Photo from al Jazeera

Watch the revolution LIVE at Al Jazeera LINK .  Sometimes  overwhelmed by internet traffic so a possible slow connection.. You Tube Page for al Jazeera is another link. By far the best coverage with the most sources. Al Jazeera is genuinely excited about democracy

Many thanks to Popeye and Jim J and others who have  a great job on bringing additional links, stories and their passionate views in their battle between the dictator and those that want democracy. See comments section of blog

So far no major violence and huge crowds in both Alexandria and Liberation square in Cairo. Similar or slightly less crowds than the “millions” on Tuesday.  Little sign of pro Mubarak goons today.

These demonstration are adding further burdens to Egypt’s economy. Foreigners including the UN flooded out of Egypt yesterday. Obviously, this is devastating Egypt’s economy. Perhaps the oligarch surrounding Mubarak realize how much money they are loosing and switched sides.

Watching Arabs on their own seeking democracy, freedom and bread from a dictator is unbelievable. We in the USA are brainwashed and fear mongered to think all Arab’s are evil, fundamentalists, members of al Quaeda or hate democracy. We learned differently in the Green Revolt in Iran and now in Egypt.

Bottom Line - The world doesn’t need the USA to force democracy on it through its military, the people of the world have a natural desire for freedom, justice and democracy. Its a brave new world emerging.

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KISS & Stocks (Keep It Simple Stupid)

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

AS ALWAYS, DO YOUR OWN RESEARCH BEFORE INVESTING!

DOUBLE CHECK ALL DATA, I MAKE MORE THAN GRAMMAR MISTAKES

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Index Percentage Volume
Dow +0.17% up
NASDQ +0.16% down
S&P 500 +0.24% up
Russell 2000 +0.31% -

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Technicals, Fundamentals & Analysis

Investors411 record - 6 years of beating benchmark S&P 500

  • Rally on as stocks move marginally higher in weak volume typical of the Fed POMO melt ups of the past year.
  • Monthly jobless number this AM+@145,000 is expected and rate or 9.5% Remember – Economically you want more jobs, but a worse than expected number is not bad for stocks because it means Fed POMO will continue or grow.
  • Mantra till it no longer works - still endorsing the concept that the Fed POMO [schedule] is and will be the key factor in keeping a long term rally going. (see past Investors411 for many, many moons on this topic).
  • Inflation is the other side of the The Fed’s liquidity and continued low interest rates. So who better to hear about today’s market than The Inflation Trader

Here’s the January numbers just published at 8:30 AM EST+36,000 jobs below expectations and rate is -9.0% Very hard to understand drop in rates with so few jobs created. December was revised up to +121,000 jobs from 103,000

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Significant Shorter Term Forecasting Indexes

  • The Dollar (USD) [Any daily price move over +/- 0.50 is significant. Dollar usually moves inversely to stocks] Dollar rose dramatically +0.76% yesterday. Big rally for dollar should have hurt stocks yesterday Longer term trend Two+ weeks of dramatic fall is  bearish for dollar,  and for stocks = Bullish
  • McClellan Index – (MO) [The very rough guideline is over +60 = overbought market = sell positions or short stocks, & -60 = oversold market = buy stocks.] Fell to to +14.81 Just above the middle of range. Equal up side and down side potential = Neutral

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Reading The Tea Leaves

I listened to three technical analysts in a row call for a 4 to 10% correction in February. But, this drum beat has been going on for months.

Technically because the rally is in REDUCED volume it is different than any year long rally I’ve ever seen.

Trim Tabs is reporting that investors are now, for the first time in years this January started to put funds back in mutual funds. This and the Fed POMO probably means dips will be bought. So if the supply of investors is increasing that’s bullish. This is simple supply and demand economics.

As I’ve warned many times, including yesterday, we are building a bubble. The bubble seems sustainable in the near term future and dips will get bought.

What to watch today

UUP – Again, The dollar tracking ETF. UUP in three week fall. The fact that the dollar rose significantly yesterday, yet US equities also inched higher in the short term is bullish. The three week tend is still down, but a few rally days could change all that.

The dollar is a contrarian indicator. Bad dollar = good stocks

AAPL –  The tech general again closing in on an  upside breakout.

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Positions

The  Positions Section link to latest & former buys and sells  - These are positions I actually own

(I do manage 6 accounts that have other positions).

Current ETF Positions. (oldest held positions listed first)(see comments section where all trades are first announced)

  • UWM (leveraged ETF 2x small cap stocks) Stop placed on what it was bought for and will sell 1/2 if 5+% gain
  • REMX
  • DBC

Investors411 #1 new area of investments is commodities.

Egypt is the spark – Oligarchies all over the world are going to have to better provide for their people and that means food and other COMMODITIES. The result is higher commodity prices.

A couple of you have made 5 % profits in REMX and sold 1/2. I thought my sell order was triggered yesterday, but it was not, I’m only at +4%.  Will sell 1/2 position at 5+% today if lucky.  Selling 1/2 at 5% profits is done for more volatile ETF’s

Will try to buy more commodity based ETF’s today – See comments section of blog for updates.

UCO -(2x oil prices)  On dip

REMX (Rare Earth ETF) –  Rare commodity used in everything from some TV’s to hybrid cars. Really believe this a good long term holding.

FAS (3x financials) & UYG (ETF that does 2x financials) XLF is the financial ETF.

DGP – (ETF is 2X gold) .

DBC – (Commodities ETF) For a more complete list of commodity ETF’s see this link

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Look for Paul R’s always enlightening remarks on stocks and sectors in the comments section of the blog. See POSITION section of blog for lists of potential stocks & ETF’s including “YOUR Stock List.” (YSL#4) which is under construction.

Longer Term Outlook - CAUTIOUSLY BULLISH

AS ALWAYS, DO YOUR OWN RESEARCH BEFORE INVESTING!

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