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

Financing Health Care

Poll/chart from Fivethirtyeight

Last week VP Biden announced $155 billion savings in health care with hospitals to help defray the cost of Obama’s heath care plan. This was a giant first step in financing heath care reform. Story here . The $155 billion story was a blip compared to our Michael Jackson/Sarah Palin media obsession.

When has any administration since LBJ come up with $155 billion in health care savings?

Perhaps the best analyzer of polls out there, Nate Silver (fivethirtyeight blog) has come out with a poll showing the way 68% of Americans want to finance health care reform. - Increase taxes on income earners over $250K, Increase alcohol taxes, increase cigarette taxes. See data above and a great analysis of health care reform here

So why isn’t this legislation popular among our Senators and Congressmen? So many are bought and sold by the health care industry.

The latest to get caught in influence peddling was a media outlet the venerable Washington Post. CEO’s and health care officials were among those invited to a sit down with the WaPo and administration officials for $25,000 to $250,000. This meeting blew up when it became public. Story here

If you sit back and do nothing health care costs will continue to rise over 100% a decade.  We will continue be, by far, the most expensive system and 30th to 40th when compared to other nations health care systems on results.

You can either sick your head in the sand, keep getting mesmerized by Michael Jackson/Sarah Palin or do something. Call your Congress person and your Senator. Join a group that promotes reform. I certainly am a critic many of Obama’s decisions, but I’m have no problem in pushing this cause

You can make a difference. But you have to stand and fight . The only way they win is if you do nothin g . Make the call, join the group or donate some $. NOW



Index Percentage % Volume
Dow -0.45% down
NASDQ +0.20 % down
S&P500 -0.40% down
Russell2000 +0.36% -

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

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

Technicals and Fundamentals

Note - Repeated statements in brown.

After falling, as predicted, to the S&P 875 support level, the bulls have reinforced the barricades and held their position for the last two days.  The longer they hold out the stronger the bulls position becomes.

Volume our #1 forecasting tool has been almost totally useless.

Earnings week usually trumps everything else - Perhaps the biggest report is Intel on Tuesday. If the tech giant ‘s forecast is positive we could see a rally continue. Financials are probably going to continue their charmed existence, because the Obama administration has deemed the big ones too big to fail and they keep kicking the can down the road on any major fix of the problems that created the economic meltdown.

Significant forecasting tools/Indexes for stock markets

BDI The Baltic Dry Index measures the flow of goods (world trade) . BDI fell for the 8th day in a row.  However, the rate of decline has slowed dramatically.  This chart works a little different from most other charts in that it is a lot smoother and less volatile. The fact that the decline rate has dramatically narrowed is a positive for bulls

Unfortunately, over the last six weeks we have a series of lower high, lower lows, and a broken support level. That’s positive for bears. Over the last six months we have dramatically risen off the lows – Long term  Positive for bulls

In a nut shell the BDI is

  • short term  - seems to be turning bullish (emphasis on seems )
  • mid term – clear bearish pattern
  • long term - bullish pattern

$USD - The Dollar is still in its in its 5+ week long consolidation pattern between $79+ and 81+.


Fearless Forecast for the Wee k

From Last week The S&P resistance level (@875 & SPX now at 896 )  should at least get challenged, especially in the beginning of the week. Watch BDI. Forecast – Bears Rule Investors411 shot and scored on last week’s forecast.

This Week’s fearless forecast Remember this is reading tea leaves. So far investors have not reacted well (buying or pushed stocks higher) to some reasonably good news last week. There is a bias with the bears The bulls support level (SPX @875) gets stronger each day it holds.

The bottom line comes down to the mother of all chip stocks Intel’s  earnings forecast . Financials are going to do well (under the Fed’s Obama administration’s protection) The BDI looks like it may be turning higher. Both bulls and bears have some powerful weapons right now as stated above.

So when it come down to "there is no clear direction " you manage risk. If support levels fall for the bulls there is a big chance for a big fall. Good news has not pushed markets higher in the last week, so it looks like there will be no huge rally.

Often the bottom line is "Don’t loose money." – So Investors411 is just going to hold tight. We’ve sold a lot of positions recently and will have to play this day by day. If Intel rallies Investors411 will add to portfolio. Also a buy the dip opportunity may arise.

Fearless Forecast – So expect a rise with some financial stocks reporting early in the week and that rally to get tempered later in the week


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


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