Poverty Grows in 2008

Another 1.5 million people entered poverty in the world’s richest country last year. A total of 12.7% of the population. Obviously this number will increase in 2009. LINK The amount of poverty in this country keeps growing. Once we all hung together and the middle class grew. Perhaps the single largest cause of growing poverty is the lack of health care.

  • Now we have 14,000 losing health care every day
  • almost 50 million Americans are uninsured
  • the costs of those insured is going up at an annualized rate 8% every year
  • every 30 seconds an American declares bankruptcy because of heath care
  • an army of insurance agents looking for ways to deny coverage to those who have it.

Linking Physical Strength, Intimidation and Anger

Putin

photo – Kremlin/ Presidential Press Information Office

The headline tells it all and this research group uses Vladimir Putin (Russia’s most powerful man) as the prime example. The Miller-McCune group turns research into solution so both the story and its sponsor are of interest. LINK


STOCKS

AS ALWAYS, DO YOUR OWN RESEARCH BEFORE INVESTING!

Index Percentage % Volume
Dow +0.66% up
NASDQ +0.68% up
S&P500 +0.69% up
Russell2000 +6.94% -

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

We recovered almost all of Monday’s losses, but in  weak below average volume . Volume was up just a wee bit. Therefore no confirmation of the price move either way

Significant forecasting tools/Indexes for stock markets

BDI The Baltic Dry Index measures the flow of goods (world trade) It looks like we could be forming another lower high and that would reinforce the mid term bearish pattern .  The BDI fell -70 points two days ago and -90 yesterday. We are about to form another lower low. The mid term trend since early July is clearly bearish, with a series of lower lows and lower highs.

In a nut shell the BDI is

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

Bottom Line This is NOT looking good . While we are still a long way off from major support levels but the mid term (since June) bearish trend is growing. T he case for trade barriers between nations and a growing worldwide recession is getting stronger.

——-

$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 fell -0.60% yesterday and, you guessed it, stocks rallied. The Dollar is in a range between $79.5 and $77.5 . A breakout to either side will seriously impact stocks. Dollar at $78.52

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

A gradual reduction in the price of the dollar is part of the solution to global worldwide recession

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

Still have not had a chance to revise Positions section of blog.  Buying on dips – Smaller positions in FXI (China) & EWZ (Brazil) have been added to. Also an SPX (S&P 500) position has begun to be built on dips .

  • Considering selling the smaller amount of China stock recently added at a loss and a small amount of longer term position on China.
  • Considering Going back into US financials  as a longer term play on dips – If Dems & Obama are going to do nothing to regulate these massive (too big to fail) institutions and continue to throw cash at them – They will continue to make $$$$$.
  • This is shaping up to be at least a 5 to 10% correction.

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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