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Vampire Squids
/
Investment Banks
,

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Question???
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Who would the
Vampire Squids
rather give a Loan to?
.

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A group of Terrorists
(Perhaps in the Sudan)?
.

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A Group or Country
That’s Rioting Now (Perhaps Spain)?
.
.
American Small Business?
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If the Vampire Squid could avoid the negative publicity associated with their loan, who would they give their money to?
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Answer
It Doesn’t Matter
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The Vampire Squid/Investment Bank
.
doesn’t give a damn.
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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
.________________
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Who Pays for the
Bailout or Financial Armegeddon
If A Too Big to Fail
Vampire Squid dies?
_______
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Look deep into a Mirror
.

Is This what you see?
But its coming.’.
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STOCKS
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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.
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Eurogeddon???
Caution - Figures in Below Graphic are dated.
Therefore, NOT Accurate
.

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

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Our Long Long Term Bullish Bias
Becomes a bit shaky because of Europe
(see below)
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Old Faithful
The McCellan Oscillator
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- 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.
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Canary in a Coal Mine
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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)
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From Yesterday
The Canary just Chirped.
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Paul’s Corner
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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.”
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We have a serious problem in the rising
yields of Spanish and Italian bond rates.
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…
Nervous Nelly
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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.
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Therefore Investors411 is closing its long position in XHB (homebuilders ETF)
with a Stop/sell order at 20.64.
.

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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%
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Longer Term Outlook
3 months+
.
A Shaky
CAUTIOUSLY BULLISH
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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.