WHAT’S UP? – Another terrorist attack in the USA – Rachel Maddow editorial on terrorism – O’ Reilly,  Boss Limbaugh, left and right wing anti Semitism, hate groups and those who water them – Obama as the #1 target. – Reading Stock tea Leaves – Change in GEX position – and more.

Terrorism in the USA

Image: Rachel Maddow, MSNBC Anchors

Rachel Maddow Editorial Linked Below

Photo – Virginia Sherwood for NBC

  • Gun loving terrorists ambush/kill 3 Pittsburgh cops. They were afraid Obama may limit gun rights.
  • Abortion Doctor killed by pro life terrorist at his church
  • Army recruiter killed by newly converted Muslim Terrorist
  • Latest headline – Security guard a holocaust museum killed by anti Semitic, right wing, anti government, anti black terrorist, who believed Obama was not born in the USA.

These are the last 4 major terrorist incidents involving loss of life that American Corporate media has splashed on the front pages.  Of course they missed all the deaths/terrorism due to domestic violence.  This mostly involves killing women, who may have it better here than in many other countries, but are still second class citizens in the USA.

Many in the USA are part of a violent, gun loving culture that preaches hate, loves it torture, & and is conditioned by fear mongering. Boss Limbaugh (Talk show host Rush Limbaugh) according to a recent USA Today poll is #1 person on the list of the leaders of the Republican Party (To be fair a majority thought the party leaderless) Limbaugh preaches that Obama is more dangerous that al Quaeda.

Another influential hate monger Bill O’Reilly repeatedly likened the deceased abortion doctor to Nazi doctors and called him “Baby killer.”  Even members of the far the left wing in this country has started using anti Semitic statements referring to all Jews. While its hard to prove a direct link, People like Limbaugh,  O’Reilly and others  water the ground of this hatred.

Is the threat of right wing extremism getting worse? Economic turmoil and our first black president have further enraged the hate. Rachel Maddow has an excellent editorial on her MSNBC show last night.

Obviously, the major target of all these haters is Barak Obama.

STOCKS

AS ALWAYS, DO YOUR OWN RESEARCH BEFORE INVESTING

Index Percentage % Volume
Dow -0.27% up
NASDQ -0.38 % up
S&P500 -0.35% up
Russell2000 -0.80 % -

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Technicals & Fundamentals

$USDThe dollar is the index to watch You could write a book on the dollars influence on everything but for us the bottom line right now is – When the dollar goes down -stocks and oil prices go up and visa versa.

XLF - The ETF that tracks financials (mostly shadow banks ) have been flat for three weeks. Financials has been the leading sector and as financials go so go the markets. Financials are lagging Techs. Yesterday financials down -1 .52%

WTICOil prices closed up +1.89 to $71.33 As stated before – “Higher oil prices are an indication of economic recovery, but also hurt that recovery because it means energy prices will rise.”

BDI The Baltic Dry Index measures the flow of goods (world trade). Stated before -  This is extremely important because one of the greatest obstacles to a worldwide recovery is the lack of trade between countries (protectionism) Down for sixth day in a row, but the rate of decline is slowing. This follows 24 days of going up. So extended moves the normal this index.

Reading The Tea Leaves

Volume has Never really confirmed the breakout we had last week. Even though staying above breakout levels is a confirmation, one would really like to see an increased above average 1%+ gain for major US indexes.  We keep bumping up against another breakout level and failing.

Right now, markets seem to have over extended themselves and a 10% correction would be good in the long run for stocks . Trading is very light except for the NASDQ which is near average. (Summer trading is usually light)

Conclusion – Very light trading – This is a traders market and traders move fast.  Still expect and hope for a slight pull back or consolidation.  As stated before looking for entry points/dips to buy back into  some or all of the following –  QLD, EWZ, IFN and PBW (see GEX below) –

China, India & Brazil are growing and they are leading the world out of the recession. The USA has some “green-shoots” of hope, but there are big long term problems here.

Positions – (See positions section of blog for more)

  • FXI – our major position here rose +2.89% yesterday. This is the third failed attempt at a breakout. FXI was actually up 2=% more almost at a new high and pulled back.  It looks like FXI has formed a short term top.
  • GEX – alternative energy - +0.77 yesterday. GEX is trading at or near anew high for the year. We are going to change to the other major ETF that does alternative energy PBW . This alternative energy ETF is more liquid but its also outperforming GEX. We have been in PBW in past years and went with GEX because it outperformed. This will be a slow transition over the next month. Already sold 1/2 position in GEX and will add that $ to PBW on a small (5%) dip.  Then sell other 1/2 and wait for a dip.
  • The HEDGE – Almost no change. You can get a rough idea how this position does by looking at the difference between the NSDQ and S&P 500 – (-0.03% and multiplying it by 2) instead of looking up SDS and QLD

Long Term Outlook = CAUTIOUSLY BULLISH

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

AS ALWAYS DO YOUR OWN RESEARCH BEFORE INVESTING G !

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