Lori Wallach

Free Trade

Whenever you hear the sale picth its Free, warning bells should go off in your head. The same is true for branding concepts like Free” Markets and Free” Trade.

“Free Trade” is simply a branding concept used by major corporations and their politicians (From Obama to Bush)  Let’s use a few examples -

  • NAFTA the supposed free trade agreement of the early 90′s between the USA – Mexico and Canada cost the USA 879,280 jobs between 1993 & 2002.
  • Our supposed free trade deal with China – We tax Chinese goods at 2.5% and they tax our goods at 25%
  • Now we have a supposed “free trade” deal with with 3 more countries.  Example Panama – A global tax haven and money laundering center for major corporations/banks

Here’s the LINK to a short video by Dylan Ratigan featuring former CEO of AT&T and Lori Wallach from Public Citizen Even when you factor in the lower prices of goods from abroad the average American looses” $7,000 a year” from the 11 “free trade” agreements.

Corporate America dumped more jobs during the 2008 meltdown than any other time in history. Wall Street is recovering nicely, but Main Street America still suffers. How can Americans fix any deficit without jobs?

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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

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Index Percentage Volume
Dow +1.63% Up
NASDQ +2.22% Up
S&P 500 +1.63% Up
Russell 2000 +2.29% -

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Technicals, Fundamentals & Analysis

Shorter Term Outlook.

day/days/week

  • Moderately oversold US equities (-48 on the MO) had a big time rally in increased, above average volume.  News of some more rational Senators (Gang of Six – 3 Republicans and 3 Democrats) coming up with a debt solution that Obama would likely accept added rocket fuel to the rally.

Apple Pie

  • APPL hit yet another earnings run earnings report after the market closed and is was up over 6% in after hours trading = Bullish. For those of you who think Apple is mom, USA and apple pie. 62% of Apple’s earnings come from abroad.
  • Today is the confirmation day of yesterday’s rally. Holding onto the rally or making further gains is bullish. Tech giants GOOG, AAPL, IBM and others are getting showered with profits . All are adding job after job abroad
  • Wall Street was sending a message to politicians over the debt crisis yesterday. Any hope of a bipartisan resolution is going to send stocks higher and a breakdown is going to send stocks lower. As mentioned two weeks ago – “If the US debt default starts to hurt stocks, politicians will fix the problem rapidly because their campaigns are all funded by an elite oligarchy of insiders.”
  • Two of our most successful technical forecasting tools listed below
  • The McClellan Oscillator (MO) chart fell dramatically to -13.73 (-30 somewhat oversold, -60 oversold, -90 OMG oversold. The more oversold we get the better the chance for an oversold rally) Lots of room for MO to move higher or lower = Neutral
  • $USD The Dollar fell -0.35% yesterday (+/- 0.50 is a significant move and the dollar is usually a contrarian indicator) Price chart shows we are in a month+ long trading range.  For stocks= Neutral
  • Reading The Tea LeavesFrom yesterday-48 on the MO, is usually a figure that oversold stocks bounce higher from. But how high and far is up to the the fundamentals of Europe and US debt.”  -14 on the MO means there is a lot of room for stocks to roam. Solid earnings in techs are bullish, but all eyes still on US congress.

Longer Term Outlook

weeks, month, months

  • RepeatIt’s impossible to accurately predict how the politically manufactured Kabuki dance over the debt will end. Therefore, hanging in their with a NEUTRAL Long Term Forecast. However, perception slightly favors bulls.

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Current Positions

Below – Investors411  hypothetical portfolio that should outperform the S&P 500.

NLYAnnaly Capital Mgt. Ultra high dividend stock - Has dipped down into buyable position. Caution if we do have meltdown over debt crisis this stock will take a hit.  However through 2008 meltdown it still produced a double digit dividend.

GLD & SLVStill waiting to buy. Will announce when in comments section of blog. Their price is linked most notably to US debt kabuki dance in congress. If we achieve a rational compromise, then gold will come down to a safer level to buy.

Disclaimer Personally I own  a group of dividend stocks (also a couple other long term investments) including NLY and have placed puts on some of them and ETF’s. JS in the comment section has used the term “insurance” to describe the way “Puts” are used protect long term investments. – email me if you want to know more or post a question in the comments section.

I firmly believe you can make money with BOTH long term investments and short term trades. See POSITIONS Section of blog for ideas

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Look for an enlightened Paul’s Corner every Tuesday & Thursday and the always informative Comments Section every day.

Don’t forget to send in your stock choices fro our new Stock List #5

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Longer Term Outlook

NEUTRAL

AS ALWAYS, DO YOUR OWN RESEARCH BEFORE INVESTING

ALL TRADING INVOLVES RISK AND POTENTIAL LOSS OF PRINCIPLE

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