“Hopeless,

But Not Serious”


Who Owns

Cartoon by Pete Steiner LINK


The head Republican of the Deficit Super Committee  Senator Jon Kyle called Grover Norquist “the 13th negotiator.” Why?

“The lobbyist, who runs Americans for Tax Reform, has a tight hold on the Republican party, having secured written pledges from almost all its members of Congress that they will not vote for a single tax rise.” LINK

Norquist, after the vote promptly “proclaimed victory

All six Republican members of the deficit super committee have signed Norquist’s pledge.  All the Republican Presidential candidates have signed the pledge.

Across Europe governments have agreed to both raise taxes and cut spending to balance budgets. Democrats here have sought some relatively minor tax hikes from the wealthiest Americans who have prospered over the last three decades while middle class growth has stagnated.

Norquist says NO



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$75,000,000,000,000

$75 Trillion


This is How the amount of  debt from financial WMD’s (Derivatives or Credit Default Swaps) that now sits in a US government FDIC Insured Account.

“Bank Of America Dumps $75 Trillion In Derivatives On U.S. Taxpayers With Federal Approval”

Seeking Alpha’s – Avery Goodman editorial LINKOriginal Bloomberg News Source

Contrary to popular [Republican] belief, which blames the global financial crisis on subprime borrowers, it was the derivatives, based upon the likelihood that those borrowers would pay their debts, that were the primary catalyst triggering the global economic crisis of 2008.”

The real debt of our broken financial system from the 2008 meltdown and now the Euro crisis lies in opaque “free market” derivatives market.

Many Thanks to Robert H for the heads up on this.


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STOCKS

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The Stock Market Skater STILL on Thin Ice/Shark Below

Welcome to Black Friday. Christmas is supposed to be a religious holiday in celebration of the teachings of Jesus Christ. Instead its turned into the sanctification of shopping.

Wednesday was another significant fall again on European news.

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Germany’s DAX closed down @o.5% yesterday and today down -0.37 at 8:45 AM EST

So expect US stocks to fall between 0.5 & 1.o% at open

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Reading The Tea Leaves


Our #1 technical forecasting tool, the McCellan Oscillator fell to -106.62. 50DMA at +13.99 Bullish

While we did see a record -140 on the MO in August, a -107 with the 50 DMA at +14 means the market is very ripe, technically, for some sort of rebound.

Same Bottom Line - News from Europe can and will trump the technically bullish oversold US market.

Traders - Few are going to be willing to hold stocks over weekend on fear of more bad news. However another Dow 200+ point fall puts us in OMG oversold territory. You need a lot of guts, no financial earthquake in Europe & a better than expected black Friday would help, but you could see a rally Monday AM.

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Positions

Hopefully Longer term positions.

EUO (double short the Euro currency)   1/2 position Bought at 18.60 Friday, EUO closed yesterday at  18.72

Under consideration –

  • APPL (long) AMZN (short) hedge trade.
  • Any trade that shorts the market on a rally.
  • Focus sector to short – financials

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Longer Term Outlook

3+ months

From Wednesday – We’ve had two major down days in the last two weeks, both were confirmed by a flat or lower stock market the next day. Therefore the Long term outlook is in danger of a downgrade to CAUTIOUSLY BEARISH.

The horizon shows no fix to Euro debt problems. The stock pattern is European stocks drop and the US follows.

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CAUTIOUSLY BEARISH


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Investors411 has 5 different valuations - BULLISH, CAUTIOUSLY BULLISH, NEUTRAL, CAUTIOUSLY BEARISH, and BEARISH.

Everything written in BROWN is a repeat from a previous day(s)

AS ALWAYS, DO YOUR OWN RESEARCH BEFORE INVESTING

ALL TRADING INVOLVES RISK AND POTENTIAL LOSS OF PRINCIPLE

CHECK ALL DATA, I MAKE MORE THAN GRAMER ERRORS.

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