energy (CHK).

Musings: How to Question Reserve Reports Without Any Knowledge

In what now seems like the distant past, The New York Times wrote a series of articles suggesting that industry practitioners were raising questions about the economic performance of the gas shale wells and thus whether the extent of the resource was over stated. Those articles were written in late June and generated a firestorm of reaction within the natural gas industry, but also among Washington politicians.

What followed was disclosure that a handful of E&P companies, active in the gas shale business, had received subpoenas from the Securities and Exchange Commission (SEC) for their records of well performance and the economics of behind their reserve calculations. The data was sought to compare with the companies' disclosure regulatory filings and investor presentations of the operational risks, production performance and economics of these gas shale wells.

At the time the subpoenas were disclosed, we wrote about it in the Musings (last July), fully anticipating that there would be further disclosures. Since mid-summer, there has been no activity arising from the subpoenas.

What followed was disclosure that a handful of E&P companies, active in the gas shale business, had received subpoenas from the SEC for their records of well performance and the economics of behind their reserve calculations.

Our interest was piqued recently when we received a newsletter from an energy investment group we belong to that contained an employment ad for a petroleum engineer position with the SEC in Washington.....Read the entire Musings From The Oil Patch Article.


Check out "How to Trade Gold and Oil Prices This Week"