Heroes

Charles Ferguson

Inside Job -  The Charles Ferguson (above) Docudrama lists all the major players from an IMF President & French Finance minister to the insiders who got fired that stood up stood up to Paulson, Greenspan, Bernanke, Summers, Geithner & the shadow banks etc. and told them of the coming economic catastrophe.

What Can YOU Do? - You can Link to The Official Facebook page. It has some great ideas

Sen. Russ Feingold

Russ Feingold – Obama should give Feingold the #1 economic position in his administration. Below is a copy of the letter he sent to his supporters –

Thank you. Thank you for your support over the years.  Representing Wisconsin in the Senate has been the greatest honor of my life and together we accomplished many great things. No one has ever had such a strong foundation of support as I have.  You gave me my backbone.

In the words of Bob Dylan:  “But my heart is not weary.  It’s light and free.  I’ve got nothing but affection for those who have sailed with me.”

Forward!

Russ, Thank you.

Ted Kaufman – Mr Smith Goes to Washington (Joe Klein) Maryland’s appointed Senator who did more to take on Wall Street insiders than anyone else in the Senate along with Russ Feingold. A quote from this article is what I’ve always taught my kids and what this blog is all about.

When I mentioned that many people thought that work was doomed to failure, since the wizards will always find their way around the rules, Kaufman exploded, “Baloney!” Only he didn’t say that. “That is the stupidest argument. It’s like saying you don’t put cops in the toughest neighborhoods because there’s always going to be crime there. We need cops on the street, on Wall Street. Good cops, like the ones in the current Justice Department, Securities and Exchange Commission and FBI. Our problem was that the cops weren’t doing their job. They’d stopped regulating — not just on Wall Street but also food and drugs and in the mining and drilling sector. Look what happened in the Gulf.”
Elizabeth_warren_03
Elizabeth Warren – She’s been featured in Investors411 more than anyone else except the President. The later is obviously NOT on this list. The following lecture on the The Coming Collapse of the Middle Class at prestigious Jefferson Memorial Lecture Series is outstanding. Over 427,000 have seen this interview.  More fun – Warren on Jon Stewart.

If any of you has someone else who stands up to Wall Street and can explain why. I’d be happy to post.

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!

DOUBLE CHECK ALL DATA, I MAKE MORE THAN GRAMMAR MISTAKES

Index Percentage Volume
Dow +1.96% up
NASDQ +1.46% up
S&P +1.93% up
Russell 2000 +2.56% -

Technicals, Fundamentals & Analysis

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

US Stock Markets -

Dollar broke its support level two days ago &took a significant hit yesterday. This confirmed the breakdown through support. So stocks rallied yesterday.

Volume was higher and above average, but not the massive volume you’d usually associate with a rally of this magnitude. Let’s go back to or remember an old mantra – The Black Box/High Frequency Traders control 50 to 80% of the US stock market. This is their rally and its based on the downward plunge of the dollar.(see below)

The BB/HFT are now going to get some resistance from what’s left of regular traders/investors (the other 20 to 50% of traders) and they are worried.

  • Insider selling is at all time high.
  • S&P is at major resistance – this years high.
  • Many Oscillators and Indexes are showing overbought US markets
  • Our own MO while not in overbought territory yet is the highest in over a month.

US stocks used to be controlled by normal investors and traders – If it still was I’d be ducking, covering & selling big time. But its not. See Bottom Line below.

JS in comments section posts an interesting editorial on emerging markets fighting back against the Fed pumping and dumping truck loads of $$$ into our economy. This will be a concern in future and may lead to a currency war. But

  • Mostly all bark and no bite right now from emerging markets
  • China’s currency is pegged to dollar, so they are irrelevant in this.
  • Europe, a slightly bigger economic entity than USA has even less bark.
  • USA rules, in part because oil prices are tied to dollar and we are still (getting smaller each day but) the Big Kahuna

Employment numbers for last month just in +156,000 jobs rate even at 9.6% More here

Significant Indexes

  • The Dollar (USD) [Anything daily price move over +/- 0.50 is significant. Dollar usually moves inversely to stocks] The dollar fell a significant -0.78% yesterday. Dollar currently moving within a range (see below). Now close to breaking down through support levels of consolidation range. Support fell two days ago and was confirmed yesterday. Trend for stocks = Bullish
  • The Baltic Dry Index (BDI) [measures cost of world trade. Also proxy for China, emerging markets, exporting countries]Fell  -1.26% yesterday. BDI now consolidating after bull run that began in June. The BDI has been overshadowed by the dollar moves. Sitting directly above major support. Longer term Pattern now= Bearish/Neutral
  • McClellan Index – (MO) [The rough guideline is over +60 = overbought market = sell positions or short stocks, & -60 = oversold market = buy stocks.] Rose to +36.63% yesterday. Getting close to overbought = Bearish/Neutral

Reading Tea Leaves.

Again Mantra for last two weeks -“Any move in UUP (tracking ETF for dollar) above 22.7 resistance is trouble for stocks. Any move below 22.18 support level is good for stocks. A breakout of either the support or resistance level will tell you who wins the dollar war.” UUP closed at 22.25 and fell -0.17% Another fall like this a strong support level for the dollar breaks.”

This is the last time Investors411 will beat the drum with the above paragraph. The dollar fell through support. If you payed attention to the advise you bought one of the leveraged ETF’s and made out like a bandit. See positions below.

Bottom LineExpect some sort of dip and the BB/HFT’s to rally on that dip because the dollar toasts some more.

As Paul R is so fond of saying “start keeping those stops tight.”

Watch tracking stock for dollar – UUP during day and keep an eye on MO nearing overbought levels

We can all take a victory lap over the recent rally and our ego’s can swell.  But when ego’s swell you loose objectivity to over confidence and you become very vulnerable.

Positions

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

(I do manage 6 accounts that have other positions)

  • EWS (Singapore)
  • SSO (2x what S&P does). Last 1/2
  • EEM (emerging Markets) Bought at 47.05
  • TYH (3X tech stocks) Bought at 41.31 – 1/2 of TYH was sold for 44.10 Almost a +7% gain.
  • DGP (2x gold) Bought at 37.99 -

Again the Mantra for the last week - “Not making any specific move until dollar breaks out of its range. I would look at a breakout higher for the dollar, and a corresponding fall in stocks and the MO to oversold as a buying opportunity for long term investors. “Looks like Wednesday Fed meeting is the big event.”

The MO was near zero and we had the Fed announce a large pump and dump of Quantitative Easing ($600 billion in QE2) so as forecasted many new relevant ETF’s were added. – EEM TYH DGP. These were all bought as the dollar broke down through support after the Fed announcement.

Look for Paul R’s always enlightening remarks on stocks and sectors in the comments section of the blog. See POSITION section of blog for lists of potential stocks & ETF’s including “YOUR Stock List.”

Announcements of purchases/selling can first be seen in the comments section of the blog and/or if you are on the private mail list. If you’d like to get on mail list send me an email – see HELP/EDITOR section of blog

Longer Term Outlook - CAUTIOUSLY BULLISH

AS ALWAYS, DO YOUR OWN RESEARCH BEFORE INVESTING!

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