Imam Feisal Rauf

Iman Rauf of NYC Islamic Center

Confirmation of 5% Doctrine

Last Friday Investors411 led with Gail Collins’ 5% Doctrine. The Islamophobic fear mongering that was started over the NYC Islamic Culture Center has spread. The Florida minister’s didn’t burn the Koran, But  two other Ministers actually burned Korans on 911 ( includes video) By in large the American media has kept this quiet. Others are attempting to do so.

The Iman, who has said the doors of his Islamic Center will have rooms for other religions to pray and will honor the 60 Moslems & other Americans who died on 9/11, said canceling building plans will have the same kind of negative impact the Koran burning would have had by the Florida pastor throughout the world. General Petraeus is 100% right in his call to protect the troops and NOT to burn Korans.

Bottom Line –  from Steve ClemonsDo Muslim Lives Matter?

Elizabeth Warren for CFPB

Another  editorial by MIT prof Simon Johnson on why Elizabeth Warren would be  great for the position as first head of Consumer Financial Protection Bureau.

Every time the Dems call/email me asking to contribute money. I reply when Warren gets appointed then call me. See the debate on contributing $ for the November elections in comments section of blog.

Quote For the Week

“The Jews have lived an existence that is much harder than ours. Nothing compares to the Holocaust.” Fidel Castro in criticizing Iran’s so called President Mahmoud Ahmadinejad. Odds by Intrade of an overt US or Israeli air strike on Iran – Bid 24.0% Ask 24.4% by end of next year

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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!

Index Percentage Volume
Dow +0.46% down
NASDQ +0.28% down
S&P +0.49% down
Russell 2000 +0.29% -

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Technicals, Fundamentals & Analysis

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

Mantra for September“The Black Box/High Frequency Traders BB/HFT control the majority of trades. Jim Cramer -”BB/HFT make up 80% of trades.”

Term of the Day – Double Dip Recession - From investopedia “When gross domestic product (GDP) growth slides back to negative after a quarter or two of positive growth. A double-dip recession refers to a recession followed by a short-lived recovery, followed by another recession.” This is perhaps the major worry on Wall Street and Main Street.

Rally with pathetic volume on Friday. Low volume rallies have been the reality for major US indexes for many many moons. BB/HFT’s dominate and the # of retail investors are diminishing. As explained in past Investors411, this forces anyone who wants to invest to look at US stock markets differently than in the past.

Example – Low volume rallies would send technical analysts jumping for the sidelines or out of stocks.  Now, they are a wave to ride until we reach oversold positions (see MO below)

What’s up for this week – “A Dash of Insight” (a pun – but you have to know about the author) on the week ahead by Jeff Miller OK so most of you will skip reading this, but if you want to have an understanding of the different types and health of trees in the investment forrest its well worth the read

High Dividend stocks – Investors411 has recommended High dividend stocks as an outperformed in troubled times because they have two potential streams of income for long term investors – Appreciation in price and potential dividend. Here’s an editorial on 5 potential high dividend stocks

Significant Indexes

  • The Dollar (USD) [Anything daily price move over +/- 0.50 is significant. Dollar moves inversely to stocks] The dollar, rose avery minor +0.01% higher Friday. Dollar in 4+ week long trading range. For stocks = Neutral
  • The Baltic Dry Index (BDI) [measures cost of world trade. Also proxy for China & emerging markets] Rose a very minor +0.23%yesterday.  The BDI does not have the immediate impact that the MO or Dollar does. It also often makes long slow moves in one direction (see chart for patterns)  Right now chart pattern = Bullish
  • McClellan Index – (MO) [The rough guideline is over +60 = overbought market = sell positions or short stocks, & -60 = oversold market = buy stocks.] MO rose to +43.43 yesterday. Clearly above zero and within 17 points of +60. So we are nearing overbought levels, but still= Neutral

Reading Tea Leaves

We slowly moving toward oversold territory, while the dollar is moving sideways. The trend is bullish,but when we get to overbought (@+60 on the MO) this trend should change.

Right now good news gets a favorable reaction from stocks.  The more overbought we get the less that same kind of good news matters. For right now the Bulls rule.

NB – I’ve been too cautious for long term investors over the past few months when we reached key turning points (+/- 60 on the MO and not invested enough or sold enough. There are some key negative fundamental factors in the Europe & The USA to be concerned about balanced by the continued dynamic growth of emerging markets. (more later this week)

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 positions –  EWS (Singapore)

Short term traders - From Friday – “There’s some wiggle room before overbought levels are reached, but its mighty narrow.” Looks like potential rally today may run us out of wiggle room.

If stocks to rally today and we reach or come close to +60 on the MO. Any further rally would be time to sell some of your long term positions.

Paul R has an excellent strategy for this he has mentioned in comments section of blog. Especially good for any traders when conditions get oversold – “tighten your stops.”

Long Term Outlook – NEUTRAL

AS ALWAYS, DO YOUR OWN RESEARCH BEFORE INVESTING!

DOUBLE CHECK ALL DATA, I MAKE MORE THAN GRAMMAR MISTAKES

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