Kleptocracy

From WikipediaKleptocracy ” is a term applied to a government subject to control fraud that takes advantage of governmental corruption to extend the personal wealth and political power of government officials and the ruling class

Charles Hugh Smith has a worthy editorial. Here’s an outline of the money points. (The editorial will fill in the details)

  • Neither party has any interest in limiting the banking/financial cartel
  • Our stock markets are dominated by insiders
  • The rule of law in the U.S. has been divided into two branches: one in name only for the financial Elites and corporate cartels, and one for the rest of us mere citizens.
  • Just as in Greece, taxes are optional for the nation’s financial Elites.

Just how much would it cost to buy back the congress from Special Interests

A Happy 4th of July from our Kleptocracy


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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 +1.25 Up
NASDQ +1.21 Up
S&P 500 +1.01 Flat
Russell 2000 +0.92 -

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Technicals, Fundamentals & Analysis

Shorter Term Outlook.

day/days/week

  • Fourth straight rally day. Biggest 4 day gains in many many moons is bullish Overall volume just slightly above average today. Repeat - It was, of course,  dominated by the High Frequency Traders (HFT’s)and Bank trading. Most of this trading goes on in dark pools Here’s the video from Bloomberg
  • Technically, the huge 4 day move off a double bottom (prices make a low and test it – see charts on far right) is very bullish If you check out the long term/weekly chart of S&P 500 you’ll find the @seven times a move of this size happened stocks were higher 3 to 6 months later. The dark cloud is there is not as much volume behind this move higher.
  • QE #2 is officially over.
  • The McClellan Oscillator (MO) chart rose to +68.08 (above +30 somewhat overbought , above +60 overbought, above +90 OMG overbought) Repeat - The +50 resistance level has been obliterated = Long Term Bullish In 2010  the MO made it above +70 3 times. In 2009 the MO reached over +100 twice  Short term  overbought = Bearish
  • $USD The Dollar fell  again -0.34% yesterday. (+/- 0.50 is a significant move and the dollar is usually a contrarian indicator) The trend since May 1 is bullish for dollar and bearish for stocks. Big reversal down in last 4 days. Most of this movement is based on Greece. Short term tend for stocks now = Bullish
  • Reading The Tea Leaves - Shorter term  - Repeat- A raging bull is stampeding and right now it looks like the only barrier is that markets are almost oversold and what earnings season might have next month.  MO is at +68 = oversold. Other Indexes I look at are also entering oversold, but not yet at OMG oversold.
  • Outside the HTF and Trading desks there are a bunch of normal day/swing traders who have missed the rally and are waiting to buy the first dip.

The 4 Day Bull Stampede

Long Term

weeks/months/years

  • As stated above – a huge technical price move higher over the last 3 years has led to a higher market 3 to 6 month later. One cautionthis move has the least volume behind it of the @ seven other major week long moves up in the last 3 years.
  • We still have a gap to earnings season – there have been very few warnings. Fundamentally a negative jobless rate (monthly jobs #comes out late next week) in the USA will impact the US economy far more than stocks. Stock growth relies on emerging markets and the potential problem there is they are growing too fast. The 4 day bull rally is  taking a stand – there is NO worldwide recession ahead
  • Reading Tea LeavesI’ve just finished reading Charles Hugh Smith’s editorials on Kleptocracy and have come to the conclusion that there is no way out government (both parties) is NOT going to back the Major Corporations, and the Uber Wealthy. (Obviously, this view is very close to the one Investors411 has held.)

Our Kleptocracy may screw almost every working class American but it also put a floor under the stock market.

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Your Stock List

Here’s the LINK to a spreadsheet of YSL #4.

Our older YSL #3  outperformed YSL #4. Both beat the benchmark S&P 500. So did YSL 1 & 2

Remember t0 Send in by emails or post in the comment section any choices YOU have for YSL # 5

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Current Positions

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

NLY Annaly Capital Mgt. Ultra high dividend stock

Short term strategy is to short overbought stocks. Bought 1/2 position in TZA. Probably premature.  May sell at open and wait for better entry. A much safer trade is to wait for an MO approaching +90.

Long Term Strategy – In NEUTRAL right now.

Gold/Silver – Almost always when the dollar falls as it has gold rises. It’s not.

Disclosure - I own NLY &  a group of dividend stocks which I have used some short ETF’s to protect. (I’ve cut back on short ETF’s) – I buy all stocks mentioned in the hypothetical Investors411 portfolio.

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

Paul is on break for a couple weeks

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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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