Tom Friedman

Energy Innovation/Solutions

“Welcome to Tea Party America. Think small and carry a big ego.”

Tom Friedman in his latest NYT editorial is endorsing an Obama idea of “a plan to set up eight innovation hubs to solve the eight biggest energy problems in the world.” Obama is asking  for $25 million (“NOT billion) to set up each Energy Innovation Hubs.”

Nobel Prize winning Energy Secretary Steven Chu - “get Nobel Prize winners in physics working side by side with engineers” — not to produce an academic paper but “to solve a problem in a way that will actually be deployed” and do it much faster than the traditional academic model of everyone working in their own silo.

But in Tea Party America you scream, intimidate, cut taxes for the wealthy, promote wars and believe that this snake oil will somehow eliminate future deficits. So “Energy Innovation Hubs” are out of the question.

There’s NO “5 year funding for the 8 Innovation hubs.” totaling $1 billion. Ironically tiny Singapore invested a billion alone in biomedical research. (One reason why EWS is such a good investment)  All the funding our  ”Tea Party” bullied congress could mannage is $22 million for 3 hubs for 1 year.

In Tea Party America science tied to innovating business technology comes in behind screaming, promoting creationism, showing anger, tax cuts for the rich, fear mongering and intimidation. (see – I do read all your comments on the blog)

Solutions & Google

  • Kudos to Google for investing 37.5% of the initial costs in a S5 billion in a wind farm off the Jersey coast.
  • The world’s largest wind farm opened off the English coast last month and on Tuesday Denmark opened another giant wind farm. Denmark gets 20% of its power from wind.
  • Cape Cod billion dollar off shore wind project a big step closer.
  • “Wind could drive 20% of world’s power needs by 2030 with China in the lead.”


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 +0.09% up
NASDQ +o.65% up
S&P +0.38% up
Russell 2000 +0.37% -

Technicals, Fundamentals & Analysis

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

US Stock Markets -

Let’s see what happens today with tech giant INTC that reported earnings last night. Stock futures are climbing on INTC & CSX earnings

Yesterday was all about the QE 2. (see yesterday’s investors411) In the AM a Fed governor said maybe not so much quantitative easing money – stocks dropped. But later the publishing of Fed minutes of their meeting said full steam ahead.  So stocks rallied

Significant Indexes

  • The Dollar (USD) [Anything daily price move over +/- 0.50 is significant. Dollar usually moves inversely to stocks] The dollar fell -o.10% yesterday.  Overall trend of falling dollar trend for US stocks is = Bullish
  • The Baltic Dry Index (BDI) [measures cost of world trade. Also proxy for China, emerging markets, exporting countries] Rose slightly +0.89% yesterday An 8 week bull run, then a two week fall. A very slight stutter and now moving up. Trend  = Bullish
  • McClellan Index – (MO) [The rough guideline is over +60 = overbought market = sell positions or short stocks, & -60 = oversold market = buy stocks.] Fell slightly to +17.71. Still lots of room to move higher or lower. Location= NEUTRAL

Reading Tea Leaves.

There are many indicators that technicians use to measure if a market is overbought. A good number of these say stocks are reaching those levels.

One specifically that concerns me a bit is how far many of the leading emerging markets are above their 50 day moving averages. TUR (Turkey) & EZA(South Africa) are overextended and others that have been started to dip or flatten – EWA (Australia) EIOD (Indonesia) EWY (S. Korea) EWS (Singapore) For a full list see POSITIONS section of blog.  (Check POSITION section for more accurate data.

These secondary emerging markets are leading the world out of recession or at least trying to.

Over extended is over extended. But, a pullback is also a buy the dip opportunity is possibility. It’s not ideal buy because you’d like a lower MO & even though you’ve had a dip – you’d really like a bigger one.

Overall – the same bullish pattern dominates.

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)
  • USO (price of oil/commodity).
  • SSO (2x what S&P does)
  • TYH (3x tech stocks) Bought on the dip at 34.22. (A trade not a long term investment and therefore will sell 1/2 at 5% profit.)

Investors – Both USO & EWS are in consolidation patterns after a big move higher. Like ETF’s listed above, for those that can tolerate risk, possibly a change to nibble on a dip.

Check out Paul R’s always enlightening updates on individual stocks and sectors in the comments sections.

Longer Term Outlook - CAUTIOUSLY BULLISH

AS ALWAYS, DO YOUR OWN RESEARCH BEFORE INVESTING!

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