Getting Fleeced

Life is Good if you are a Banksta.

Banks are critical to the growth of any economic system.  But if you decimate the regulations and regulators who watch over the financial system then greed runs wild.

Today too big to fail banks with infusions of trillions of dollars from governments/taxpayers continue to threaten worldwide economic systems while still  torturing taxpayers and consumers.

Here’s just the latest -

  • No one goes to jail.  Our understaffed SEC (many scream cut government/cut regulators/cut regulations/cut SEC) who has often been accused of being in bed with bankstas (read Matt Taibbi) just settled with Citibank who was telling clients one thing and defrauding them by doing another.
  • Everyone from US Military Commanders to Apple Computer are held accountable for their actions. Bankstas are special.  They don’t have to mark to market their earnings results.
  • Goldman Sachs earnings (even without mark to market accounting) report is worse than expected and has a revenue LOSS – next day goes up +6%. Apple, who has to use mark to market accounting has a worse than expected earnings report and goes down -6%
  • No one will go to Jail – Price fixing scandal grows as major banks (BAC, C, JPM, DB) are accused of Price Fixing
  • Noted Economist, Prof Mark Hudson explains how European Debt Crisis is “Bankstas waging war against the people of the world”

The 1% at the top benefit enormously from banks. They reap they huge bonuses & salaries, they trade the unregulated Credit Default Swaps, and they run and invest in High Frequency Trades.

Damn it feels good to privatize those gains, socialize the losses and not be held accountable.

What do we sheep do?

(except the Occupy Wall Street protestors)

BAC and other banks save enormously when you use your debit card instead of a check. Now they charge a $5 monthly debt card fee. Again and again and again and again….

We sheep passively get fleeced.




egg splat crack smash broken

Another broken eggs meltdown day. NASDQ and Russell 2000 get clobbered. Dow and S&P spanked. Europe and earnings results to blame. Seeking Alpha’s “must know” stock news for today.

Some Important Points

High Frequency Traders are volumizers. They don’t have a basic fundamental bullish or bearish bias in their algorithms. They pump up the volume and therefore make price moves more distorted.  Technically, many of the algos they use do become more bullish when markets are oversold and bearish when they are overbought.

Fundamentals (example earnings) and Manipulators (example – Central Bank intervention) move markets. Technicals offer guidelines on how those markets will move. (example overbought = bearish, oversold = bullish)

Technical Forecasting Tools

  • Our primary technical forecasting tool, the McCellan Oscillator fell dramatically from 67 to 34.04. Moderately overbought = NEUTRAL/Bearish
  • Our secondary forecasting tool, the Put Call Ratio, fell to 1.12 = NEUTRAL
  • For more on these two indexes click on STRATEGY section on top of page.


Reading Tea Leaves

  • Our technical bias (MO &PCR), in the short term, is moderately bearish. – Translation – If all the fundamental news was neutral, the market would probably go down


Paul’s Corner

Wednesday started out on a positive note, then in the afternoon a Fed Beige Book report wasn’t well received and news out of the Euro War Zone turned negative about 2PM and down went the market. Until Greece settles it looks like an unsafe market.

GMCR has sure been getting tossed out like a bad brew these past few days. The trouble started after a David Einhorn presentation. He specializes in short sales.

Read his report.

Even with Wednesday’s soft action on the tech stocks many are starting to show life.  Here are a few to look at:

ATML Atmel Corporation designs, develops, manufactures, and markets a range of semiconductor integrated circuit (IC) products. The company’s Microcontrollers segment offers various proprietary and standard microcontrollers, such as embedded nonvolatile memory, integrated analog peripherals, and capacitive touch controllers

BSFT BroadSoft, Inc. provides software that enables fixed-line, mobile, and cable service providers to deliver voice and multimedia services over Internet protocol (IP) based networks.

IACI IAC/InterActiveCorp engages in the Internet business in the United States and internationally. The company operates in four segments: Search, Match, ServiceMagic, and Media and Other. The Search segment develops, markets, and distributes various downloadable toolbars; provide search, reference, and content services through its destination search and other Websites, including and; and aggregates

KLAC KLA-Tencor Corporation designs, manufactures, and markets process control and yield management solutions for the semiconductor and related nanoelectronics industries

RAX Rackspace Hosting, Inc. operates in the hosting and cloud computing industry. It provides information technology (IT) as a service, managing Web-based IT systems for small and medium-sized businesses, as well as large enterprises worldwide.

RNOW Rightnow Technologies, Inc. provides cloud-based customer experience software products and services.

SIMO Silicon Motion Technology Corporation, a fabless semiconductor company, designs, develops, and supplies a portfolio of multimedia data processing, storage, and transfer solutions primarily for consumer electronics applications

SPRD Spreadtrum Communications, Inc., through its subsidiaries, operates as a fabless semiconductor company that designs, develops, and markets baseband processor and RF transceiver solutions for wireless communications and mobile television markets. SPRD is a Chinese company.

Stocks listed are for education only. No buy sell recommendations are made or inferred.


Investors411 LONG Term Investments

Each day Paul (change setting from profile to activity) offers up to the minute commentary on the markets & YSL #5 in the Comment section of the blog. Catch his Paul’s Corner every Tuesday and Thursday.

Our Hedge Investment - Theory – Technology will do better than financial sector over time. Thus hedge is set to hopefully work well in both up and down markets.

  • Short Financials – Investors411 will use ultra short SKF (opened at 78.91 – sold at 71.51).
  • Long Technology - Investors411 will use ultra long QQQ (tech’s) QLD (opened at 81.13 – sold at 87.48)
  • The last half of this trade was sold or less than a -1% loss = Total lost /gained of entire trade = 0%
  • Why it was sold – See editorial above. Financials have a major advantage NOT using mark to market accounting and continued support from central banks. No trend was developing in this trade.

Taking it on the Chin.

After four very successful YOUR Stock List, the 14 stocks in YSL #5 is taking it on the chin.  The reasons

  • Two days ago CROX had a bad earnings report and fell -39%
  • Yesterday GRMC suffered from a poor forecast by a major analyst and fell -13%


Long Term Outlook

3 to 6+ months


*Investors411 has 5 different long term valuations - BULLISH, CAUTIOUSLY BULLISH, NEUTRAL, CAUTIOUSLY BEARISH, and BEARISH.

* Everything written in BROWN is a repeat from a previous day(s)




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