Dr Larry Brilliant

Historic Heath Care Legislation Passes

Whatever side your on this was HISTORIC. Congressman’s Alan Grayson’s HR 4789 (public option) was far preferable to what passed.  The NYT editorial here. An obvious political win for Democrats. If I were a Democrat congressman I would be sending out to seniors why AARP’s endorsed the bill and explaining what closing the doughnut hole in medicare coverage means. The vast amounts of hyperbole and rhetoric on both sides is obviously exaggerations.

For the shorter term impact on stocks – see Fearless Forecast and Positions sections below

“America’s Real Dream Team”

Some times Tom Friedman hits a grand slam – This editorial is one. Can you guess his “Dream Team” and why despite all the political partisanship they give us hope for the future?

How African Poverty Affects YOU

Because of the poverty in Africa (most scientist attribute a major factor – drought brought on by climate change) Africans have started to eat more meat (from monkey’s to lions) because crops have failed. This over the last few decades has led to 30+ communicable diseases transferred from animals to people and spread world wide. This arguement is often used by Epidemiologist Dr. Larry Brilliant who is the forefront of pandemic research. One of his TED award lectures.

Many of  these horrific diseases have reached our shores. If anyone dares mention how useless the UN is you tell them the impact it has had eliminating communicable diseases that affect billions around the world. (see above link)  Also when someone tell you we should cut aid to Africa or poverty does NOT impact you remember where and how AIDS & Ebola began.

KISS & Stocks (Keep It Simple Stupid)

If you don’t understand a term look in up at Investopedia.com dictionary


Index Percentage Volume
Dow -0.35% up
NASDQ -0.71% up
S&P 500 -0.51% up
Russell 2000 -1.13% -

Investors411 record – 5 years of beating benchmark S&P 500 and almost all major US indexes

Technicals, Fundamentals & Analysis

See PositionsStrategy , and Overview for changes made over weekend. (No changes this weekend)

Friday markets were down in significantly higher volume.  Some of this volume is due to quadruple witching/options expiring on Friday and some of this was due to momentum growing for passage of health care.

Over the last 4 months Monday’s have usually been very good for stocks.  However those or you who have followed Investors411 for a long time know sometime technicals rule and sometimes fundamentals. (see Fearless Forecast below)

Fearless Forecast for  Last Week“up week” – All US major indexes moved higher. We lost about 1/4 to 1/3 of those gains on Friday.

Fearless Forecast for  This Week“down week” – Health Care reform was dead and Obama/Pelosi brought it back to life. Even though Democrat Senator Chris Dodd has a very weak bill to reform shadow financing and increase transparency, Wall Street will probably be spooked by the passage of health care. Investors will reason that more rules will get put into the financial system by Obama/Pelosi and the financial sector will lead stocks lower. Like health care, financial reform of “greed based capitalism” may return to life.

Short term expect stocks to get hit.

Significant Indexes

  • McClellan Oscillator fell again significantly to -1.26 yesterday. +60 or above = Overbought -60 or below = oversold. StockCharts has a better version of the McClellan chart ($NYMO) LINK. – Investors411 manta is its much better/safer to buy when stocks are over sold and sell when they are over bought


The  Positions Section = latest buys and sells – (Revised positions last weekend) - These are positions I actually own

Let’s let the dust settle – (see this week’s fearless forecast)  However, outside financial stocks, an oversold buying opportunity should present itself.  Also expect high beta - lots of the stocks on YOUR watch list – to take a hit.

If stocks do not take a hit Monday, on worries over potentially more stringent rules in financial sector, we have one strong bull market and get on the train.

Paul R -(see comments on right side of blog) has mentioned that Health Care stocks have already rallied into this weekends vote. They might “sell the news,” but in the long term heath care stocks like Express Scripts (ESRX will be on YOUR watch list tomorrow) should really benefit from the Obama/Pelosi vote.

Short term traders – ESRX will probably go elliptical over the next two days. Jump in early or buy the dip.

Health Care, Hospitals and Drug stocks should see their stocks soar. They were just handed 32 million new customers.



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