Part 2

Obama’s new CIA Director General

David Petraeus

Petraeus when asked – Who would be your person of the year? – answered Mohammed Brouazizi The Tunisian street vendor whose immolation sparked the Arab Spring. He also gave a nod to Steve Jobs.

What Petraeus has taught is the brute force, so beloved by the right wing and military industrial complex, doesn’t work. In Iraq progress was made when Petraeus endorsed sitting down and talking with former enemies and turning them against those who opposed US forces.

Winning the hearts and minds of an opposing side works far better than  brute force which created more terrorists.



Jon HuntsmanJo

Jon Huntsman

John Huntsman, a true conservative, has taken some outstanding positions is his fight for the Republican nomination for President.

He believes in science – global warming (see below).

As former ambassador to China he understands foreign policy. Huntsman opposes Mitt Romney’s use of brute force and taking China in front of the world court on day 1 of your presidency. It’s  a horrible idea.  It would create a trade war that would lead to a massive recession or world wide depression.

But, by far his most outstanding attribute is Huntsman is the only candidate, including Obama, that has a clear and workable

plan to break up the too big to fail banks.

LINK to his plan

Obama’s plan leaves big shadow banks up to regulators under the weak Dodd/Frank legislation. Matt Taibbi and others have often pointed out regulators are corrupted by those they regulate as easily as congress is by lobbyist.



Systemic Disaster

If a systemic plant wide catastrophe worries you in the slightest


Read this article

Continue to ignore the continuous stream of giant bursting bubbles of methane gas as they erupt into our atmosphere all across vast sections of the globe.

You can see them, smell them, die from inhaling methane gas

But do they really don’t exist?

Ignore  the science and reality that your children will have to face or read the article.






Neuschwanstein Castle – Germany

Torrid Tuesday’s

Yesterday’s sleeping kitty woke up to and in bright red numbers showed you the decline of the 10 year Italian bond, explained how it was linked to the market and the end result was another Torrid Tuesday for stocks.

The other strong influence on US stocks is currently what happens to the stock market most powerful economy in Europe – Germany.

Commodities like oil (+3.74%) and copper (+4.84%) did better than most stocks. So both the significant bond and major commodities confirmed the stock move higher. A bullish sign


Very positive long term move by Fed - “Fed Bolsters Tools To Avert Collapse of Big Firms[Banks]

The number one focus should be having NO too big to fail institutions. Number 2 is you don’t want big institutions to collapse – so you demand better regulations, regulators and more liquidity.


Bottom LineThis is a manipulated market and IF those Italian 10 year bond rate keeps falling, the very real Santa Clause effect (scroll down at link for cause of Santa clause rally) should dominate.

Overnight Data From Europe

Germany’s DAX

Gapped up at open and has fallen @0.60 off its high to +0.90% at –  at 6:00 AM EST

DAX at -o,63 at 8:30 EST

Italian 10 year bond

Opened at 6.69% – 2:30 AM EST

Fell to 6.45% 3:30 AM EST

Rallied back to 6.65% at 6:00 AM EST

Italian bond at 6.84% at 8:30 AM EST




Paul’s Corner

The Charts!

A wild up day yesterday and if what we hear, or don’t hear out of Europe is correct, we might see this rally continue for a day or so. Wouldn’t that be new!

A brief look at YSL charts. Immediately after the symbol is a capital letter A to D indicating accumulation to distribution.  A Accumulation, B Accumulation, C Neutral/Dist., D Distribution.

AKRX (A) Excellent chart, buy any dip

CATM (B) Ok chart, all indicators green

CMG ( C )  basing chart sitting on the 50, aka free parking

DECK (D) broken chart, all indicators red, buy at your own risk

DLTR (B) Ok chart

FTK ( C ) Good chart, going through a buy the dip

HANS (B) Ok chart, buy any dip

HLF (D) declining chart, below the 200, needs to cross up through the 50 for a safe buy

IBM (D) sitting on the 50 in a dip, chart indicators have turned red

IMAX ( C ) climbing chart, below the 200, sitting on the 50

MA (D) Ok chart, buy any dip, above the 50 and the 17.

RL (D)  declining chart, most indicators red

SIMO (B) good chart, trying to break out of a 2 month base, all indicators green

SWI (D) in a dip and not necessarily a buy the dip position, needs time for chart to improve before a buy

TSCO ( C ) basing chart, sitting on the 50, aka free parking

Chart observations are just that, observations and are not buy or sell recommendations!

The winter solstice tomorrow at 12:22 AM,  the days are getting longer and summer is on the way!  Happy trades!



Reading The Tea Leaves


Our #1 technical forecasting tool, the McCellan Oscillator rose from -41 to +0.67 . 50DMA at +7.48NEUTRAL

The -41 reading (= moderately oversold) at the start of yesterday’s trading gave some fuel to the bulls. The MO Index in NEUTRAL shows no advantage for bulls or bears.

For more information on trading strategies see STRATEGY Section of blog.

Italian bonds are on a huge roller coaster this AM. Big move down and back up. Any yield above 6.75% is a danger zone and , of course 7.00% is the panic number.

Secondary indicators like the VIX and a low Put/Call Ratio are showing investors are expecting a rally to materialize.

Short term – Investors411 is sticking with what works – The yield on the 10 year Italian bond. There is a bullish bias, but it will get trumped by the rising price of the Italian 10 year bond. Bears Rule Today – unless the Italian bond falls.

Longer TermThe world needs to find a way to come up a huge some of money to cover the European debt problem (perhaps $4 trillion). We have NOT.




Longer Term Outlook

3 months+




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

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




  • Share/Save/Bookmark