File:Burlington Coat Factory Park Place NYC 009-010 Stitch.JPG

45 Park Place NYC – Former Coat Store

Burlington Coat Store

It seems American media has one again spun, hyped, fear mongered & distorted facts to create a monster controversy. Building a Moslem Culture Center at the Burlington Coat Factory Store (45 Park Pace) building near the former Twin Towers has become Building a Mosque at Ground Zero or “Sacred Ground” (Newsweek Headline)

Now across the country this outrage has spread to protest building of ANY Mosque for the 6 to 10 million American Moslems.  This makes sense to the growing numbers of bigots in America. Why not, there are those that believe no Catholic Churches should be built because it is a religion of terrorist child molesting priests.

If winning the war against the lunatic jihadists who attacked us on 911 shown anything, it is that we must separate them from the moderate Moslems (the 6 to 10 million in the USA alone)  - almost all of whom are not Al Qaeda terrorists. Obama, General Petraeus and even George Bush realized this and developed appropriate strategies to divide the terrorists from the moderate Muslims.

Our American bigots want to lump all Moslem’s together Remember Neda heroic death protesting the brutal Iranian dictators?

Moslem’s/Neda did not attack us on 911. It was a group of vicious, fanatical, insane terrorists from al Quaeda. The answer to defeating these terrorist is NOT to devolve into the same kinds of beliefs and intolerance they and others like them have.  If we as American’s cave in to the bigots then Osama Been Forgotten has truly won.

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!

Index Percentage Volume
Dow -2.49% up
NASDQ -3.01% up
S&P 500 -2.82% up
Russell 2000 -4.02% -

Technicals, Fundamentals & Analysis

Investors411 record – 5 years of beating benchmark S&P 500

Mantra for the monthThe Black Box/High Frequency Traders BB/HFT control the majority of trades. Paul R in the comments section has found a great source describing the BB/HFT traders and consequences of what they do.

O.M.G. Another day in the world of BB/HFT trading.

Even though Investors411 stated yesterday “the bulls seem to be loosing control” – Cowabunga - what happened? Collectively the dollar opened up an unheard of +1.80% and stayed their. (You can follow this by using often mentioned dollar ETF – UUP) Didn’t see that dollar move coming.

Your average investors have flocked to low yield bonds and are huddled their under the table. Some braver investors have chosen high dividend stocks – They got burned yesterday, but they should be more successful than your average stock holders in the long run.

The reason for the massive selling in moderate/average volume - ???? – There was no news out there that didn’t seem already built into most investors consciousness.

  • The FED suggesting the US economy is shaky – We all know that.
  • China slowdown. This is a planned slowdown as their stimulus funds have run their course and their worried about overheating GDP.
  • Yes, there is a lot of vacant buildings in China and a housing bubble building, but there is also 10′s of millions of new members to China’s middle class each year.


Significant Indexes

  • The Dollar (USD) had a OMG rally yesterday. [Anything over +/- 0.50 is significant] USD up a massive +1.84%. Don’t ever remember such a huge move. For stocks = Bearish
  • The Baltic Dry Index (BDI) [measures cost of world trade/proxie for China & emerging markets] kept starting to go parabolic (+7.50% yesterday) Prices starting to go parabolic are a Danger sign but still = Bullish
  • McClellan Index – (MO) [Basically longer term  - the rough guideline is over +60 = overbought market = sell or short stocks & -60 = oversold market = buy stocks.] MO fell to -32.95 Approaching oversold,but still = Neutral

Reading Tea Leaves

Welcome to the world of BB/HFT trading/investing - Jsovajani in his last comment states right now  ”the most important concept is capital preservation” and many of you bemoan the fact that Investors411 has not plunged into stocks this year like it has in the past. = capital preservation.

The good news – Our +/- 60 level on the MO has clearly become a fairly decent forecasting toll of when the BB/HFT will turn (see chart). Investors411 is going to stay and expand on this strategy. But we all need to have patience (including me) till the time is right to invest and to realize that its probably NOT going to be a long term investment, but one that lasts a couple months, weeks or days.

Positions

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

Current positions – NONE

  • EWZ (Brazil – Now 0% of portfolio position) Bought at 69.80. Sold last 1/2 at 69.03 for -1% loss First 1/2 sold at +2% profit.

From yesterday – “The Bulls seem to be loosing control.” They lost it.Perhaps the MO will drop low enough to consider buying again.” At -33 on the MO we are approaching the -60 oversold level

Long Term Outlook – NEUTRAL

AS ALWAYS, DO YOUR OWN RESEARCH BEFORE INVESTING!

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