SunTrust or SonTrust!!! You make the Call. I call it a Straight Put!!!

My name is Richard James Allen.  I was born and raised in Durham, North Carolina.  After a year long religious debocle at Bob Jones University in Greenville, South Carolina, I transferred to North Carolina State University where I majored in Accounting and minored in Economics.

Upon Graduation from NCSU, I began my career as an Internal Auditor for Central Carolina Bank in Durham (Now Suntrust Bank (STI). I swiftly moved through the ranks of the Internal Audit Department until I became Manager of The Internal Audit Department. It was a Camelot Life. Managing was an art which I did not perfect. Neither in my professional nor personal life.

I felt as though I had though. Thus boredom reared it's ugly head. I began discussions with the Controller to become his understudy or Assitant Controller. During this time, I was also offered a position by the Director or The Asset/Liability Management as an Assistant. I opted for the path which would lead me to the CFO position and ultimately the CEO position.

During my employ at Central Carolina Bank, I was sent to Bank Administration Boot Camp for Eight summer sessions. A four year path for Auditing. Upon my entry into the Accounting Division, I was sent to The School For Bank Administration at The University of Wisconsin - Madison for Financial Management.

I did not however limit my studies to Financial Disciplines. I learned how to be a King by learning how to live the Life of a Servant. Both roles have been difficult challenges for me. I do carry knowledge and an abundant amount of it. Most importantly however, I carry a Heart of Love and Compassion.



            Now it is time for the Battle of The SON. Will it be SunTrust or SONTRUST!!!


When is an up day for the DOW, a bad day for the Market?  Is short, Big Money stays idle and neither buys nor sales.  The Trade Volume for  ^DJI yesterday was 221,692,899.  The Three Month Average Volume for ^DJI is 5,591,080,000. The Dow being up 273 points is not a Financial News story.  Most Financial News, Upgrades, Downgrades, Technical Signals, and Fundamentals are not worthwhile information when viewed in isolation.

You may do some very simple Math and arrive at the Beginning Signal of a Bullish/Bear Market.  Yesterdays volume for the ^DJI was approximately 4% of the Three Month Average.  Most of the volume traded is called 'Short Covering".  Every term that I use which you do not fully understand can be found and researched at http://investopedia.com/. Equity investors will oftern sell stock on a specific date in anticipation of the stock price plummeting.  Their strategy is not to buy and sell.  They are bearish on a stock, sector, industry segment, index, etf or a Broader Market. 

They are long term players who are now reading Technical Signals (Since they realize Fundamentals in this extraordinarily volatile market are meaningless.)  For example, they are following a Stock Like AAPL, CAT or ISRG, and while they have a long term vision of the continual rise in the stock price of these companies, they foresee a short term pending decline in the Broad Market which will most likely impact their stocks to the downside.  This is often referred to as "Retracement".

Yesterday, certain investors reacted inappropriately to a missed signal.   They puchased say AAPL stock at say $240.00 perhaps a week or so ago anticipating a pending Broad Market Retracement.  Since they had faith in the Apple, they said I am going to Sell 1000 hares of AAPL Stock @ 240.00.  Perhaps they own 10,000 shares of AAPL so they Short Sell 10%.

Most of these short sellers have identified a Stock Price for AAPL which they will Buy the Stock Back.  Remember, this strategy of Sell High and Buy Low is simply an approach to "Dollar Cost Average" your investment.  Let's say they see a Pending Pullback for AAPL's Stock Price to be $220.00.  Were this to occur, then the Investor would pick up a quick $20,000.00.

But wait, the stock market suddenly turns Bullish.  Perhaps they hear a potential ban on Short Selling from certain European Union Countries and they get nervous.  AAPL moves to $245.00.  What do the short sellers do.  They are nervous already, so they add two and two together and then they say, I have to run for cover.  What they sold @ $240.00 they now have to buy back @ $245.00.  Their intended gain of $20,000 is now a loss of $5,000.  If they have sold AAPL 'Naked", then their exposure is theoretically $240,000.

A 10 dollar move to the upside would cost them $10,000 etc.  As they move to Cover or Buyback the Stock they had sold, basic economics kick in.  As the price of AAPL increases, the demand for their stock increases and the Black Box, Flash Crash, Systematic Breaks, or The Wizard of OZ at the NYSE or OPRA, have no programmatic tools to halt a Bullish Move. 

Demand for AAPL stock is surpassing the Supply for AAPL stock so AAPL's stock price is driven to the upside by Sellers anticipating a Long Term maneauver they have simply lost faith in.  Thus you have a Bullish/Bear.  Short Sellers of Stock running for Cover.

                   MACROECONOMICS VS. MICROECONOMIC  (^DJI vs. STI (Suntrust Banks))

I have access to Investools although I have no equity or derivative position in them.  Most of the information that I provide here for my downgrade of SunTrust (STI) from underperform to sell are available on the Yahoo Finance page by simply typing STI as the Ticker. What I find when I ask for STI is what I call a Snapshot or current picture.

What does it tell me.  Well, it is a snapshot yes but sometimes a picture can be worth a Thousand Words.  The stack price of STI Common is $25.48 @ 12:47 EST.  That is down from yesterdays close by .35 or 1.36%.  Now if glance at the Day Chart and find very little information.  At this point the Trading Range for the Day is .80 which seems rather nebulous or difficult to interpret.  The 52 Week range however from a low of 14.50 - 32.02 suggests two things to me Volatility and Liquidity. 

The Volume however at this point for today suggests that the Daily Trade Volume may struggle to reach the Three Month Average Trading Volume.  Yhoo Provides an excellent mechanism to take this snapshot and expand it into a meaningful tool for further technical evaluation.  No one would consider trading STI by looking at their Fundamentals.  Their Earnings Per Share is (2.31).  Need I say more.

If we take a five day glance at SunTrust, we begin to see a picture evolve.  Yet, it is also a snapshot as you will see. The Graph itself may appear Bullish but the activity has occurred at the end of the day and is short covering previously spoken of.  The Upgade during the week by the Analyst just released from Rehab did give the stock a short term bump to the upside, but that is but a breath for a stock on Life Support.

As we move to the One Month Graph, we begin to gain momentum for a Bearish Play on STI.  I do have a Bearish Play for STI in June and July, however I own no stock in them and never intend to.  We see an acccident just waiting to happen if you are Bullish on STI.  The stock price has plummeted from it's 52 week high of 32 to it's closing price yesterday of 26.  That is a 25% decline in 30 days.  Now we have a story.

One could mistakenly glance at the Historical Price Patterns for the 1 Yr, 2 Yr and 5 Yr Graphs.  They may resemble a Wave III Elliott Wave Pattern but this assumption is simply not supported by any Fundamental or Technical Data.

Now I would like to switch to http://investools.com/.  Here we have further evidence to support my downgrade of STI (SunTrust).  The Current Stock Price is well below the 30 Day Moving Average.  The MACD (Look for it in http://investopedia.com/) tells me one thing. Volatility or Fear.  The Stochastics are not in concert with the Accumulation/Distribution Technical Signal and as such is not an indicator that STI Stock is Oversold.  In fact, the Accum/Dist suggest that trade volumes are increasing but these are short coverings and direct sales.

With Investools, I can access Institutional Money Flows from Industry Segments.  $BANKRG is a solid red for the last three months and suggests that prudent Institutional Money Managers are not sending funds in the direction of Regional Banks. 

Since we have switched courses from a Macro or Micro perspective, I can now divulge a small amount of additional information with respect to STI or SunTrust Banks.  I am looking at their Investools Graph now and I see some settled data.  I am very glad they finally caught up with the Market Data. Now, as of the close of Business on Friday, I see a closing Bid/Ask Spread of $2.26 on a $25.00 Stock.  That is very close to 10% and hard to ignore.  It is virtually unheard of.

Now I see Volume.  All of the sudden, the investors covering their shorts simply want to get the HELL out.  The Volume for Friday now stands at 8,166,367.  That compares to the Average Daily Volume of 5,028,584.  That is a 62% increase in the Trading Volume for STI.  Do you honestly think Bullish Buyers were tapping into a Support Level or Prudent Investors were getting while the getting was good.  In short, they were eliminating any remaining position in STI.

I will not mention Investools further.  They just sent me an email soliciting additional educational classes.  I just love an Economic Parasite.  However, I can still use their website to provide further substantive evidence in support of my Downgrade of STI from Underperform to SELL!!!. 

When I evaluate any company, I alway pay very close attention to Insider Trading Information.  Without taking to much of your time here:  These are the Board Members and Puppet Officers who own the Stock and the Stock Options.  You can go to Investools and obtain this information rather easily.  It is public information however via the SEC.  So spend your money with Investools or I will lead you to the SEC filings.

Any Insider must file a Transaction Report withing two days after a trade.  Failure to do so in a failure to comply with a current SEC ruling.  In the New Financial Reform Act Obama has up his sleeve, there may be no rules at all.  Actually there are no Financial Regulatory Rules already under the Obama Administration.

What I find in Investools however is this:  No and I mean absolutely no Insider has traded STI (Suntrust Bank Common Stock) since May 4th, 2010.  Would it really take a Mental Giant to connect those dots...  Francis Breeden who is an Executive Vice President of SunTrust.  (She married into Money or her Daddy left her Money) exercised her option to sell STI @ 29.15.  Smart move, Francis. STI will never see than price again.

Today is June 12th, 2010.  Now what does that say about the prospective future of STI, the Two Time TARP Recipient.  If you do not have enough evidence by now to support a Bearish Position on this Stock, what more could you possibly need?  If the Insiders halted all trading 40 days ago, then why would you throw good money after bad.  If you watched the special on CSNBC this weekend on the Downfall of Lehman Brothers you would know the precarious implications of a balance sheet with a substantial amount of Commercial Real Estate Exposure.

The goal of the Obama Administration and his TurboTax Treasury Secretary was to first annihilate the Big Boys, or Brokerage Houses, and Paulson was the vehicle or human instrument charged with the responsibility of carrying out that task.  He was successful in carrying out his mission.  Not quite sure he was promised a Mansion on The Hill, but I guarantee you that money was placed in his pocket.

Barry lost a very important Congressional Battle today with respect to sustaining his unemployment benefit's plan.  There will be no Third Tarp Fund for SunTrust.  At some point, the American Public decides to wake up and smell the Roses.  Barry can take us just so far down in his attempt to jump start his New World Order.  Yes, STI will fail, and while Barry may gather his Financial Goon's around the Czar Table to formulate a Face-Saving Financial Plan, the American Public has grown quite tired of his "Float like a Bee and Sting Like a Butterfly Ivy League Flotilla of Nothingness.

Now let us Blow Off Investools which is accurate in terms of Trade Volume and Friday's Trade Range for STI.  We have to return to the Generic Data on YHOO to drive home my valuation of STI from Underperform to SELL!!!.  Go directly to Yahoo Finance.  It is right in front of your face.  If I use YHOO Finance Only and look for Insider Transactions on the left hand side of the Bookmark, I find this:  I move to the left column and go directly to "Insider Transaction". 

At the top of the page, I see nothing but ambiguos and ambivolent data.  Yet as I scroll down what do I see. I see that Insiders are not holding any shares of STI.  But that is only a snippet of the pending doom.  I look at the Intelligent and Smart Institutional Investors who have seen the "Handwriting on the Wall" for STI.  It is Titled per YHOO as Net Institutional Purchases.  (Sounds like a Bullish Hint!!).  Well, actually not.  Please not two numbers in YHOO for Net Institutional Purchases. 

With SunTrust, the Institutional Investors are heading for cover.  In other words, they are getting out while the getting is acceptable.  The Institutional Trade volume is (27,172,400).  That is short for let's get the Hell Out.  The Percentage Change in Institutional Investors is (7.6%).  That is short for let's get the Hell Out. STI no longer has a Support Level.  They are on Life Support and Obama no longer has the Political Clout to bail them out.  Thus they are 'Completely Naked'...left hanging by a thread. 

Obama will throw them directly under the Bus.  They can not longer sustain his Political Life Support. 


Where do we go from here?  Do we act or react.  If you snooze here you lose.  There are a lot of American Citizens suffering from Obama's calculated onslaught of the American Economy in lieu of his New World Order.  Yes, he can execute orders to have a Gulf Oil Rig explode to expedite his Climate Exchange (OPRA).  Yes he can jump start his reparations agenda before it is due but it is not due Barry.

I know of JCB.  I know of Facebook.  I know of HCL.  I know of the Unofficial DMV Guide and I know much more than do you. I know Twitter Archives.  I have each and every one of them and I will reveal them as need be.  Now step aside Barry and let me tell you Michelle, Paul, and Sasha just how to bring a Political and Financial House down.

Why am I only seeing Call Options on STI for June Barry.  I know why!!!  You do not.  You are the Mouthpiece.  Read a Book once in a while.  I must which back to Investools, despite my reluctance to get the appropriate Put information.  Well Barry, I think per Investools that I can buy a June $24 Put for .20.  That means I could buy 10 Put Contract through http://tdameritrade.com/ for $200.00.  Now that is quite an investment for a formidable return.

I can check the Delta Number and determine exactly how much I could make on that $200.00 Investment buy next Friday which is by the way a Quadruple Witching Hour.  There is no way that I could lose.  There is no way that I will lose.  In fact, maybe I will see my gains on Monday substantiate an additional investment in a July 2010 $25.00 Put via http://tdameritrade.com/ .  Why should I look at the Deltal on this trade.  The Volatility or Vega Point has now taken control and my gain is exponential.

Just imagine what a $200.00 investment can do.

In the End was the Beginning!!! King James Chapter V

James 5 (New International Version)

Warning to Rich Oppressors

1 Now listen, you rich people, weep and wail because of the misery that is coming upon you. 


2 Your wealth has rotted, and moths have eaten your clothes.

3 Your gold and silver are corroded. Their corrosion will testify against you and eat your flesh like     fire.  You have hoarded wealth in the last days.

4 Look! The wages you failed to pay the workmen who mowed your fields are crying out against you.
 The cries of the harvesters have reached the ears of the Lord Almighty.

5 You have lived on earth in luxury and self-indulgence. You have fattened yourselves in the day of slaughter.

6 You have condemned and murdered innocent men, who were not opposing you.

Patience in Suffering

7 Be patient, then, brothers, until the Lord's coming. See how the farmer waits for the land to yield its valuable crop and how patient he is for the autumn and spring rains.

8 You too, be patient and stand firm, because the Lord's coming is near.

9 Don't grumble against each other, brothers, or you will be judged. The Judge is standing at the door!

10 Brothers, as an example of patience in the face of suffering, take the prophets who spoke in the name of the Lord.

11 As you know, we consider blessed those who have persevered. You have heard of Job's perseverance and have seen what the Lord finally brought about. The Lord is full of compassion and mercy.

12Above all, my brothers, do not swear—not by heaven or by earth or by anything else. Let your "Yes" be yes, and your "No," no, or you will be condemned.

The Prayer of Faith
13 Is any one of you in trouble? He should pray. Is anyone happy? Let him sing songs of praise.

14 Is any one of you sick? He should call the elders of the church to pray over him and anoint him with oil in the name of the Lord.

15 And the prayer offered in faith will make the sick person well; the Lord will raise him up. If he has sinned, he will be forgiven.

16 Therefore confess your sins to each other and pray for each other so that you may be healed. The prayer of a righteous man is powerful and effective.

17 Elijah was a man just like us. He prayed earnestly that it would not rain, and it did not rain on the land for three and a half years.

18 Again he prayed, and the heavens gave rain, and the earth produced its crops.

19 My brothers, if one of you should wander from the truth and someone should bring him back,

20 Remember this: Whoever turns a sinner from the error of his way will save him from death and cover over a multitude of sins.