Elizabeth Warren?! -  Financial Chicken Soup for Jon Stewart and perhaps our best hope for the future. She oversees TALF – Tempest in a Tea Pot – Nobel prize winner Joe Stigletz with another warning – NASDQ takes the lead – Another Two Faced (see 4/12) Investors411

Elizabeth Warren – Photo from Harvard Law Bulletin

Elizabeth Warren

She’s the head of the oversight committee of the Toxic Asset Relief Program (TALF) Her interview with Jon Stewart is a must for the coming battle over what to do with shadow banks.  There is hope within the Obama administration and this lady is smack dab in the middle of that hope.  

Her money quote “Capitalism without bankruptcy is like Christianity without hell.”  

 Jon Stewart (the best interviewer out there who is unafraid to ask the tough question to power) calls her explanation – “the first time he’s felt better in six month to a year.”  Jon Stewart Video

Please pass this video on to your friends. Obama took 45 minutes on April 14th to explain the same thing in detail – she gives the same hope in 4.5 minutes

Tempest in a Teapot

The far right, on the 15th had an anti-tax tea bag demonstrations across the USA. These demonstrations were endlessly promoted 0n right wing radio & FOX  News.

 According to one well known far right organizer Grover Norquist they had only 268,000 demonstrators.  This pales in comparison to many single location demonstrations like the million man march on Washington.   Again a Jon Stewart Video

One point these  folks have is deficits are bad. But their only answer to everything is cut taxes. Obama was right to cut taxes in a recession on all but the wealthiest of Americans as part of a stimulus plan. The left wing Huffington Post cherry picked some of the worst of these demonstrations (scroll down for slide show)

Joe Stigletz

Nobel Prize winner Joe Stigletz again warns “The Obama administration’s bank- rescue efforts will probably fail because the programs have been designed to help Wall Street rather than create a viable financial system” See Bloomberg news article

 

AS ALWAYS DO YOUR OWN RESEARCH BEFORE INVESTING

STOCKS


Index Percentage % Volume
Dow +1.19% down
NASDQ +2.68% up
S&P500 +1.55% flat
Russell2000 +2.76% -

 

Technicals & Fundamentals

Major US stock markets (and most foreign markets) rose yesterday in mixed volume. The NASDQ continues to lead the other markets (see Positions section of blog - QLD)

 The NASDQ (tech) Russell 2000 (small caps) for the 2nd or 3rd time lead other major indexes and even the XFL. This recent  rotation of leadership is bullish for stocks.

XLF - The ETF that tracks financials (mostly shadow banks) rose +2.13% in increased, below average volume.  Financials have lead this rally and if they  collapse so will almost all other sectors (see Positions section of blog XLF)

Short Term Outlook - Similar forecast to yesterday – First technical chink in the bulls armor appeared Tuesday.’s big volume sell off. A small gain yesterday in decreased volume is not bullish.  

Too early to make a call, but short term traders should pay attention. The Danger signs to watch for - another big price/volume decline  and/or stocks moving lower on no news or good news.

Still bullish in the short term. But think in the longer term, say Sept/Oct – a test of lows could happen. 

Long Term Outlook = CAUTIOUSLY BEARISH

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

AS ALWAYS DO YOUR OWN RESEARCH BEFORE INVESTING! 

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