Why All the Fireworks?

  • YOUR Stock List was up +7.6% while the S&P was down -1.9% (see below)
  • Enter Investors411 in Google and this site comes up #1
  • Happy Rosh Hashanah/New Year

A Little Redistribution

Would a little redistribution of the wealth really be so bad? The middle class is hurting and wants to work. We need to acknowledge the crisis brought on by globalization and how its impacting American workers. (Major topic of many past Investors411) Yes, the Shadow Banking meltdown made everything worse, but again its the middle class that’s has also felt the most pain in socializing the over leveraging at shadow financial institutions.

A message to all you wealthy Americans that have profited from the decades of globalization and those who don’t want to part with a dime to help. We’re All One America. Right now that middle class is hurting. We do need to keep middle class tax cuts and perhaps even offer more. But it’s your turn to step up and help.

Today offering a modest proposal for a new top tax bracket (those making over $410,000) by Annie Lowrey and what it would mean. Lowrey doesn’t ask for the tax rate to return to what it was under Ronald Reagan, but what it was for the weathiest 1% under Bill Clinton.


KISS & Stocks (Keep It Simple Stupid)

If you don’t understand a term look in up at Investopedia.com dictionary


Index Percentage Volume
Dow +0.45% up
NASDQ +0.90% up
S&P +0.64% up
Russell 2000 +0.79% -

Technicals, Fundamentals & Analysis

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

Mantra for the monthThe Black Box/High Frequency Traders BB/HFT control the majority of trades. Jim Cramer -”BB/HFT make up 80% of trades.”

Volume was still below average. The NASDQ was just below average indicating a few traders/investors outside the BB/HFT community nibbled on technology and probably smaller cap stocks.

This lack of volume is just further indication of the power of the BB/HFT traders or the % of the market they control. It’s not your fathers or even YOUR market anymore.  In the past Investors411 have discussed the impact of BB/HFT on trading and will continue to do so.

More Investors411 Guidelines

  • The Calendar -on top will take you to any past post of Investors411. Just click on the date and the blog for that day will appear
  • Search Box – Just type in a word and if it was tagged at top of blog the last post on that person/subject will come up. Example type in Kahneman then hit search - Bada Bing up will come one of my favorite blogs on the father of behavioral economics and some other outstanding individuals
  • HELP, STRATEGY, OVERVIEW & POSITIONS - are all listed at top of blog and offer an array of different information (more later)
  • Comments Section - Appears to the right and sparks fly on stocks, economics, trends and politics. Click on the writers Name, Initials and you’ll get the whole post.
  • Financial Charts and Blog Roll –  Too the far right are a list of  charts of some indexes & ETF’s that Investors often refers to. They are from Stockcharts.com. A excellent site for gathering free technical data. The Blog Roll contains some frequently used sources.

Significant Indexes

  • The Dollar (USD) [Anything daily price move over +/- 0.50 is significant. Dollar moves inversely to stocks] The dollar, fell -0.28% higher yesterday. Dollar in 4 week long trading range. For stocks = Neutral/Bullish
  • The Baltic Dry Index (BDI) [measures cost of world trade. Also proxy for China & emerging markets] Rose +1.95% yesterday. After slight four day hesitation back in rally mode. Remember this is especially relevant (in this case bullish) to those countries that have an export surplus = Bullish
  • McClellan Index – (MO) [The rough guideline is over +60 = overbought market = sell positions or short stocks, & -60 = oversold market = buy stocks.] MO rose to +30.84 yesterday. Clearly above zero and within 29 points of the NOT drawn in the sand line of being oversold.(+60) = Neutral

Reading Tea Leaves

The dollar is still the big dog wagging the stock market tail. Flat consolidation pattern holding means the same for stocks. We did have a dash of bullish news for stocks as the dollar fell a bit yesterday, but until consolidation pattern holds – so will stocks.

Considering how strong the run higher was last week in points, we should have another push even higher. Volume is just not as relevent to major indexes because of the BB/HFT domination and the lack of individual investors. Till the MO gets oversold case for bulls strong.

Repeat – UUP the dollar ETF is what to focus on for stock market direction if you are an active trader.


The  Positions Section link to latest & former buys and sells  - These are positions I actually own

Current positions –  EWS (Singapore)

From Paul “With today’s strong action, “Your Stock List” is up +7.6% since Aug 3. The S&P 500 down -1.9%.” Lots more if you click o the aboved referenced link

You sent in the stock picks that make up YOUR stock List. Give yourself a round of applauds. Paul & I went over the list and did eliminate some candidates.

You can find the complete YOUR Stock List located by clicking on the POSITIONS word at top of blog and scrolling down. Also Paul R has frequent commentary on these and other market news which is especially helpful for active traders. See comments section of blog.

Long Term Outlook – NEUTRAL



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