Whist the Australian’s are trumpeting their efforts to use a 777 simulator to re-enact the fated MH370 last flight patterns. There is an investigative void into whom plunged the Malaysian Airline stock before the MH370 flight went missing. Only the Daily Reckoning as far as I know is onto this case, which makes them closer to solving the mystery than the aviation authorities, whom don’t even wish to through awkward questions at the air traffic controllers or Malaysia’s military.
From the Daily Reckoning:
“If you a happened to catch the March 22nd edition of the DR, you’ll know our colleague Phil brought an experienced and sceptical eye to the look of Malaysian Airline System before Flight 370 went missing. The stock broke lower before the plane disappeared. Phil’s reasoning: the market knew something was going to happen.
–Phil had seen that before: airline stocks that started going lower for no reason before the 9/11 terror attacks. Phil came to the same conclusion in 2001 as he did in 2014 based on the charts alone. Maybe this explains one of his trading rules: don’t buy anything that has to defy gravity.
–We bring it up because we now have confirmation that Phil was right in 2001, at least. Jim Rickards new book, The Death of Money, doesn’t leave any doubt about that. Rickards suggests Osama bin Laden knew by September 5, 2001 that the attacks on the US would occur six days later. That left four trading days. Here’s Rickards:
‘At least one channel was blinking red before 9/11, telling the world that disastrous events involving airlines were imminent. That channel was the pinnacle of the U.S. financial establishment – the New York Stock Exchange. As the terror clock ticked away, market signals rolled in like a tsunami. A normal ratio of bets that a stock will fall to bets it will rise is 1 to 1. On September 6 and 7, options bets that United Airlines stocks would fall outnumbered bets it would rise by 12 to 1.’
–Based on public knowledge at the time, such a ratio was inexplicable. Makes you want to check the stock price of your airline before you fly, right? After 9/11 Rickards became involved in a project to detect insider trading related to possible terror attacks. Here’s one small conclusion we took from that: there seems to be plenty of bog standard insider trading going on all the time. That brings to mind Bill Bonner’s memorable line: be as suspicious of public markets as you are of public toilets. “