Housekeeping – I’ll be away for next 3 trading session. Buying a portable computer to keep Investors going for next trip. Today we have Guest Editorial by Yankee Bob . You can read entire unedited piece in comments sections. (Bolding mine)

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Fixing The Budget

When you consider that we fight the wars, spending that is off the books, that many fortune 500 companies find ways to pay no taxes, (there is only a minimum tax on people not,corporations); it’s no wonder we have a deficit.
How many trillions has the Bush tax cuts deprived the Treasury? The share of US treasury revenue from corporate taxes when Ike was in was above 30%.
Now I think it’s less then 20%.  Did these tax cuts for the corporations result in more jobs? NO!!! It results in huge pay for the executives.

A 5th grader could balance and probably pay down our debt but the corporate press has us convinced that it’s hard or impossible to do.  Solutions-

1, Make corporations pay the same rates they did under Ike.

2. Stop the ridiculous subsidies to the fossil fuel community{like they can’t afford it and no one would look for oil anymore if you did} And stop the farm subsidies that are handouts to big Agra.

3.Stop the Wars and bring the troops home. Reduce  our troop and base presence in the world. We have a staggering number of bases and troops all over.

4. Stop the madness of spending on Defense and Homeland Security . Most of it is a waste. A lone gunmen ,a carful of terrorists with a book of matches or a stick of dynamite is a real threat that our expensive military hardware is useless against. In fact, with the fall of the USSR, what is it for?  How many thousands of homes in the California deltas that are already crumbling from our lack of maintenance could a careful of terrorists take out with  just low level explosives,or nationwide; the electric grid, major bridges, fuel depots  and chemical sites.  How much havoc could they cause with a pack of matches in California in fire season? Remember the panic the pair of assassins caused about 6-7 years ago on the East coast?  I’m not saying that there is no terrorist threat. I am saying that it has been overblown and that the systems and  super weapons we have  are incapable of protecting us. So,why are we spending so much so unwisely?  Why have we been made to surrender our Rights and Liberties when the threat is so overblown?

5. Restore the tax stream that the Bush tax cuts  took away from the Treasury Revenues
and put in the inheritance tax for the super wealthy.

6. Take the limit on payroll taxes off . Is there a more regressive tax anywhere? We get taxed up to about $100,000 and then those that make more then that don’t have to pay anymore. We have to listen to endless drivel from the right that Social Security has to be cut back and that it’s an unfair tax on young workers! How about  having the over $100,000 a year people pay the tax on their whole salary,including stock options. The shortage or crises may be real but the solution is simple. Just extend the tax. It’s as contrived as California’s revenue problem. They limited their property tax abilities and then they end up with deficits and the feds have to help them. Why can’t they get rid of their proposition 2,I think it was.

Do a few of these and  not only would there be money for all.  It would probably pay off the debt, too.  A 5th grader could do this. But,it is not going to happen .

Have a different View? Is Yankee Bob right?

How would YOU fix the deficit and stimulate economic growth?

Send your view into comment section of blog.


KISS & Stocks (Keep It Simple Stupid)

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


Index Percentage Volume
Dow -0.03% up
NASDQ -0.32% up
S&P500 -0.42% up
Russell2000- -0.96% -

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

Technicals, Fundamentals & Analysis

See Positions , Strategy , and Overview for changes made over weekend.

An Apple Computer led rally disintegrated in the last 2 hours of trading. Markets ended up down slightly in INCREASED volume.  Pretty much Monday and Tuesday canceled each other out. But the fall has stabilized.

Volume, our #1 technical forecasting tool, has indicated a major reversal is potentially underway. Three+ big volume combined with major declines shows major players heading for exits.  You need some sort of major fundamental to turn this around.  Apple computer (technology) seems to have failed, despite some very good news.

Three major fundamental problems confronting markets.

  1. China is trying to slow down growth through bank limiting loans. China has led the world in economic growth.
  2. Obama’s State of the Union may focus on ways fixing too big to fail institutions
  3. Jobs report last month rose from +5,000 (Nov) to -85,000 (Dec) . Weekly reports are more supportive of the -85,000 number or worse.

Significant indexes

  • McClellan Index at -73.75 =  still significantly oversold.  (see Sunday’s Investors411 for more analysis)


The  Positions Section (also at top of blog) has the latest buys and sells (Usually updated over weekends)

These are positions I actually own


ETF Watch List

Investors411 has cut back on lots of positions – Example FXI (China) 24% to 6% of portfolio total. See Positions of 2009 Investors has moved from over +70% invested to @ 35% invested over the last month or two. Wish we were now less invested, but not going to cry over spilled milk.

If we were down to 10% invested I would be buying. Did purchase a 3% of portfolio position in ROM (an ETF that does 2x what tech stocks do) I put a 6% stop loss on this.

  • FXI (6% of portfolio) China – major technical breakdown of “head & shoulders trading pattern. Bought at @40 Now at 39
  • EWZ (16% or portfolio) Brazil – Between 50 & 200 day moving average, but in correction. Bought at @ 52 & 59. Now at 67
  • MOO - (10% of portfolio) Agriculture stocks – Moved below 50 day MA. Bought at 42 Now at 42
  • ROM (3% of portfolio) – 2X what tech stocks do. Have a tight 5% stop/loss order on this. Short term play. Just bought.

See Sunday’s analysis.

The problem here is if US stocks go down another 5 to 10 % – Brazil & China because of their volatility will double this. Tough call since the McClellan Oscillator now at -74 but has reached -120 last November.

So lets take profits on @1/3 of Brazil EWZ off the table. I do believe we are closer to lows , but no one ever went broke taking profits.

See POSITIONS (scroll down) for details on above and what’s under consideration for 2010. Sorry have not had a chance to work updating this last weekend and will not this weekend either.

Long Term Outlook = NEUTRAL


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