You might think the above is the “monster” Bernie Madoff, but please consider a far bigger monster – the 5 largest US shadow banks.

The Slow Motion Coup D’etat

There has been a slow motion Coup D’etat in the USA.

You could argue it began in the 80′s when we the US oligarchy’s wealth started to grow and working class Americans were pushed further into debt. However, now its become an outright white collar criminal enterprise that along with a compliant Federal bank and government is harvesting trillions of dollars and placing a crushing burden on working class Americans.

Even the loan financial figure, who had nothing to do with the 2008 financial meltdown, jailed Ponzi scheme crook Bernie Madoff warns in the New Yorker“It’s unbelievable. Goldman … no one has any criminal convictions—the whole new regulatory reform is a joke. The whole government is a Ponzi scheme.”

Matt Taibbi calls Goldman Sachs - A great vampire squid wrapped around the face of humanity relentlessly jamming its blood funnel into anything that smells like money.

Its unfair to single out Goldman from the other 4 major “to big to fail” shadow banks or the network of 21 primary dealers that our central bank (The Fed) and most federal politicians protect.

What’s a safe long term investment out there for working Americans?

None of this is safe from partisan destruction or government backed shadow bank raids.

Many economists, including Robert Reich, track the redistribution of wealth in America. In 1980, the weathiets 1% held 9% of the wealth now its over 20%.

Now we have the 5 too big to fail shadow banks with an almost infinite liquidity from the Fed, and no oversight doing whatever they want. (Aside – Hush don’t tell anybody but guess where most of Ka Daffy’s $30 billion in frozen assets, along with countless drug cartel billions are?). Yes other sectors of the US economy are the same. But, its the financials that lead because they are leveraged.

God help our debt ridden butts when one of the crooked too big to fail banks goes belly up. So, the oligarchy will keep them on the unregulated dole till we run out of bonds, credibility or whatever you want to call it.

“Our government teaches the whole people by its example. If the government becomes the lawbreaker, it breeds contempt for law; it invites every man to become a law unto himself; it invites anarchy.” Judge Louis D. Brandeis

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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 +0.79% up
NASDQ +0.04% up
S&P 500 +o.56% up
Russell 2000 +0.18% -

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Technicals, Fundamentals & Analysis

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

BUBBLE-ICIOUSInvestors411 term for the stock market – We are all riding on the outside of an ever expanding &  Central Bank manipulated stock bubble. See Investors411 STRATEGY section for more

  • Same old Fed manipulated stock bubble building reasserting itself as the dominant trading pattern.
  • Libya/oil disruption still has potential to disrupt trading pattern. Until the oil fields start burning its impact on stocks should diminish.
  • Aside from KA DAFFY no oil dictators seem in danger today
  • From Seeking Alpha – Like the title Was That It for The Correction? & author has a decent sector analysis chart at end.
  • Fed and Buffett were jaw boning the markets yesterday.

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Shorter Term Forecasting Indexes

  • The Dollar (USD) [Any daily price move over +/- 0.50 is significant. Dollar usually moves inversely to stocks] Dollar fell yesterday -0.50%. Short term support level around $77 was broken.  Let’s see if it holds or confirms the breakdown today. 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 .] Rose to to +16.97 Over the last three months the new parameters seems to be +/- 30 as an overbought/oversold level. Note: the +30 barrier has become a very strong resistance point. Getting close to +30 resistance level. Stocks outlook = Neutral

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Reading The Tea Leaves

There is a significant change going on in the way America is viewed.

Virtually every time there is a major worldwide crisis, investors flood into the safety of the dollar. This time the dollar has fallen and yesterday broke its short term support level.  Perhaps any analysis of this is thrown off by the Fed’s manipulation or liquidity dump. But a falling dollar in the short term is usually good for stocks. Longer term it shows a lack of confidence in the USA.

A little wiggle room in the MO till strong resistance at +30.

What to watch today

USO - oil prices

UUP - (Tracking ETF for dollar)

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

AAPL – Bounced off its 50 DMA support level. As long as it hangs in above that everything OK

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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)

  • REMX (1/2 position, took 5+% profits already)
  • RJA 1/2 position, took 5+% profits already)

Will post when I buy/sell in comments section of blog.

UCO -(2x oil prices)  Buy the dip. Why not its a hedge against higher gas prices.

REMX (Rare Earth ETF) – Really believe this a good long term holding.  Hopefully longer term holding. Stop still set about 2% below rising 50 day moving average. Will buy more on dip.

DGP – (ETF is 2X gold) . Set to follow silver and approaching breakout. Many web sites that focus on precious metals are calling this a manipulated commodity. A buy the dip ETF

DBC – (Commodities ETF) For a more complete list of commodity ETF’s see POSITIONS listed at top of blog  DBC is tilted to energy. Perhaps preferable or a good alternative would be *DJP that is more agriculture and metals or RJA (all agriculture)

RJA (Agriculture commodities Index)An  ETN, not an ETF. Hopefully longer term holding. Stop set at @ 2 % below rising 50 DMA. Again would buy a dip

UWM (2x small cap stocks) TNA (3X small cap stocks)

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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 (at top of page) for lists of potential stocks & ETF’s including ”YOUR Stock List.” (YSL#4 is under construction.)

Longer Term Outlook - CAUTIOUSLY BULLISH

AS ALWAYS, DO YOUR OWN RESEARCH BEFORE INVESTING!

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