Whose getting the preferred treatment? Shadow banks/institutions like Citbank or American manufacturers like GM – A cartoon. Fixing the Financial News Channel- CNBC – Remember Jon Stewart’s drubbing of Jim Cramer? Now comedians are banding together. A fearless market forecast- wear your rally cap.

cartoon credit – Daryl Cagle

Fixing Financial News – CNBC

The major financial TV channel, by far, is CNBC. We all remember when Jon Stewart opened a can of whoop ass on its most politically moderate host Jim Cramer. The hosts of the rest of the shows like Cramer are  basically cheerleaders for their advertisers - Wall Street

Now a group of comedians is doing something to fix the biased network. “Jon Stewart made the case, now we’re demanding action.”  A funny 4 minute video, but more importantly 20,000 people and economists have asked CNBC to start holding Wall Street accountable. 

You too can sign up to make financial journalism accountable atFixCNBC.com

Together we can make a difference – take a minute and sign the petition – In the long run it will protect your money, our economy and your job if we have less biased financial reporting.

(Sorry yesterday’s link allowed for no comments and it took a long time to appear- I have no idea what went wrong.)

 

AS ALWAYS DO YOUR OWN RESEARCH BEFORE INVESTING

STOCKS


Index Percentage % Volume
Dow +0.61% flat
NASDQ +1.86% down
S&P500 +1.81% up
Russell2000 +2.41% -

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Technicals & Fundamentals

 Markets moderately moved higher yesterday. Volume was well below average.  Therefore volume offered NO confirmation of the price move.  

Overall this week looks like a consolidation of the previous three weeks gains. Just what you want is you’re a bull.  The chart to watch is XLF (ETF for financials – See below) Usually after a big move & then consolidation, stocks continue to move in the same direction,  This should make bulls happy.

Baltic Dry (Sea) Index - (see chart link on side of blog)  Measures flow of goods/trade and is a leading economic indicator.

Since 3/10 the BDI has fallen each day and yesterday was again  no exception. Another @0.20%  Total loss from high more than 31%  How many days in a row can an index fall?  Right mow it’s 21 trading days in a row.  The rate of change (fall) has slowed dramatically.  We could be seeing a  bottom here.  This would be positive for markets

Reading the Tea Leaves - Same mantra - As long as  Shadow Banks/Institutions are going to get bailed out by taxpayers instead of bond/stock holders then the rally is on. That seems to be the direction Geithner Summers & Bernanke are headed. Trillions in wealth is changing hands.  

Fearless Forecast – The consolidation will end & the rally will continue as shadow banks announce better than expected earnings.   With diamonds, rubies and gold being showered on shadow banks and a big treasure chest to hide accounting procedures in these banks are going to SHINE this earnings season. Its baseball season so put on your rally caps.

Shadow Banks/Institution Watch

XLF (financials/banks) is therefore the key sector to watch. Checkout the chart and technically you will see that the XLF has tried to move above @9.75 for almost 3 weeks and failed. It closed at 9.20 yesterday up +0.55%.

Add Insurance companies  to those receiving bailout funds. Beyond the infamous AIG others are lining up. The reason for the modest rally in stocks yesterday is insurance companies shot up significantly. Story from MSNBC here.

Bottom Line - The more the tax payers bailout shadow institutions and the less transparent they are allowed to be the better these stocks will perform in the short term. The worse it will be in the long term for taxpayers and the national debt.

 

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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