An Outsider Looking In?



California Nurses Association photo

Rose Ann Demoro has to go outside the USA to be heard  on the health care issue in the USA. From the Ottawa Citizen (Canada) her editorial LINK or another editorial in the London Time s LINK

She finds the distortion – about death panels, the Canadian system, & phony threats to medicare changes "incomprehensible." She faults Obama & Democrats for not pursuing their election mandate. Obama "gambled" that if he compromised he could bring some Republicans along and "effectively gutted" his strongest allies those passionate about caring for others.

Many on the left are starting to look at health care reform as more another corporate give away than reform.

Her conclusion

" Among major nations, only in the U.S. is health care not a fundamental right, but bartered for profit by a maze of health-care corporations. The result is that the U.S. continues to fall far behind other industrial nations in a variety of measurements, from access to care to equality in treatment, and even in the much discussed issue of waiting times for medical care.

While the U.S. spends twice as much as every other nation on per capita health care, there remain more than 45 million Americans with no health coverage and tens of millions more with insurance who are routinely denied medical care because their insurer doesn’t want to pay for it.

Medical bills account for 62 per cent of personal bankruptcies. Half of all Americans skip doctor visits or immunizations for their children because of high out-of-pocket costs, troubling news indeed with the U.S. already leading the globe in swine flu infections and deaths.

The nation’s registered nurses and many doctors continue to press for real change, a national or single-payer system that would look familiar to Canadians and the rest of the industrial world. It is still possible to achieve stronger reform, but time is running out.

Rose Ann DeMor o is executive director of the 86,000-member California Nurses Association/National Nurses Organizing Committee, the largest U.S. union of nurses.

STOCKS

AS ALWAYS, DO YOUR OWN RESEARCH BEFORE INVESTING!

Index Percentage % Volume
Dow +0.04% down
NASDQ +0.01% up
S&P500 +0.10% down
Russell2000 +0.14% -

Investors411 record – 4 1/2 years of beating benchmark S&P 500

(see results for last 1/2 year – click  6/25 & scroll down)

  • Brown = repeat statements
  • Green = usually bullish statements
  • Red = Usually bearish statements

Technicals and Fundamentals

This is a market that is overbought and ready to reverse itself. Again we had a some positive fundmentals (signs of economic recovery) according to CNBC (financial channel). But a rise in the dollar probably contributed to holding stocks back.

For the last 3 days the charts of the major indexes have opened and closed near the same levels. This usually indicates at least a short term reversal or trend .  Because the volume is low it is not confirming the move. However, if you look at volume cumulatively (3 days) it adds up.  So perhaps  small reversal is in the works.

The dollar, right now seems to be key factor in which direction markets move.

Jobless claims, although a lagging indicator, has become important to short term stock prices.

Best read of tea Leaves – This is all the calm before the September storm when everyone gets back from vacation and we get more employment data. If you’re a long term bull a flat market right now is good news because anything that goes up too far to fast usually gets spanked.

Common thought among technical analysts is the markets have risen too far too fast and are due for a correction.

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S ignificant forecasting tools/Indexes for stock markets

BDI The Baltic Dry Index measures the flow of goods by price (world trade) It looks like we could be forming another lower high and that would reinforce the mid term bearish pattern .  The BDI rose +39 yesterday. For right now it looks like the major technical support level is holding. Unfortunately, we have created a lower low that confirms both the mid term trend . The mid term trend since early July is clearly bearish, with a series of lower lows and lower highs. @ 2298 is a major area of support and the BDI has fallen since early June from 4291 to 2468.  This is just 119 points away from a major support level.

In a nut shell the BDI is

  • short term - Bearish pattern
  • mid term Bearish pattern
  • long term - Bullish pattern

Bottom Line Mid term trend is not good for world markets, especially countries that rely on exports. This is why countries that rely on exports are NOT now doing as well as the USA .

While this index does not have as immediate impact on stocks, as the Dollar does, it is very significant to long term worldwide economics.

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$USD - Check out the 6 month chart (to the left) or a multi year chart of the US dollar of the US dollar.

The dollar was rose +0.49 % yesterday. The Dollar is in a range between $79.5 and $77.5 . A breakout to either side will seriously impact stocks. Dollar closed at $78.61. Its  major support level is @$77.5 & it has 2 major resistance levels – a falling 50 day moving ave. at 79.19 and the August highs of @ $79.5.  If it breaks down through support stocks should rise, if it breaks up through resistance stocks should fall.

Mantra Dollar up = US stocks down & Dollar down = US stocks up

This is the index to watch because its impact is immediate.

Positions

The whole Positions Section has been revised (Click on "Positions" at top of blog). Check it out

EWY (S. Korea) was bought at $39.9 and sold at $42.4 for a 6+ gain

All our other outstanding positions that have been held over a month FXI, EWZ, GLD , (gold)  are doing well – especially China & Brazil.

Our new positions in XFL (financials) and SPX (S&P 500) are up a smidge.

Waiting for a pullback to add to positions.

Long Term Outlook = CAUTIOUSLY BULLISH

See Changes in STRATEGY, POSITIONS, & OVERVIEW sections of blog

AS ALWAYS DO YOUR OWN RESEARCH BEFORE INVESTING!

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