Investors 411 Blog

by Barr Jozwicki
April 18, 2012

A Photo and Spain

Author: Barr Jozwicki - Categories: Market Update - Tags: , , , , , , ,

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Investors411 is [Mostly]

Taking a Break Today

But…

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From Stock tips to political Debate

The Comment Section is Open and

.

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This photo taken yesterday at

Fenway Park in Boston and

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Tax Dodgers at Fenway Park

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View Full Size Photo HERE

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Spanish 10 Year Bond Rates

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The current #1 factor influencing US and world wide stock prices is how close Spanish Bonds prices are to 6.00%. This level has become a potent resistance level.

As of  7:21 EDT Spanish 10 years fell further to 5.80%. (Day/swing Traders – check out SB 10 year price if you want to trade on the expected poor opening – based on some less than stellar tech company earnings reports) There is some kind of major bond auction in Spain Thursday.

Longer Term – It must also be noted the the US 10 year bond is very low – This forces $ into stocks.

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Same Outlook as yesterday

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AS ALWAYS, DO YOUR OWN RESEARCH BEFORE INVESTING

ALL TRADING INVOLVES RISK AND POTENTIAL LOSS OF PRINCIPLE

CHECK ALL DATA, I MAKE MORE THAN GRAMMAR  ERRORS.

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April 17, 2012

Cheaters

Author: Barr Jozwicki - Categories: Market Update - Tags: , , , , , , , , , , , , , , , ,

Why fighting for

Openness, Accountability

and Honesty

is the Good Fight

Biggest business scandals of all time

..

Charles Ponzi

Corruption in Business

What Does It Cost?

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Very occasionally the crimes of the plutocracy become so transparent that despite all their lawyers and lobbyists they are caught

.

A Rouges Gallery

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Biggest business scandals of all time

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Charles Keating

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Keating’s  Savings and Loan debacle of the 1980′s. His company went from +781 million to -4.6 billion in one year. 5 Senators took $300,000 from Keating. By 1989 the estimated cost of the Keating scandal had reached $500 billion.

(Source Wikipedia – my guesstimate that about $2 trillion in today’s dollars.)

.

Due to time considerations and the get a life factor -

I’m just going to list a few infamous plutocrats


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Biggest business scandals of all time

.

Ivan Boesky

Inspiration for Gordon Gekko movie

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Biggest business scandals of all time

..

Bernard Ebbers

World Com

.

Biggest business scandals of all time

.

Dennis Koslowski

TYCO

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Business scandals

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Richard Scrushy

Health South Corp.

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Biggest business scandals of all time

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Ken Lay & Jeff Skilling

Enron

Most Plutocrats are NOT Caught

If They are, They Don’t Go to Jail

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Here a Long List from Wikipedia of more Scandals. Do Your own research you can find hundreds more.

______

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Legalized Theft

Banksta deregulation &

The 2008 Financial Meltdown

.

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What Investors411 supports is

Openness

Accountability

&

Honesty

.

Right Wing’s Response

Declare War On

.

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Welfare Mothers

Who Cheat the System

.

_____________

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Who is the bigger cheat or

threat to

.

  • a meltdown in the Financial System.
  • A devaluation of your home price
  • Costing you a job
  • Adding to the deficit.
  • Cheating your stock investment
  • Bringing on a recession/depression
  • Taking your Democracy.

The Welfare mom

or the Plutocrats?

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*******************

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STOCKS

..

Sorry, Limited time this AM.

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  • Spanish bonds  DOWN significantly (2.72%) to 5.905 at 8:30 EST. = Bullish
  • GS had better than expected earnings report and raised dividend
  • Biggest news is AAPL’s earnings report next Tuesday

******************

For foreseeable short term future – As long as the Spanish 10 year bond rate is above 6.00% and growing, the outlook will remain NEUTRAL.

Below 6.00% Outlook CAUTIOUSLY BULLISH.

,

Longer Term Outlook

3 months+

.

A Shaky

CAUTIOUSLY BULLISH

.

AS ALWAYS, DO YOUR OWN RESEARCH BEFORE INVESTING

ALL TRADING INVOLVES RISK AND POTENTIAL LOSS OF PRINCIPLE

CHECK ALL DATA, I MAKE MORE THAN GRAMMAR  ERRORS.







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April 16, 2012

Spain/Pain

Author: Barr Jozwicki - Categories: Market Update - Tags: , , , , , , ,
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First thing to look at this AM and every AM is Spanish (and Italian) 10 year Bond Prices
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At 6:00AM EST
Spanish bonds are ABOVE 6.00%
.
Bad News
.
.
up 2.41%
.
to 6.12%
_______

Latest price before publication at 8:00
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Better News

Spanish Bond Prices Falling
Moving in Right Direction
.
6.08%
.
At 9:20 EST Spanish Bonds back below 6%
Even Better
.
5.99%


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********************
********************
,

STOCKS

.

.

Our major Problem is

We no Longer Practice Capitalism in most of

The Financial Sector

See Feb. 13 through 29th Blog Posts

.

But instead run

A globalized interconnected extraction system –

an unregulated, over leveraged casino

or

a $600 trillion dollar derivatives market.

..

.

Friday we saw the first signs of

PANIC

as investors remembered the 2008 Meltdown

“Deja vu all over again”

.

_________

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The Same Old Story

.

Just like in the years preceding 2008 banksters lent out money to  mortgage customers that were poor risks. They did the same in Europe to countries. Banksters, thought they were protected, because the bundled and sold debt on a massive opaque, unregulated, derivatives market.

In 2008 they were not protected as Lehman collapse, was the last straw, in a   systemic worldwide credit meltdown.

Friday was a Disaster for

.

.

FINANCIALS

.

Nobody really knows how far over leveraged these globalized interconnected giants are to the now troubled Euro bond market in Spain and Italy.

.

Therefore Bankstas got toasted

.

  • DB - Germany’s largest TBTF lost 4.65%
  • BNP – Frances’s largest TBTF lost 6.24%
  • BAC – USA’s largest TBTF lost 5.34%

Others TBTF’s

got toasted too

.

See Sunday’s comments for more.

______________.

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Reading Tea Leaves

.

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You’d think Central Banks would do everything possible to drive down Spanish bond yields early today.

We’ll See.

7.00% is the generally acceptable figure that a meltdown could occur. We got over those levels late last year several times, but it looked like we were out of the woods as rates fell below 5.00%.

Obviously, we are not at 7.00% yet. But the steady 6 week rally to the high of the year has spooked bankstas and their investors across the world.

It is simply beyond me to predict when, where, how or if, Central Banks will intervene. They have done so in the past – Investors411 refers to this as the cavalry coming to the rescue.

FYI – Bankstas are going to spin they are afraid of regulations. Therefore they got toasted. It could be that regulators have forced them to stop over leveraging so profits are less – but I doubt it.

.

Above Expectations Earnings could mute some of the Panic over rising bond prices.

.

***********************


PAUL’s Corner

.

..

I spent the weekend driving fence posts in the garden instead of my usual leisurely tour of the markets. I did however get a few minutes to look at the charts using HGSI and EdgeRater and was about to copy some of the charts for today’s Paul’s Corner when I checked my fried Stephen Gerritz’s blog and I see Steve did all of the work for me. I posted a link to Steve’s blog in a Paul’s Corner Extra in the comments section Saturday afternoon.

Stephen Gerritz Blog Link:

Pretty good market analysis and with just 6 charts! That’s all you need for market analysis you ask? Eh, pretty much. If you hadn’t noticed, I pretty much rely on what the charts tell us and leave the nuts and bolts of the market for Barr to sort out.

So what do those charts tell us? Take a look at the 5th chart down on Steve’s blog, the Woody Indicator Chart.

Image Link:

The Woody Indicator is a proprietary indicator created by Ian Woodward from HGSI. Using this indicator to look at the VIX (The Volatility Index) we can see it is currently up in the “Run For The Hills” zone. The Woody Indicator is suggesting extreme caution in the market at this time.

I see Steve added a Blog Addendum 04 14 2012 Sunday afternoon where he provided a link to Fred Richard’s latest newsletter. Take a few minutes and read Fred’s comments particularly his AAPL comments:

“Apple represents about 20% of the total NASDAQ valuation. Unfortunately, it just broke its 20-day moving average for the first time since mid-December 2011.According to the latest data from MarketSmith™, 130 funds closed out their positions in Apple. Perhaps, investors should be increasingly nervous about the direction of a market that only moves up on low volume.”

So while the great unwashed were merrily chasing AAPL up the flag pole, the institutions were slowly but surely unloading AAPL.

So my friends, between the Woody Indicator being up in the rafters, AAPL dumping by the institutions, is this market safe? Barr even woke up from the weekend snooze to post a market warning in the comments section Sunday afternoon.

On a personal note, at the HGSI Work Shop group dinner Saturday evening, I had the great pleasure of sitting next to Fred during the dinner. That man is amazing, a great industrialist, educator and market expert.

Oh, let me tell you, for some odd reason it was easier setting fence posts 20 years ago….I can’t figure out why!


******************

For foreseeable short term future – As long as the Spanish 10 year bond rate is above 6.00% and growing, the outlook will remain NEUTRAL.

,

Longer Term Outlook

3 months+

.

Downgrade to

NEUTRAL/

CAUTIOUSLY BULLISH

.

AS ALWAYS, DO YOUR OWN RESEARCH BEFORE INVESTING

ALL TRADING INVOLVES RISK AND POTENTIAL LOSS OF PRINCIPLE

CHECK ALL DATA, I MAKE MORE THAN GRAMMAR  ERRORS.

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April 13, 2012

99% Spring

Author: Barr Jozwicki - Categories: Market Update - Tags: , , , , ,

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There’s 1000+ different mettings across America this weekend. Primarily organizing over
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Democracy &
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Income Inequality
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Obviously, the 99% Spring is left of center groups and may not be your cup of tea. (pun intended)
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To learn more and find a gathering point
in your state/town this weekend
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.
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Enter Zip code and distance from Home
in appropriate spaces for a meeting near you.
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(currently set for 5 miles from my house)
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.
.
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Don’t know if Elizabeth Warren is associated with
99% Spring, but like reason 202 her quote is about
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What Kind of
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Democracy YOU Want
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.
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Thanks to frequent commenters George, Popeye and CDB for requesting I post something on this.
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********************
********************
,

STOCKS

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China

and  more problems

.

.

Due to Limited Time this AM

Refer to yesterday’s blog for Data Links.

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  • China – Many investors talked up China’s GDP numbers yesterday (see Paul’s comments). They came in at 8.1% which is a slight bit less than what was expected, but way under the wished for number.
  • At 8:00 AM EST Spanish and Italian bonds are down slightly (@-1.00%)

  • GOOG went nowhere on its earning report. JPM & WFC beat expectations (nothing outstanding) – LINK
  • These are all major fundamentals that range from neutral (JPM) to very negative (China and more important)

.

Reading Tea Leaves

.

.

Not good stock news this AM so

If we can hold onto most of yesterday’s gains

its bullish

******************

,

Longer Term Outlook

3 months+

.

A Less Shaky

CAUTIOUSLY BULLISH

.

AS ALWAYS, DO YOUR OWN RESEARCH BEFORE INVESTING

ALL TRADING INVOLVES RISK AND POTENTIAL LOSS OF PRINCIPLE

CHECK ALL DATA, I MAKE MORE THAN GRAMMAR  ERRORS.



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April 12, 2012

Honest Abe

Author: Barr Jozwicki - Categories: Market Update - Tags: , , , , , , , , , , , , , , ,

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Open, Honest &

Accountable

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Does It Matter?

.

..

It’s YOUR Democracy.

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Should we have standards that demand openness, accountability, and honesty.

.

Let’s Look at some examples

.

__________

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The Food We Eat

.

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Should There be Standards?

.

________

.

The Medicines We Take

.

_

Should There be Standards?

________________

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The Stocks We Buy

.

.

Should There Be Standards?

..

__________

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The Politicians we vote for

.

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Should There Be Standards?

.

George Romney, Mitt’s Father, set the standard by disclosing 12 years of tax returns.

He was open, honest, accountable and had

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Nothing To Hide.

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*******************

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Bankstas

Honest, Open & Accountable?

.

.

Should There be Standards?…..

.

Should the Banking Cartel have special –

  • Too Big To Fail Banks?
  • Unregulated $600 Trillion Exchanges?
  • Their own Set of Accounting Rules?

PS – It’s hard to picture the polls, who rely on contributions from Big Banksta Cartel, throw Banksta friends in the Briar Patch

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**********************

**********************

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STOCKS

..

____________

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Spain/Italy

.

.

The Two Euro Countries to Watch

.

Yesterday the Month Long Meltup

in Bond Yields REVERSED.

.

The reversal continues = Bulls Rule.


  • Italian 10 year bond yield is falling this AM, down 2.84% to 5.38% (8:00 AM EST) Well below the 7.00% Danger Zone but along with Spain in a month+ long meltup is a significant concern.
  • Spain’s 10 year bond yield moving in concert with Italy. Down this AM  1.61% to 5.78%.  Spain is more critical, because it is closer to 7.00%.

.

The Cavalry

.

.

Is that the trumpet sound of a Central Bank liquidity Cavalry charge driving down Spanish and Italian bond yields? From yesterday

A one day trend – you hear the sound of the trumpet.

Day two confirms day one move &

a three day fall in Yields would be the

Cavalry is in sight.

.

__________

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Old Faithful

The McCellan Oscillator

.

  • Our #1 technical forecasting tool, the McClellan Oscillator (MO) rose to -60.87 (for more see  STRATEGY link at top of blog and scroll down) We are in oversold territory at @-60.   = Bullish
  • 6 month chart of MO. & a three year chart. Remember – The MO is best at calling tops and bottoms.  Check out the charts. Last dip was to - 85 in March, then -110 in November and then a 3 year low of -140 last April.

.

********************

.

.

What would make the budding Rally

turn into a

Stampede?

.

.

A better than expected earnings forecast from

GOOG & JPM.

.

GOOG reports after the bell today and JPM tomorrow before the bell. (WFC too)

Several of you are placing an expensive , but palatable, Put/Call option combination trade on GOOG with an expiration on the 21st, or in May. A JPM call seems palatable.

From Yesterday

“For those that can handle the risk

an opportunity to nibble.”

.

******************

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Paul’s Corner

.

.

A brief look at

Your Stock List


Most stocks on the list took a hit these past few days. If a stock is on the 17 or near the 17 it can be played market conditions permitting. If it “broke the 50” caution should be observed, and ideally not purchased until above the 50.

Check the charts!

CMG – Sitting on the 17

DLTR – broke the 17 but now sitting on the 17

ENBR – on the 50 and 17 basing

FAST – broke down through the 50

FL – above the 50, below the 17

HD – on the 17

IMAX  – breaking down, broke the 50 ALL HGSI indicators are red.

IBM between the 17 and 50

KLAC  – just below the 17

LEN – between the 17 and the 50

MC – on the 17

MNST – above the 17

SWI -  below the 50 and the 17

TSCO – above the 17

URI – broke the 50, all indicators are red

The Home Builders have been a good play these past few months and two ETF’s, ITB and XHB are a good alternative to the individual stocks.  So what’s the difference between the two?

A few days ago, (April 9) Dave Steckler author of the etfroundup.com blog that many of us read wrote the following about these two ETF’s:

“Let me give you another example.  Last Thursday I discussed a long trade signal in ITB, the home construction ETF.  ITB is offered by iShares.  Another big ETF player is Standard & Poors, which offers XHB, the SPDR homebuilders ETF.  So is there a difference between the two and does it matter which one you buy?  It does, which is why you need to drill, baby, drill down and do your research.

ITB keeps roughly two-thirds of its assets in home building stocks and one-third in home furnishings, plumbing suppliers and white goods appliance makers.  XHB on the other hand does the reverse, making the home-focused retailers and suppliers the primary focus and the home builders a secondary focus.  So even though “home construction” and homebuilders” sound like they’re the same thing, they’re not.  Do your homework!”

Blog Link

Which ETF to buy? As Dave suggests do your homework, look at the charts, check the underlying stocks.

Was this just a great buy the dip opportunity or the start of a few months of correction? As Dave Steckler suggests “we will know in the fullness of time!”.

.*************************

******************

,

Longer Term Outlook

3 months+

.

A lot less Shaky

(Because of recent rally in Spanish/Italian bond prices)

CAUTIOUSLY BULLISH

.

AS ALWAYS, DO YOUR OWN RESEARCH BEFORE INVESTING

ALL TRADING INVOLVES RISK AND POTENTIAL LOSS OF PRINCIPLE

CHECK ALL DATA, I MAKE MORE THAN GRAMMAR  ERRORS.

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April 11, 2012

Skilled Businessmen

Author: Barr Jozwicki - Categories: Market Update - Tags: , , , , , , , , , , , , , , ,

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Skilled Businessmen

.

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Warren Buffett & Bill Gates

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_______________

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Not So

Skilled Businessmen

.

.

Herbert Hoover &

Richard Fuld Jr.

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Hoover was the President that led us into the Great Depression

Fuld the CEO of the Lehman Brothers, whose bankruptcy ignighted the Great Recession.

.

________________

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In this era of political hype and propaganda

When a candidate top qualification is

He is a Businessman

How do you tell if you’re getting

a Buffett or Fuld?

.

________________

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Businessman


.

.

George Romney

George Romney, Mitt’s Father, an American Businessman,  ran for President in 1968.

.

He set the standard for

Openness, Accountability and Honesty.

George Romney released 12 years

of his tax returns.

.

.

Barack Obama & Joe Biden

.

Both have released

12 years of Tax reurns

.

_____________

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Businessman

.

.

Mitt Romney

Candidate for President

.

Who claims Pride

in his Wealth  & Business Skills

Should be

Open, Honest, & Accountable

to the American Public

and follow the 12 year

standard set by his Father.

.

.

**********************

**********************

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STOCKS

..

On March 8th, Investors411,

repeated for over the hundreth time,

the MOST important  factor

driving stock markets

.

.

The 800 lbs gorilla

.

If you have forgotten this or you’re a recent reader

link HERE for the answer

.

_______________

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The Black Swan

.

.

In Stock Market Termenology the Black Swan is

Bad News

.

The Black Swan event is a possible Eurogeddon, that could dramatically impact Europe and the world.  For over a month we have been inching closer to this possible Eurogeddon.

Investors411 measures that possible Black Swan event by looking at the yields of Spanish and Italian 10 year bond rates.

.

These rates go up = bad/bearish

Rates go down = good/bullish

.

____________

.

Italy (Pictured Above)

.

Meltup in Bond Yields REVERSED this AM.

A one day reversal is not a trend, but a move in the right direction.

  • Italian 10 year bond yield is falling this AM, down 1. 71%, to 5.51% (7:21AM EST) Well below the 7.00% Danger Zone but along with Spain in a month+ long meltup is a significant concern.
  • Spain’s 10 year bond yield moving in concert with Italy. Down this AM  3.08% to 5.87% at AM EST. Spain is more critical, because it is closer to 7.00%.


From Yesterday

We have a problem

.

It sure looks like the

Central Banks are losing control

in Europe.

.

.

A one day trend – you hear the sound of the trumpet.

Day two confirms day one move &

a three day fall in Yields would be the

Cavalry is in sight.

.

NB - Bearish Investors who have fought the Central Banks

have a three year losing streak.

.

__________

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Old Faithful

The McCellan Oscillator

.

  • Our #1 technical forecasting tool, the McClellan Oscillator (MO) fell  to -103.05. (for more see  STRATEGY link at top of blog and scroll down) We are in oversold territory at @-60.  MO is approaching OMG oversold territory  = Bullish
  • 6 month chart of MO. & a three year chart. Remember – The MO is best at calling tops and bottoms.  Check out the charts. Last dip was to - 85 in March, then -110 in November and then a 3 year low of -140 last April.

.

Reading Tea Leaves

.

Every time (9) the MO has fallen below -60 for the last 3 years there has been (sometimes barely) a 5% rally in the S&P 500. before its fallen back down below its low.

-103 is pretty low, and the index has gone lower. But technicals tell us we are far closer to a low than a high.

.

The bond rates still trump everything,

but they started a reversal today

.

Short term Traders and Longer Term Investors

Tea Leaves seem to indicate

A reveral in trend.

.

For those that can handle the risk

an opportunity to nibble.

NB – Those that have fought the Fed and it’s #1 ally the European Central Bank have lost over the last three years.

I do NOT have inside information on what Central Banks are doing. But it does look like the ECB and friends who have committed over a trillion in liquidity to prevent Eurogeddon/A Black Swan Event, may have started to use some of that $$$ today.

.

******************

.


Longer Term Outlook

3 months+

.

A  Shaky

CAUTIOUSLY BULLISH

.

AS ALWAYS, DO YOUR OWN RESEARCH BEFORE INVESTING

ALL TRADING INVOLVES RISK AND POTENTIAL LOSS OF PRINCIPLE

CHECK ALL DATA, I MAKE MORE THAN GRAMMAR  ERRORS.


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April 10, 2012

Mr Burns/ The Simpsons

Author: Barr Jozwicki - Categories: Market Update - Tags: , , , , , ,

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First  -  A Fun

Quiz

Slowly scroll down, because answers are on the bottom

(I got 9 of 14 right)

.

.

Pass it on

Source and facebook link

.

****************************

.

STOCKS

.

Italy (Pictured Above)

.

___________

.

Eurogeddon is

One Step Closer

this AM

.

Meltup in Bond Yields Continues


  • Italian 10 year bond yield is rising this AM, (up 1%) but not past Thursday’s high. 5.54% (8:15 AM EST) Well below the 7.00% Danger Zone but along with Spain in a month long meltup thats increasing in speed.
  • Spain’s 10 year bond yield moving in concert with Italy. Up 2.99% to  5.92% (6:15AM EST)

We have a problem

.

It sure looks like the

Central Banks are losing control

in Europe.

.

.

Where The Hell is the

Cavalry???

__________

.

Old Faithful

The McCellan Oscillator

.

  • Our #1 technical forecasting tool, the McClellan Oscillator (MO) fell  to -76.92. (for more see  STRATEGY link at top of blog and scroll down) We are in oversold territory at @-60.  MO is  = Bullish
  • 6 month chart of MO. & a three year chart. Remember – The MO is best at calling tops and bottoms.  Check out the charts. Last dip was to - 85 in March, then -110 in November and then a 3 year low of -140 last April.

.

Fundamentals Trump Technicals

.

.

The Meltup in Bond Yields

Trumps our Bullish MO

.

**********************

.

  • Spanish bonds over 6% will change the log Term Outlook to NEUTRAL.
  • Technically we do have a buy the dip possibility, but its getting trumped. So let’s wait for a lower MO.
  • US markets, especially AAPL, holding up surprising well, despite Europe’s troubles.

.

Longer Term Outlook

3 months+

.

A Very Shaky

CAUTIOUSLY BULLISH

.

AS ALWAYS, DO YOUR OWN RESEARCH BEFORE INVESTING

ALL TRADING INVOLVES RISK AND POTENTIAL LOSS OF PRINCIPLE

CHECK ALL DATA, I MAKE MORE THAN GRAMMAR  ERRORS.

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April 9, 2012

Racism and Media

Author: Barr Jozwicki - Categories: Market Update - Tags: , , , , , , , ,

.

Yes We Can

America*

.

.

We scored another victory against

women haters an racists late last week

.

.

The Influential Conservative Publication, National Review

fired

serial “misogynist” and “racist

John Derbyshire last week.

It’s a free country and racists and women haters, have their right to free speech, but those of us who believe in equality have the right to fight back against their hatred.

The enlightened action by the National Review would never have come about unless we all had stood up against another public figure with a history of hatred toward blacks and women - Rush Limbaugh

.

Derby is a Tuna compared

to the Great White Whale

.

.

Now 67 Advertisers have pulled adds from Limbaugh’s show. (Walgreens the latest) Add this to the @100 who have said preemptively they would not advertise.

Limbaughs

20 Worst Racial Attacks

..

.

Investors411.readers know why some people feel Limbaugh must continue to spew his vile hatred of women and blacks.

.


Without Limbaughs millions of like minded haters,

right wing candidates would lose much of their support.

.

Of course you all remember Romney’s Bain Capital

is one of the hidden owners behind Limbaugh’s network.

*Thanks to Yankee Bob for the term “Yes We Can America.”

Thanks to the National Review for firing Derbyshire and earlier MSNBC for suspending Ed Schultz for two mysogyist remarks. ..

.

********************

.

STOCKS

.

.

Wall Street Bull and OWS Symbol

..

Insight into how Investors411 evaluates stocks, markets and trends can be found in the STRATEGY Section of the blog.

.

_____________

.

The Dreaded

Triple Whammy

.

.

Mamma Yokum

.

Mamma Yokum was a beloved  character from the old Li’l Abner cartoon.

.

She could “melt a battleship with her

Triple Whammy”

.

We may not have had something as sever as a triple whammy over the three day weekend, but we sure had three big pieces of bad news.

.

______________

.

Repeat from last week

The Stock Cycle

A graph from Zero Hedge on what’s moving stocks now

.

The Good News -  We are in the “Market Sells Off/ Outlook Deteriorates (closer to the end) of the cycle.

The Bad News - is three fundamentals have smacked down stocks across the world.

.

  1. A disappointing  US jobs report saw less jobs growth than the last three months and less than expected numbers (Expected – 180 to 200 k  jobs created. We got 120 k). Poor economics starts to bring on talk of Central Bank intervention.
  2. CPI numbers out of China were worse than expected. (3.6 instead of 3.3) Greater chances of inflation mens less chance of intervention by their Central bank.
  3. Italy and Spain bond yields are moving up this AM (see below)

.

_____________

.

Mohamed El Erain

on with the markets

fixation on Central Banks liquidity

Mohamed is the #2 at the mother of all bond firms PIMCO.

.

____________

.

Another Strong fundamental

- Earnings Season

Starts this week.

.

______________

.

.

Old Faithful

The McCellan Oscillator

.

  • Our #1 technical forecasting tool, the McClellan Oscillator (MO) fell  slightly to -52.67. (for more see  STRATEGY link at top of blog and scroll down) We are approaching overbought territory at @-60 MO is  = NEUTRAL/bullish
  • 6 month chart of MO. & a three year chart. Remember – The MO is best at calling tops and bottoms.  Check out the charts. Last dip was to - 85 in March, then -110 in November and then a 3 year low of -140 last April.
  • Not there yet, but we are getting down close to buy the dip territory.

.

______________

.

.

Canary in a Coal Mine

.

Investors411 uses several different gauges to determine how well Central Banks are doing at manipulating stocks and bonds.

  • Italian 10 year bond yield is rising this AM, (up 1%) but not past Thursday’s high.  5.45% (6:45 AM EST) Well below the 7.00% Danger Zone but…

.

The Canary  Coughed.

.


*********************

.

When Do We Hear the Trumpets?

.

.

Will the Central Banks ride to the Rescue?

.

Paul Krugman editorialized last week that our fragile economy needs needs stimulus not austerity. He believes Bernanke and the Fed are intimidated by the Republican’s call for his head.

Jobs growth certainly rose much faster when the Obama stimulus impacted the economy. than after the Republicans took over congress.

Our Fed’s “Operation Twist” is in effect and runs out in June. Our interest rates on our treasury bonds are very low.

It is Europe that’s the clear and present danger, because of the rising bond rates and their closer proximity to 7.00%. That’s when the casino of unregulated derivative gets threatened.

Best Read of Tea Leaves

.

.

After an obvious stock meltdown early this AM, the most significant factor is – Are Central Banks Losing Control of the Spanish/Italian bond market?


The final look at the Spanish 10 year bond

NO change at 8:45 AM EST.


**********************

.

  • If you’re a short term trader you already run for the exit.
  • If your a long term investor you’ve got plenty of gains behind you and can weather a healthy 5 to 10% dip/correction
  • The key metric for both trader and investor is those rising yields on Spanish and Italian bonds.
  • Tomorrow – Will the MO get low enough for a buy the dip opportunity.


Longer Term Outlook

3 months+

.

A Shaky

CAUTIOUSLY BULLISH

.

AS ALWAYS, DO YOUR OWN RESEARCH BEFORE INVESTING

ALL TRADING INVOLVES RISK AND POTENTIAL LOSS OF PRINCIPLE

CHECK ALL DATA, I MAKE MORE THAN GRAMMAR  ERRORS.


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April 5, 2012

They’re Back – Vampire Squids

Author: Barr Jozwicki - Categories: Market Update - Tags: , , , , , , , , , ,

.

Vampire Squids

/

Investment Banks

,

.

Question???

.

Who would the

Vampire Squids

rather give a Loan to?

.

.

A group of Terrorists

(Perhaps in the Sudan)?

.

.

A Group or Country

That’s Rioting Now (Perhaps Spain)?

.

.

American Small Business?

.

If the Vampire Squid could avoid the negative publicity associated with their loan, who would they give their money to?

.

Answer

It Doesn’t Matter

.

The Vampire Squid/Investment Bank

.

doesn’t give a damn.

.

Their big profits does not from capitalism, but from money extraction for all kinds of loans –  From the terrorist’s credit card to a Europen student loan.

They take these loans in bundles and gamble them in the unregulated casino or $600 trillion dollar derivatives market.

.

There is no reason to care what the quality if the loan is.

Only worry – The profit from

the commission and gambling


.________________

.

Who Pays for the

Bailout or Financial Armegeddon

If A Too Big to Fail

Vampire Squid dies?

_______

.

Look deep into a Mirror

.


Is This what you see?

But its coming.’.

********************

.

STOCKS

.

.

Wall Street Bull and OWS Symbol

..

Insight into how Investors411 evaluates stocks, markets and trends can be found in the STRATEGY Section of the blog.

.

_____________

.

Eurogeddon???

Caution - Figures in Below Graphic are dated.

Therefore, NOT Accurate

.

.

We had some warning sign yesterday, as European markets took a big hit and US markets followed with a more minor hit.

Will Eorope recover?

Will there be another recession?

Will there be Eurogeddon?.

A tough call. But Investors411  gives you…

Why its happening,

Whose in Trouble (really everyone)

How to measure if help is coming

.

______________

.

Repeat from Yesterday

A graph from Zero Hedge on what’s moving stocks now

.

Our Long Long Term Bullish Bias

Becomes a bit shaky because of Europe

(see below)

.


______________

.

.

Old Faithful

The McCellan Oscillator

.

  • Our #1 technical forecasting tool, the McClellan Oscillator (MO) fell to -50.28. (for more see  STRATEGY link at top of blog and scroll down) We are approaching overbought territory at @-60 MO is  = NEUTRAL/bullishbullish
  • 6 month chart of MO. Remember – The MO is best at calling tops and bottoms. MO will get trumped if Spanish/Italian bonds continue to fall.

.

______________

.

.

Canary in a Coal Mine

.

Investors411 uses several different gauges to determine how well Central Banks are doing at manipulating stocks and bonds. Spain and Italy are the next two countries in line that are in economic trouble.

  • Italian 10 year bond yield rose to the highest in a month yesterday and this AM 5.50% (6:45 AM EST) Well below the 7.00% Danger Zone but…
  • Spain’s 10 year bond yield rose significantly yesterday (4+%) and this AM (2+%) to 5.81% (6:45AM EST)

.

From Yesterday

The Canary just Chirped.


.

**********************

.

Paul’s Corner

.

.

WHOOPS!

Um, Dow down 124, NASDAQ down 45, the S&P down 14, who exited the dance floor yesterday and left us standing there? A buy the dip opportunity or the start of the dreaded long overdue correction?

My good friend Ian Woodward posted a blog last evening discussing the current market and what to watch for.

LINK

As Ian suggests, yesterday was a major shot across the bow and is the second we have had in a matter of weeks.  He gives you APPL upside and down side targets. Please take a few minutes and read Ian’s blog.

YOUR Stock List

CMG – sitting on the 17, held up well yesterday.

DLTR – sitting on the 17, held up well yesterday.

ENB – chart starting to look attractive

FAST – dropped below the 17, its usual line of support, basing

FL – sitting on the 17, indicators turning red

HD – sitting on the 17, held up well yesterday.

IMAX – broke below the 50, HGSI indicators are red

IBM – closed on the 17

KLAC – dropped to the 17, its usual line of support

LEN – sitting on the 17, held up well yesterday.

MC – sitting above the 17, held up well yesterday.

MNST – sitting on the 9, held up well yesterday.

SWI – closed below the 17 and above the 50, this is a high beta stock

TSCO – good chart action yesterday, didn’t even know a correction was going on.

URI – sitting on the 17

Personally I’m going to sit out the next few dances on the market dance floor until we have a clearer idea of market direction. Too many times in instances like we are sitting, I have lost a few toes for venturing out onto the dance floor when the elephants were leaving.

As Ian suggests “Net-net, tomorrow (today) will be a key day with regard to where we sit for this Rally…It is at the crossroads.”

.

*********************

.

We have a serious problem in the rising

yields of Spanish and Italian bond rates.

.

Nervous Nelly

.

The rising Bond Yields

Unless rapidly addressed are a significant problem

Sooner Rather Than Later

.

The rise in yields started a month ago and is now growing faster. Spain, the worst rose 4% yesterday and has added 2% already this AM.

I don’t have the inside information or skill to to know when or how Central Banks will manipulate Spanish/Italian bonds lower or ride to the rescue.

But they always have intervened in the past.

How ECB and friends drive down rates – They supply the liquidity for banks and others to buy the bonds, therefore driving  down rates.

.

But, right now it looks like they are

loosing control.

.

Therefore Investors411 is closing its long position in XHB (homebuilders ETF)

with a Stop/sell order at 20.64.

.

.

As stated many times, the Central Banks have always rode to the rescue.

Listen for the trumpet –

That’s Spanish/Italian bond rates falling.

The final look at the Spanish 10 year bond

at 8:45 AM EST.

Down a bit from 6:45 to

5.79%



_______________


Longer Term Outlook

3 months+

.

A Shaky

CAUTIOUSLY BULLISH

.

AS ALWAYS, DO YOUR OWN RESEARCH BEFORE INVESTING

ALL TRADING INVOLVES RISK AND POTENTIAL LOSS OF PRINCIPLE

CHECK ALL DATA, I MAKE MORE THAN GRAMMAR  ERRORS.

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April 4, 2012

Eurogeddon?

Author: Barr Jozwicki - Categories: Market Update - Tags: , , , , , , , ,

.

Europe’s Coming Recession

.

.

Eurogeddon?

.

What worked – You saw Bernanke /Obama stimulate the USA Economy and lead the world  out of the feared “economic armageddon” of the Great Recession.

What’s not - Now we are watching European governments act, just like Republicans, introducing austerity measures way too soon and drive their economies into recession.

.

England & the EU are the

World’s Largest economic Entity

.

Therefore, It’s Recession or Possible

Eurogedden

Will Impact The World

.

___________

.

The Warning

.

.

Paul Krugman

.

Nobel Prize Winner – Paul Krugman – Has warned has warned of Europe’s impending doom in a series of editorials. The latest on 1/30, 1/31, 2/6, 2/18, 3/7 - Link Here if you’d like to read warnings

.

The Problem is European Leaders have

committed their people to

Sever Fiscal Austerity

.

Europe’s got the monetary (Introduce more liquidity) part right, but they are dramatically slashing budgets way too early.  Here’s some early GDP results.

.

Observe what’s happened in the last Year to GDP

Compare with the USA

.

United Kingdom GDP Growth Rate

Italy GDP Growth Rate

France GDP Growth Rate

United States GDP Growth Rate

You can use ANY European Country

and compare last years results with the USA.

We go up.

They at best go down slightly

At worst dramatically down

___________

.

DANGER WILL ROBINSON

DANGER DANGER

.

.

It’s Time to Bring out the old “Lost in Space Robot” with all his flashing lights, and flapping arms and warn of impending long term doom.

.

The Downward GDP Trend in Europe is CLEAR

The Upward GDP Trend in the USA is CLEAR.

Europe can drag the rest of the world down with it.

or

The US can drag Europe up with it.

.

The Solution has always been clear

to Investors411 readers

.

Before you turn the deficit hawks loose you stimulate, create jobs, and make sure the recession is behind you.

.

______________

.

Bottom Line

.

Its impossible to call the tipping point in Europe, a day, a month a year?

But its coming.



********************

.

STOCKS

.

.

Wall Street Bull and OWS Symbol

..

Insight into how Investors411 evaluates stocks, markets and trends can be found in the STRATEGY Section of the blog.

.

Headline

Eurogeddon

Caution – Figures in Below Graphic are dated.

Therefore, NOT Accurate

.

.

The First Warning signs

.

First – a graph from Zero Hedge on what’s moving stocks now

A Second Chart showing  globalized liquidity. The amount of $ Central Banks are flooding the markets with - LINK

.

  • Any meltdown (possible Eurogedden) won’t happen all at once
  • But this morning Germany – The leading Country in Europe – broke down through its support level.

.

Therefore, Our Long Long Term Bullish Bias

Becomes a bit shaky because of Europe

.

Bottom Line - The Central Banks still Rule, but the question of a deeper European recession will now get factored into stock prices. Unfortunately it looks worse than most predict.

Increased budget cuts are plunging Europe into a deeper recession.

______________

.

.

Old Faithful

The McCellan Oscillator

.

  • Our #1 technical forecasting tool, the McClellan Oscillator (MO) fell to -19.45. (for more see  STRATEGY link at top of blog and scroll down) MO is  = NEUTRAL

.

______________

.

.

Canary in a Coal Mine

.

Investors411 uses two gauges to determine how well Central Banks are doing at manipulating stocks.

  • Italian 10 year bond yield rose to the highest in a month 5.29% (8:15 AM EST) Well below the 7.00% Danger Zone but…

the Canary just Chirped.

.

**********************

.

It’s NOT the time to panic, because the Central banks will produce more liquidity if the problem gets worse.

However, China slowing down, Japan’s problems, a coming European recession are all drags on a remarkable US recovery.

Things  are NOT as long term bullish as they used to be last quarter.

.

Longer Term Outlook

3 months+

.

Still

CAUTIOUSLY BULLISH

.

AS ALWAYS, DO YOUR OWN RESEARCH BEFORE INVESTING

ALL TRADING INVOLVES RISK AND POTENTIAL LOSS OF PRINCIPLE

CHECK ALL DATA, I MAKE MORE THAN GRAMMAR  ERRORS.


  • Share/Save/Bookmark
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