A Call to Action

The New White House Web Site

Simon Johnson (Former IMF chief economist and MIT Prof.)

You make the differenceThe folks at the Baseline Senerio have joined with others, after the President’s speech yesterday to support legislation offered by Sherrod Brown (D – OH) & Ted Kaufman (D- DE) to take stronger action against the shadow banks. (Obama did not endorse this bill) Nobel Prize winner Krugman’s view

I’ve signed their petition and hope you do too LINK

Bottom LineSince Financial reform bill(s) wind their way through congress a most unusual phenomena is happening – They are getting TOUGHER. Republicans are caving (not a lot but  a significant handful) The harder you push the more protections for  Main Street – YOU, your taxes, your rights, your stock investments – will have.

Consensus on Shadow Banks is starting to move. Shadow’s have even hired and paid a phony front group that has already spent $2,000,000 to pose as a group that wants to break up banks, but actually promotes the opposite. Link to Video

Obviously the outright collapse of shadow banks would be devastating economically. However, what’s needed is legislation with some teeth that protects YOU.


Debate in comments Section

See J Sovjani latest reply – This debate has gone from GM to Dumpsters to Washington Square NYC. . A significant chunk of the folks who are on the private mail list of this blog are artists or craftsmen and you can follow the entire thread by scrolling down at this link

News Junkies

SHerwehe has sen in the following site that lists front pages  of newspapers across the world. I’ve used this site for months and it is really useful because it shows not only the different biases in the USA, but across the world. The US government has a post that actually translates foreign papers, but do not have time to track this down.

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 +0.08% up
NASDQ +0.58% up
S&P 500 -0.23% up
Russell 2000 +1.12% -

Investors411 record – 5 years of beating benchmark S&P 500 and almost all major US indexes

Technicals, Fundamentals & Analysis

See Positions for changes made each weekend

cookie-monster-diet.jpg

Answer -stocks so eat.

The NASDQ had fair sized gains gains in increased, above average volume. The Russell 2000 (small cps) out performed and the other two major indexes inched higher in increased above average volume.  Markets all rallied into the close = Bullish

US equities greeted Obama’s financial reform speech with a rally of almost 100 Dow points (Down @-80 to up +9.37 at close) Obama’s certainly no Teddy Roosevelt. = Bullish

Their is a giant cookie monster of ”programed traders” [ huge institutional investing] that comes at the same time and to the same place (Wall Street) each afternoon and devours all the cookies (stocks) it can eat. Every dip is getting bought no matter the cause. =Bullish

Stocks rallied despite a significant rally in the dollar. The Greek debt situation grows and the dollar is rallying because the Euro is falling. = Bullish

AMZN & MSFT Two tech giants both were down after reporting earnings in after the markets closed yesterday – drops of -5+% in in post market trading, still down but much better in pre market trading= Bearish

AnalysisIf markets are down around noon expect the Cookie Monster to eat the cookies, vegetables and whatever is out there

Significant Indexes

  • McClellan Oscillator rose slightly to +5.49 yesterday.  [Basically, 60 or above = Overbought = sell. -60 or below = Oversold = buy]. More sophisticated investors can use the 50 & 200 day MA’s and adjust from there. StockCharts has a better version of the McClellan chart ($NYMO) LINK. - This is almost right in the middle of NEUTRAL territory
  • US Dollar – rose a significant+0.58% yesterday. [Anything over +/- @0.50 is significant.] Mantra - right now The Dollar Rules Is very important. Remember, dollar down almost always = stocks up and visa versa. The positive earnings reports are overshadowing the dollar which is in the upper end of a consolidating range between @$80.00 & @$82.20. Dollar at 81.65. If it moves to either side of that range it will impact stocks.

Positions

The  Positions Section = latest buys and sells – (Revised positions last weekend) - These are positions I actually own

UWM – Investors – Our long position, ETF, that does basically 2X the Russell 2000 will continue to hold into the weekend. Considering a smaller position in TYH (ETF that does 3X NASDQ) on a dip.

Many of you are reporting excellent results in IMAX, VCI, SHOO, SNDK MSPD & VLTR and others. Do NOT chase these stocks, unless you really know how to day/swing trade – even then most are too overextended to risk a short term buy.  Traders should think more about selling as issues get over extended. Use the basic strategy – see top of blog.

Again McClellan Oscillator is NEUTRAL and a better time to buy (less risk) is when stocks are oversold.

Long Term Outlook = CAUTIOUSLY BULLISH

AS ALWAYS DO YOUR OWN RESEARCH BEFORE INVESTING

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