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A project that I have been working on in recent years is Horizontal PnF Counting using Percent Scaling. The method has generated promising results. Here we look at two case studies that illustrate the techniques value. Using the ‘Percentage Chart Scaling’ Method in StockCharts.com Point & Figure charting platform produces a Log Scale PnF chart. The percent scale defaults to 1% but can be adjusted manually. The case study charts in this blog are 3% scale PnF Charts. It takes a 3% change in price to move to the next vertical grid column.

This method is useful for estimating the price objective potential of a dynamically growing financial instrument. The traditional rules for counting horizontal (range-bound) structures also applies to the log-scale method.

The first case study is the bull market run in the S&P 500 Index from 2010 to the Bull Market peak in 2021. Each of the Re-Accumulation pauses are counted and flagged for their price projection estimates. These Re-Accumulations can take a year or more to unfold and build a Cause for the next upward ascent. The counts are remarkably accurate and useful. Please take time to study each of them.

This charting method has been made possible by the introduction of computerization. This technique is a compounding function rather than a simple horizontal counting method used in traditional fixed scale PnF charting methodology. Therefore, each horizontal column in the range-bound structure represents a compounding event. An example of a 10 column wide range-bound price structure represents 10 periods of say 3% growth in the subsequent upward trend. Thus 10 periods of growth at 3% results in a compounded appreciation of 33.1% which would be the price target for the advance.

The benefit of this PnF method is the capability of estimating the compounded growth of a dynamically advancing investment. As is the case with traditional PnF Method the time duration of the move remains an unknown. It is best to employ log-scale for dramatically rising and volatile instruments. For smaller ‘Swing Trading’ structures arithmetic scaling is most effective. Fellow Wyckoffian Alessio Rutigliano has used log scaling PnF very effectively in the analysis of the Crypto Markets. Alessio’s analytical work on Crypto Markets can be seen and studied at WyckoffAnalytics.com.

S&P 500 Index ($SPX) Point & Figure Case Study. 3% Scaling, 1-Box Reversal Method.

This log-scale horizontal PnF study of the S&P 500 Index spans more than a decade. The bull run from 2010 to 2021 had four well defined ‘Re-Accumulation’ periods. Each of these structures identified price targets that were eventually achieved. The final upward leg of the Bull Market was dramatic in its persistency and was preceded by a long and volatile trading range. The horizontal PnF count was exceeded by only one box and was the conclusion of the bull market. The log scale of this chart study was in 3% increments, which is very aggressive scaling, and illustrates what a virile bull market this decade long period was. Consider that each upward chart entry (entered as an ‘X’ on the chart) was a 3% increase.

The final upward surge into the Bull Market peak was capped by an acceleration of the index into a Buying Climax. A throwover of the trend channel combined with a fulfillment of the PnF count objective sealed the fate of this aging, historic Bull Market run.

NVIDIA Corp. (NVDA) Point & Figure Case Study. 3% Scaling, 1-Box Reversal Method.

NVIDIA Corp. (NVDA) has become one of the “Magnificent 7′. The rally in 2022 and ’23 was preceded by a period of Accumulation. Across the Accumulation 39 columns were counted. One-Box reversal method is used. Thus 39 periods of 3% appreciation are estimated. From the low of the count area and from the count line two price objectives are generated and flagged. The price objectives are 350.25 to 457.00. Recently NVDA surged past the higher target zone. In a final upward run (usually considered climactic) the upper objective can be exceeded. If, in short order, the stock price reverses and falls below the higher objective back into the target zone we will consider the PnF count to be active and still valid. NVDA has shortening upward thrusts in the area of the $457.00 price objective. As of Friday, September 8th NVDA was back below the upper price objective, closing the week at $455.72. Sudden weakness to a support area would be further evidence that, at best, a new range-bound price structure is beginning. Which could become a fresh new Re-Accumulation or Distribution. Only time will tell, and we will watch closely.

Notes on Log Scale PnF Method

1.      Initially default to 1% Scaling. Then try 2% Scaling.

2.      Count Accumulation and Re-Accumulation structures as you would with arithmetic scale charts.

3.      Default to 1-box reversal charts. Avoid counting 3-box charts.

4.      Primarily use log-scale method for dynamically growing financial assets. Use arithmetic scale otherwise.

5.      Count very conservatively. Big counts will generate very big price objectives using log-scale.

6.      Use a financial calculator or Excel to calculate compounded growth for the price objectives.

7.      For Distribution and Re-Distribution default to arithmetic scale PnF charts to estimate price targets. Log scale will typically result in over-counting of downside objectives.

8.      Lots of practice will help you discern when arithmetic scale or log-scale is the best method.

All the Best,

Bruce

@rdwyckoff

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional. 

Announcement:

TSAA-SF Annual Conference

In-person in San Francisco. Livestreaming for dues paying members.

 

The TSAA-SF will be hosting our 2023 annual conference, in partnership with AAPTA, at Golden Gate University on Sep 16, 2023. 

 

Speakers include

Linda Raschke – Auction Theory versus the Theory of Reflexivity

Brett Villaume – Understanding Relative Strength

Bruce Fraser – Swing Trading Technique Using the Wyckoff Method

Ali Merchant – Power of trend lines and market outlook using major indices

Bob Schott – Technical Analysis for the Buy Side

Eoin Treacy – Waiting for Godot

Damon Pavlatos – Anticipating Market Action using Market Profile, Volume Analytics Strategies along with traditional charting analysis.

 

 

Cost: TSAA-SF members in-person: $150 (breakfast and lunch included), non-members: $400. Free livestreaming for TSAA-SF members. Join the TSAA-SF now for only $75/year.

 

For more information on the speakers and their topics and to register (Click Here):

https://www.tsaasf.org/event-5391152

 

 Power Charting TV:

Wyckoff Case Study: A Period of Distribution Featuring Nvidia! First of Three Parts. Special Guest: Roman Bogomazov

Description:

Master Wyckoffian Roman Bogomazov joins Bruce Fraser for an in-depth historical chart case study of Nvidia common stock. This is the first installment of a three-part Power Charting series devoted to analyzing Nvidia common stock. Each of the three episodes is evaluated using the Wyckoff Chart Reading Method in chronological order. This episode evaluates a period of Distribution. In conducting these case studies, the objective is to illustrate and develop in the viewer an appreciation of the nuance the Wyckoff Method offers in the understanding of the present position and likely future direction of a stock or index, using chart analysis, for the intention of more effectively campaigning that instrument at the best possible time.

In the previous technical note, the importance of the support level of 19250 was discussed; it was mentioned that if this level stands protected for Nifty, the Index can rebound and inch higher towards 19700+ levels. While trading along these lines, the markets enjoyed trending sessions throughout the week. It had a technical surge and widened its trading range as well. Against the range of 234.90 points seen in the week before this one, NIFTY moved in a larger 434.30 points range and also managed to close near its high point of the range. While continuing to trend all through the past five sessions, the headline index NIFTY closed with a net gain of 384.65 points (+1.98%) on a weekly basis. It may be noted that September has seen the index trading higher by 566.15 points as of now.

The markets are once again within a kissing distance of their all-time high of 19991; the only concerning factor that remains is the volatility. INDIAVIX is once again near its multi-month lows. However, the undercurrent in the markets remains strong. While PSU Banks were relatively outperforming the broader markets, we may also see Private Banks and Financial Services space playing catchup. However, the levels of 19990 remain a strong resistance area. Going by the present technical setup, Nifty has created a trading range between 19500-19990 for itself; this time, any surge beyond this point will result in a meaningful rally.

The coming week will see the levels of 19900 and 20200 acting as potential resistance points going by the options data. The support comes in at 19620 and 19500 levels.

The weekly MACD is in continuing buy mode; it is bullish and trades above the signal line. The widening of the Histogram this time shows an acceleration of momentum on the upside. The weekly RSI is 69.31; it remains neutral and does not show any divergence against the price. A large white candle that emerged shows the strength in the direction of the trend.

The pattern analysis shows an encouraging picture, especially after this week’s move. The pattern analysis of the weekly charts shows that NIFTY achieved a major breakout when it crossed above the previous high that existed near 18900 levels. Following this breakout, the index surged close to 1,000 points following which it suffered a retracement. It gave up over 75% of its breakout journey and was about to suffer a full throwback. However, it has bounced higher forming a higher bottom near 19250. Therefore, so long as 19250 stands protected in the near term, the primary uptrend will stay intact. Only a violation of the 19000-19250 zone will push the markets in an intermediate trend.

All in all, the markets are expected to largely trade with a positive bias; some consolidation though cannot be ruled out. The low point of the previous week, i.e., 19432, rounded off to 19400 should stay protected. We may also see some good sector rotation taking place. We will continue to see PSE, IT, Auto, Consumption, and the banking space making highly stock-specific moves. It is strongly recommended to continue to remain stock-specific in approach and also keep protecting profits at each higher level as VIX continues to remain a concern. Short may be avoided but protection of profits at higher levels is strongly advised over the coming week.

Sector Analysis for the coming week

In our look at Relative Rotation Graphs®, we compared various sectors against CNX500 (NIFTY 500 Index), which represents over 95% of the free float market cap of all the stocks listed.

Relative Rotation Graphs (RRG) analysis does not show any major change in the sectoral setup. Nifty Media, Metal, PSU Bank, Pharma, PSE, Energy, and Midcap 100 Indices are inside the leading quadrant. The Nifty Pharma Index is seen giving up on its relative momentum but overall, these groups are set to outperform the broader NIFTY 500 Index on relative terms.

Nifty Auto and Nifty Realty are inside the weakening quadrant. The infrastructure index is also inside the weakening quadrant but it is seen on the verge of crossing over again inside the leading quadrant.

The Nifty Consumption Index has rolled inside the lagging quadrant. Nifty Bank, Services Sector, Financial Services, and FMCG Indices are also inside the lagging quadrant. These groups are set to relatively underperform the broader markets.

Nifty Commodities and IT indices are inside the improving quadrant and are seen maintaining their relative momentum against the broader markets.

Important Note: RRG™ charts show the relative strength and momentum of a group of stocks. In the above Chart, they show relative performance against NIFTY500 Index (Broader Markets) and should not be used directly as buy or sell signals.  

Milan Vaishnav, CMT, MSTA

Consulting Technical Analyst

www.EquityResearch.asia | www.ChartWizard.ae

Two Republican members of the New Mexico State House of Representatives are calling for Gov. Michelle Lujan Grisham to be impeached after she temporarily suspended open and concealed carry across Albuquerque and the surrounding Bernalillo County for at least 30 days.

Grisham on Thursday said she needed to respond to recent gun-related deaths, which include an 11-year-old boy who was shot and killed while outside a minor league baseball stadium on Wednesday night.

The suspension of open and concealed carry was classified as an emergency public health order.

‘When New Mexicans are afraid to be in crowds, to take their kids to school, to leave a baseball game — when their very right to exist is threatened by the prospect of violence at every turn — something is very wrong,’ Lujan Grisham said in a statement.

Republican state Reps. Stefani Lord and John Block announced on Saturday they are calling for the governor to be impeached.

‘I am calling on counsel to begin the impeachment process against Governor Grisham,’ Lord said. ‘This is an abhorrent attempt at imposing a radical, progressive agenda on an unwilling populous. Rather than addressing crime at its core, Governor Grisham is restricting the rights of law-abiding gun owners. Even Grisham believes this emergency order won’t prohibit criminals from carrying or using weapons; a basic admission that this will only put New Mexicans in danger as they won’t be able to defend themselves from violent crime.’ 

Speaking with Fox News Digital, Lord said that Grisham is a ‘rogue governor.’

‘She put this emergency order together and it violates her oath. And she’s supposed to be protecting and defending the rights of New Mexico, she can’t just raise her hand one day and say, I promise to uphold this oath and promised to protect the people of New Mexico and the Constitution, and then just one day decide, oh, just kidding,’ Lord said.

Block told Fox News Digital that there ‘is no such thing as a state public health emergency exception to the U.S. Constitution.’

‘It is an absolutely flagrant attack on law-abiding citizens who she is targeting with this order, and she is trying to force litigation and waste more taxpayer dollars while doing it, because New Mexicans are the ones that are going to have to pay the legal bills on this, not her personally.’

The National Association for Gun Rights and Foster Haines, a resident of Albuquerque, announced on Saturday they filed a lawsuit against Grisham and New Mexico Secretary of Health Patrick Allen, arguing the emergency order is unconstitutional. They are asking for a temporary restraining order against the measure to be issued.

‘Gov. Luhan Grisham is throwing up a middle finger to the Constitution and the Supreme Court,’ said Dudley Brown, President of the National Association for Gun Rights.

‘Gov. Luhan Grisham is throwing up a middle finger to the Constitution and the Supreme Court’

Rep. Ted Lieu, D-Calif., weighed in on Grisham’s executive order, saying it’s unconstitutional.

‘I support gun safety laws. However, this order from the Governor of New Mexico violates the U.S. Constitution. No state in the union can suspend the federal Constitution. There is no such thing as a state public health emergency exception to the U.S. Constitution,’ Lieu said on X, formerly known as Twitter.

David Hogg, who advocates for stricter gun laws, said on X ‘I support gun safety but there is no such thing as a state public health emergency exception to the U.S. Constitution.’

Bernalillo County Sheriff John Allen said after the order was issued that he has concerns.

‘While I understand and appreciate the urgency, the temporary ban challenges the foundation of our constitution, which I swore an oath to uphold,’ Allen said. ‘I am wary of placing my deputies in positions that could lead to civil liability conflicts, as well as the potential risks posed by prohibiting law-abiding citizens from their constitutional right to self-defense.’

Fox News’ Landon Mion contributed to this report.

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Sen. Tim Scott was anything but the loudest voice at the first Republican presidential nomination debate, but that’s just fine with the conservative lawmaker from South Carolina.

‘The loudest voices too often say too little,’ Scott said in a Fox News interview this past week in what was a clear jab at some of his rivals for the GOP nomination.

Scott, a rising star in the GOP, has been spotlighting an uplifting conservative message as he seeks his party’s presidential nomination. And because he mostly avoided the numerous verbal fistfights at the first debate on Aug. 23, he rarely enjoyed the glare of the primetime spotlight.

The senator — who didn’t target his fellow candidates and wasn’t targeted by any of them — grabbed far less speaking time than most of his onstage rivals and appeared to fade into the background amid the jousting.

Scott repeatedly said the past two weeks that he was the ‘adult in the room’ at the first showdown and that the crossfire between the other candidates on the stage only helps the Democrats and the media.

Scott insists that ‘having an optimistic, positive message, I think is necessary not only for us to be successful in a primary but for us to be successful in the general election.’

And Scott — who was interviewed by Fox News after headlining a ‘No BS Backyard BBQ’ series event in Rye, New Hampshire, hosted by former GOP Sen. Scott Brown — emphasized that in order to win the White House ‘we’re going to have a conservative who’s optimistic, positive, anchored in conservatism, that has a backbone. That is the recipe to persuade not only our base but also independents to join the team and save the nation from the road to socialism.’

At an event in New Hampshire — which holds the first primary and second overall contest in the Republican presidential nominating calendar — right after the first debate, Scott acknowledged that ‘following the rules does not give you more time.’

‘So, lesson learned,’ he added.

But looking ahead to the next debate, a FOX Business-hosted showdown on Sept. 27 at the Ronald Reagan Presidential Library in Simi Valley, California, the senator said, ‘I’m going to remember that lesson, but I’m also going to comport myself in the same fashion.’

And in a Fox News Channel interview on Wednesday, Scott reiterated that substance will drive his debate performance: ‘I’ll provide the American people with an adult in the room.’

It’s the same message from his campaign, which tells Fox News their candidate’s staying the course.

But plenty of pundits and strategists say Scott missed out on a breakout moment at the first showdown and wasted an opportunity.

‘I was very disappointed in his performance,’ longtime New Hampshire-based Republican consultant Mike Dennehy told Fox News.

Dennehy, a veteran of multiple GOP presidential campaigns who remains neutral this cycle, said, ‘[T]o me, it’s not that he didn’t attack anyone. He just wasn’t engaging and forceful. He had what appeared to be rehearsed platitudes.’

‘I absolutely appreciate Scott being the happy conservative warrior. I think that’s important in this race,’ Dennehy said. ‘He has one of the best images of all the candidates.’

But he argued that ‘Tim Scott needs more than just being the happy conservative warrior. He’s stuck. He’s running in place and in neutral right now.’

While Scott crisscrosses the early voting states in the weeks between the two debates, he enjoys a campaign war-chest advantage over many of his rivals.

As Fox News reported last month, his campaign’s shelling out $8 million to run ads in the early voting states, with a Scott-aligned super PAC dishing out $40 million to run spots.

Sources in Scott’s political orbit tout that the senator ‘has the message and the resources to stay competitive’ in the months leading up to the start of the presidential nominating calendar.

Get the latest updates from the 2024 campaign trail, exclusive interviews and more at our Fox News Digital election hub.

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Members of the United Auto Workers may be out on strike in less than a week if the union doesn’t reach an agreement on a new contract with Ford, General Motors and Chrysler-maker Stellantis by end of day Sept. 14.

The consulting firm Anderson Economic Group, which specializes in the automotive industry, estimated in August that if the entire union of more than 140,000 workers went on strike for 10 days, it would cost the U.S. economy $5 billion, or roughly half a billion dollars per day.

That number is reflective of the American automotive industry’s heft in the economy — not just in terms of manufacturing but also in supply chain and research and development.

However, it’s not yet certain that the entire UAW would go on strike if no new contract is agreed upon with Detroit’s big three automakers. One tactic discussed in a recent story by the auto industry trade publication Automotive News would see only a smaller number of workers walk off the job. The goal would be to stop production at certain UAW factories, such as locations where Ford workers build engines and transmissions for the popular F-150 pickup truck and other models.

Ford Motor Company did not immediately respond to a request for comment.

Erik Gordon, a professor at the Ross School of Business at the University of Michigan, said that concept, if the union chooses to pursue some form of it, “is intended to create an asymmetry in damages.”

“You are closing down production of its biggest selling, probably its most profitable product” in the F-150, Gordon said of the potential tactic, adding that the duration of a work stoppage will determine how much damage it would cause.

The UAW has enough money in its strike fund to give strike pay to every member for 11 weeks, Gordon says. That would limit how long its members can remain off the job. But a more targeted action such as the one that focuses on Ford’s popular pickup truck could be sustained for longer and at less cost to the union, as workers who aren’t on strike but are laid off might be able to receive unemployment payments instead of strike pay. (The precise details would depend on state unemployment eligibility rules.)

“Then you have a small amount of workers on strike benefits, but you have tied up production, you’ve halted production, all across the company,” Gordon said. “So the company is losing money from all of those vehicles that can’t be produced, but only a small number of UAW are on strike.”

That would obviously hurt Ford, but Gordon says there are risks in targeting the F-150 in particular.

“Pickup truck owners tend to be very loyal. You tend to be an F-150 person or a Silverado person or a Ram person,” he said, referring to competing trucks from GM and from Stellantis, the parent company of the Ram Trucks brand.

The work stoppage could also trigger higher prices in the new and used vehicle market. Shrinking inventories of new Ford F-150 trucks may lead to higher prices as demand rises. The cost of used models would also creep higher. And with the prime interest rate for a 60-month auto loan sitting at the highest point since 2006 according to historical Federal Reserve data, the higher vehicle prices would inevitably lead to more expensive monthly payments.

Erin McLaughlin, senior economist specializing in transportation and infrastructure for The Conference Board, a nonprofit think tank and business membership organization, said a strike would affect the U.S. economy in three different ways: Workers would lose pay, manufacturers would lose money and the broader auto industry of suppliers, dealers and retailers would lose sales.

While the Anderson Economic Group’s $5 billion estimate of the UAW strike’s potential impact on the U.S. economy is big, McLaughlin says it’s not enough to cause a recession. It also wouldn’t have the same complex, frustrating effects as some other recent strikes, like the West Coast dockworkers strike this summer or the threatened strikes by railroad workers in 2022 and UPS workers in 2023.

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FIRST ON FOX: Rep. Elissa Slotkin, a Democratic candidate in the closely watched 2024 U.S. Senate race in Michigan, has had a change of heart toward one of her Republican opponents who she previously praised and said she ‘would never’ run against.

‘It’s important Michiganders understand exactly who Mike Rogers is: He was on the Trump national security transition team, and was in talks to be Trump’s FBI Director, but then got fired. Then he became a critic of Trump,’ Slotkin said in a Wednesday fundraising email, just hours after former Republican Rep. Mike Rogers launched his campaign.

‘Regardless of his record on Trump, he’s a true conservative. He supports an extreme nationwide abortion ban with no exceptions for rape, incest, or common miscarriage; he voted to cut Social Security and Medicare; and, with an A rating from the NRA, he voted to *expand* access to guns. He represented a version of my current congressional district, 4 years before I flipped it – but with a different set of values,’ she added.

Her emailed statement ran in stark contrast to her previous praise of Rogers, including that she was ‘proud’ to have him representing her district. Slotkin previously served as a CIA officer and briefed Rogers while he served as chairman of the House Intelligence Committee, which he led until his retirement in 2015.

‘I remember being kind of proud that he was the congressman from back home, and Michigan, and had a very strong national security background,’ Slotkin told the Lansing City Pulse in June 2018 amid her first congressional run.

‘I tell people very openly that I would never be running in this race if Mike Rogers were the congressman because he had offices all over the district. He was engaging people. He had a strong presence on Capitol Hill that was bringing things back to the district. And that, to me, is the core thing. I don’t have to agree with everything he believed in to know that he was working hard for the district,’ she added.

On another occasion in July 2018, Slotkin praised Rogers as ‘different’ than his Republican successor, then-Rep. Mike Bishop, and lauded his maintaining an office in what she called the ‘populist’ part of Michigan’s 8th Congressional District.

Slotkin ultimately defeated Bishop in her 2018 race and represented Rogers’ former district until the state’s congressional map was redrawn following the 2020 census. She has represented the 7th Congressional District since.

When reached for comment, Rogers’ campaign was appreciative of Slotkin’s prior support. 

‘Mike Rogers is working hard to earn the support of every Michigander. We’re happy to hear the congresswoman agrees that Mike is the most qualified candidate for the U.S. Senate,’ campaign communications director Chris Gustafson said.

Slotkin’s campaign did not respond to Fox’s request for comment.

The race is expected to be one of the most closely watched of the 2024 election cycle, and will likely help determine which party ultimately controls the Senate. 

Get the latest updates from the 2024 campaign trail, exclusive interviews and more at our Fox News Digital election hub.

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Rep. Nancy Pelosi told a reporter Friday that she’s mainly running for office to raise money for herself and other Democrats.

Speaking with outlet Politico, the 83-year-old representative from California said her veteran status in Congress is a major asset for raising funds.

‘My focus is the House and presidency; you’re in a stronger position as a candidate,’ Pelosi told Politico in the interview. ‘You may not know this, but if you’re not a candidate, you really can’t raise money for yourself. And raising money for myself enables me to spend that on other people.’

‘For the House Democrats, though, I needed to be able to still raise significant money for them as a candidate,’ she added.

Pelosi declared her candidacy for her state’s 11th Congressional District representing San Francisco in a post on X, the platform formerly known as Twitter. It would be her 20th term in the House of Representatives.

She told the outlet Friday that she has been invigorated by the 2024 election cycle and prospect of taking back the House — and perhaps defeating former President Donald Trump, whom she would not address by name.

‘I feel so excited about the prospect of engaging people in this, I don’t want to use the word ‘fight,’ but this decision for our country,’ she said. ‘I feel I have a leverage, an influence, it’s not power — you know, I had power as speaker — it’s influence and that I shouldn’t underutilize it.’

Pelosi said her decision to run again for office has the full support of her husband.

‘I wouldn’t be doing it if he were objecting,’ she said. ‘He’s apolitical, but he knows what is at stake.’

First elected to Congress in 1987, the Democratic leader made history becoming the first female speaker in 2007, and in 2019 she regained the speaker’s gavel.

Pelosi stepped down from serving as leader of the House Democratic Caucus last year, passing the torch to current House Minority Leader Hakeem Jeffries, D-N.Y. She now serves among the rank-and-file, though Democratic lawmakers have dubbed her as ‘Speaker Emerita’ out of respect for her more-than-35-year tenure in the House.

Her announcement puts to rest any suggestion of retirement, though it comes amid concerns over the advanced age of numerous elected officials, including octogenarian Senate Majority Leader Mitch McConnell, R-Ky., 90-year-old Sen. Dianne Feinstein, D-Calif., and President Biden, who is 80.

Fox News Digital’s Chris Pandolfo contributed to this report.

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Justice Samuel Alito on Friday flatly rejected demands from Senate Democrats that he recuse himself from an upcoming Supreme Court case, calling their argument invalid. 

In an August 3 letter, Democrats led by Sen. Dick Durbin, D-Ill., urged Chief Justice John Roberts to ‘take appropriate steps’ to ensure that Alito recuse himself from Moore v. United States. The demand was made because Alito had sat down for a Wall Street Journal interview with opinion journalist David B. Rivkin, a practicing attorney who is a lawyer in the case. 

‘This argument is unsound,’ Alito wrote in an unusual statement added to a list of Supreme Court orders. ‘There is no valid reason for my recusal in this case.’ 

Democrats on the Senate Judiciary Committee have been highly critical of Alito and the rest of the court for failing to adopt an ethics code, following reports of undisclosed paid trips taken by Justice Clarence Thomas and, on one occasion, by Alito. The committee approved an ethics code for the court on a party-line vote, though it is unlikely to become law.

In the August letter, Judiciary Committee Democrats called for Alito to be recused from a tax case that will be heard this fall. 

Lawmakers complained that Alito himself had cast doubt on his ability to judge the case fairly because he had sat for four hours of Wall Street Journal opinion page interviews with an editor at the newspaper and David Rivkin, one of the lawyers for the couple suing over a tax bill. Rivkin also represents Leonard Leo, the onetime leader of the conservative legal group The Federalist Society, in his dealings with the Senate Democrats, who want details of Leo’s involvement with the justices. Leo helped to arrange a private trip that Alito took to Alaska in 2008.

In one of the two articles produced from the interview, Alito said that Congress has no ‘authority’ to regulate the Supreme Court. 

‘I know this is a controversial view, but I’m willing to say it. No provision in the Constitution gives them the authority to regulate the Supreme Court—period,’ Alito said. 

In a statement, Durbin accused Alito of eroding public trust in the Supreme Court. 

‘Justice Alito, of the originalist school of thinking that empty seats on an airplane don’t count as gifts, surprises no one by sitting on a case involving a lawyer who honored him with a puff piece in the Wall Street Journal. Why do these Justices continue to take a wrecking ball to the reputation of the highest court in the land?’ Durbin said. 

‘The Court is in a crisis of its own making, and Justice Alito and the rest of the Court should be doing everything in their power to regain public trust, not the opposite. This episode is further proof that Chief Justice Robert’s failure to act remains untenable, and Congress needs to pass the SCERT Act to create an enforceable code of conduct. Supreme Court Justices should be held to the highest ethical standards, not the lowest,’ he added. 

Alito, in his written response to Durbin’s request, had said that the Democrats’ theory ‘fundamentally misunderstands the circumstances under which Supreme Court Justices must work.’ 

‘We have no control over the attorneys whom parties select to represent them, and as a result, we are often presented with cases in which one of the attorneys has spoken favorably or unfavorably about our work or character. Similarly, we regularly receive briefs filed by or on behalf of Members of Congress who have either supported or opposed our confirmations, or who have made either favorable or unfavorable comments about us or our work,’ Alito wrote.

He continued: ‘We participate in cases in which one or more of the attorneys is a former law clerk, a former colleague, or an individual with whom we have long been acquainted. If we recused in such cases, we would regularly have less than a full bench, and the Court’s work would be substantially disrupted and distorted.’ 

‘In all the instance mentioned above, we are required to put favorable or unfavorable comments and any personal connections with an attorney out of our minds and judge the case based solely on the law and facts. And that is what we do,’ he concluded. 

‘For these reasons, there is no sound reason for my recusal in this case, and in accordance with the duty to sit, I decline to recuse.’  

The Associated Press contributed to this report.

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The full Senate is expected to vote on President Joe Biden’s nominee for the number-two spot at the Department of Veterans Affairs, shortly after the completion of a scathing review that shows a VA recordkeeping system that she oversees risks exposing sensitive personal information on veterans and agency employees. 

Last month, the Senate Veterans Affairs Committee advanced the nomination of Tanya Bradsher, current chief of staff to VA Secretary Denis McDonough, to be deputy secretary by a vote of 13-6. The Senate came back into session this week. 

In her current role, Bradsher has had authority over the VA Integrated Enterprise Workflow Solution Case and Correspondence Management, also known as the VIEWS CCM system, which a recent review conducted by the department’s Office of Information Technology determined had serious flaws — but was improving.

Peter C. Rizzo, a certified fraud examiner and former VA program manager, was one three VA whistleblowers who raised concerns about the system.

‘The president nominated this individual who was responsible for maintaining this system,’ Rizzo told Fox News Digital. ‘I certainly wouldn’t want someone of her caliber in the number-two spot at the VA. The VA and our nation’s veterans deserve better.’

Nevertheless, Senate Majority Leader Chuck Schumer, D-N.Y., scheduled a cloture vote on Bradsher for 5:30 p.m. on Monday.

Sen. Chuck Grassley, R-Iowa, issued a statement late Thursday explaining his opposition to the nomination that he has previously blocked.

‘If confirmed, Ms. Bradsher would be in charge of the VA’s effort to modernize veterans’ electronic health record,’ Grassley said. ‘This involves the healthcare records of millions of veterans, which obviously contain huge amounts of sensitive information. Ms. Bradsher’s failures on privacy issues as chief of staff and her lack of transparency to the Veterans Affairs Committee show that we can’t trust her to secure this sensitive information or to take the lead and address agency failures, of which VA has many.’ 

In August 2022, the Office of Special Counsel — an independent agency that investigates whistleblower disclosures — requested the VA investigate privacy concerns about the VIEWS system. The VA’s Office of Information Technology conducted the investigation and submitted its report in July of this year to the Office of Special Counsel. The report has not yet been made public, but the OSC is expected to issue the report at a later date. A VA spokesperson did not comment on the record for this story.

The more than 2,000 VA employees who have access to the VIEWS have the option of marking documents ‘sensitive’ or ‘not sensitive’ for veterans and employees. According to congressional sources, the VA internal review estimates that the number of ‘not sensitive’ records with personal information that should have been marked ‘sensitive’ were in the ‘multi-thousands.’ 

The department’s internal review says that VA employees with access to the VIEWS systems ‘can view, download, copy, screenshot, or otherwise share sensitive information – e.g., whistleblower and veteran social security numbers, dates of birth, home addresses and phone numbers and medical and financial information.’ 

The internal review determined that remediation measures in July 2023 ‘significantly reduced the accessibility of whistleblower identities and sensitive personal information.’

However, it also noted that ‘there is no program of auditing or detection in place to measure the effectiveness of applied changes, or to flag when a user views whistleblower identities and sensitive personal information without authority or fails to protect such information by not setting the appropriate case sensitivity marker.’ 

Bradsher wrote to Sen. Marsha Blackburn, R-Tenn., a member of the Senate Veterans Affairs Committee, in a May saying: ‘the VIEWS system has controls in place to protect personal and sensitive information . . . system access is logged. Audits also are done to make sure information on the VIEWS system is accessed appropriately.’ 

This answer clearly conflicts with the report’s assertion that no audit system is in place, Grassley said in a statement. 

‘The VA’s report further calls Ms. Bradsher’s candor into question. It seems to directly contradict Ms. Bradsher’s answers to questions for the record in her committee proceedings,’ Grassley said. ‘It looks like Ms. Bradsher has some explaining to do.’ 

The review stated: ‘Privacy issues with VIEWS CCM have been reported to VA officials responsible for VIEWS CCM by multiple persons and offices since 2019.’ However, in her written response to questions from Moran, Bradsher said she ‘first became aware there were concerns about the VIEWS systems shortly after certain VA employees approached the deputy chief of staff in July 2022.’

The internal VA report says that ‘there has been no effort to hold violators accountable.’  

The review further says department whistleblowers believe that ‘sharing of this information has resulted in the mistreatment by managers and co-workers.’ However, the review also says that ‘there is no evidence that VIEWS vulnerabilities discussed in this report resulted in a privacy breach or have caused harm to veterans, whistleblowers, or their families.’ 

But Rizzo contends that the privacy breach from VIEWS facilitated the attempt to silence department whistleblowers. Last year, he notified colleague Kristen Ruell, a 15-year veteran of the VA, that her information could be found in the VIEWS system. Ruell has been a whistleblower in cases of duplicate payments, exposing improper shredding of mail and reported improper treatment of employees. 

VIEWS showed her whistleblower communications to members of Congress, the VA Office of Inspector General and other VA officials. She also noted that her Social Security number, date of birth and other sensitive and personal information had been published in VIEWS and marked not sensitive, so that other VA employees could access the information.

‘When I whistleblew in the past, I always thought it was strange that the people I reported found out that I reported them within hours,’ Ruell said. ‘One person actually contacted me and asked why I reported them. Now it all makes sense. The emails that I sent are still in VIEWS and as of the date of the report still viewable to any VIEWS user.’ 

Bradsher was a 20-year Army veteran and has been a public affairs official for the White House National Security Council, the Department of Defense and the Department of Homeland Security. 

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The Democrat candidate in one of the most closely watched state legislature races in Virginia said earlier this year that ‘unqualified’ White people are able to secure high-paying jobs while Black people need ‘a Ph.D.’ to be considered for the same type of job.

Nadarius Clark, a political activist and former member of the Virginia House of Delegates who hopes to win another term made the claim during an April 17, 2021, episode of his former podcast, ‘Polititalk,’ when he and a guest co-host were discussing what they said was the unfair treatment of Black people by the police.

‘I refuse to have to teach my kids how to be a perfect person when that doesn’t exist. It is ridiculous that we have to dot our i’s and cross our t’s just to have a regular job,’ Clark said during the podcast.

Get the latest updates from the 2024 campaign trail, exclusive interviews and more at our Fox News Digital election hub.

‘Our counterparts, a Caucasian, can be mediocre and still get a $100,000 job. We have to be — we’ve got to have a doctorate degree, a Ph.D., to get let in those doors. We have to be overqualified … to get half of what an unqualified Caucasian would get,’ he added.

He went on to call for society to have a ‘change in social norms.’ His guest co-host, Stephannie Malone, agreed but offered an inaudible response.

Fox News Digital reached out to Clark for comment but did not immediately receive a response.

Clark was first elected in 2021 but resigned from his seat this year after moving to run for reelection in a new district, in accordance with Virginia law, following the House of Delegates district map being redrawn.

He now faces Republican and retired Navy Capt. Mike Dillender in the race for the 84th District, one in which both parties have poured considerable money and could ultimately decide which party controls the House of Delegates in the battleground state.

Dillender was one of 10 candidates endorsed by Republican Virginia Gov. Glenn Youngkin who won their primaries in June as the GOP hopes to hang onto, and grow, its narrow majority in the House of Delegates and win a majority in the state Senate.

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