Front cover of The Shock Doctrine: The Rise of Disaster Capitalism

Disaster Capitalism

2008′s Economic shadow bank meltdown was a chance for American based companies to shed US workers and hire new cheaper labor in the emerging markets.  This might be termed a form of “Disaster Capitalism.” Great for emerging markets, but obviously harmful to American working class.

“Disaster Capitalism” is a term used by Naomi Kline in her controversial book The Shock Doctrine. In its essence, for our current situation it is about how large American companies/wealthy individuals have used the 2008 meltdown to transfer additional American jobs and economic resources to emerging markets.

Bottom Line – You, fortunately, lived through an era where America dominated economically. Within a decade this will no longer be true as globalization is stampeding throughout the world. We are experiencing that shift now.

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

Index Percentage Volume
Dow +0.53% up
NASDQ +o.77% up
S&P +0.61% flat
Russell 2000 +1.40% -

Technicals, Fundamentals & Analysis

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

US Stock Markets -

Rally on below average volume (volume is also down @ 30% from year before) Bad news Friday was no obstacle to rising stocks. Employment numbers, an enforced foreclosure halt, and warning by somewhat important tech company NVLS did not hinder a rally. This is a bullish sign

Flat jobless rate means little to most US stocks.  Of course if unemployment were to increase this might hurt stocks. This is doubtfull since the Obama stimulus plan added from 1.7 million to 3.3 million jobs according to non parisan C.B.O. Globalized US equities are no longer dependent on the US maintaining a robust GDP. In a globalized world the growth of emerging markets like Brazil, India China etc. is what’s keeping stocks afloat.

Fundamental Outlook – “The concept of a double-dip recession has been replaced with slow and steady improvement, and even if we don’t get it, we have a Federal Reserve that’s ready to step in and support the rally,” said Art Hogan, chief market analyst at Jeffery’s.

This is basically the view Investors411 has had since we upgraded the long term outlook from NEUTRAL to CAUTIOUSLY BULLISH.

Significant Indexes

  • The Dollar (USD) [Anything daily price move over +/- 0.50 is significant. Dollar usually moves inversely to stocks] The dollar fell -0.26% Friday. Since last report down over 0.50% For stocks falling dollar trend is = Bullish
  • The Baltic Dry Index (BDI) [measures cost of world trade. Also proxy for China & emerging markets] Rose +1.28% Friday  An 8 week bull run, then a two week fall. After short consolidation, looks like bulls are back.  = Bullish
  • McClellan Index – (MO) [The rough guideline is over +60 = overbought market = sell positions or short stocks, & -60 = oversold market = buy stocks.] Rose to to +21.47. Still lots of room to move higher or lower. Location= NEUTRAL

Reading Tea Leaves

Same short term outlook holdsStill lots of room for bulls to move higher before overbought on MO. Still lots of room for dollar lower before it reaches a a major support level.

From Wednesday – “Sure looks like we have a runaway bull market. SPX at 1161 with 1221 as this year’s high and major resistance level”. S&P 500 now at 1165.

The Market manipulators should buy the dip till we reach major support for the dollar, or resistance for the S&P 500. The dollar is the still key index to watch.

Earnings Season blooms this week. – If we do get a continued set of bad earnings forecasts then this would trump the above outlook


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)

  • EWS (Singapore)
  • USO (price of oil/commodity).
  • SSO (2x what S&P does)

Looking to add emerging markets or Gold on dips.

Check out Paul R’s always useful updates on individual stocks and sectors in the comments sections.

Longer Term Outlook - CAUTIOUSLY BULLISH

AS ALWAYS, DO YOUR OWN RESEARCH BEFORE INVESTING!

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