WHAT’S UP? – Religious terrorism; George Tiller, Randell Terry, Bill O’Reilly, Rachel Maddow, Frank Schaeffer, Army of God, & others – Breakout – Change to CAUTIOUSLY BULLISH – Our positions still outperforming. 

Religious Terrorist Victim

-

"A Voice for Choice" video by "Alligator Cowgirl Productions"

Dr. George Tilller – photo from Goggle

Yesterday many American newspapers headlined the  death of the pro choice abortion Doctor George Tiller who was gunned down by a pro life terrorist in Tiller’s own church. Some significant points on the Anti Abortion terrorists, their groups and supporters.

  • Scott Roeder his accused killer was associated with a group  called – Prayer and Action News
  • Another organization Roeder was associated with  - Operation Rescue.
  • Operation Rescue leader Randell Terry “celebrated” Tiller’s death.
  • Operation Save America is another radical pro life group.
  • The Army of God actually praises people who kill anyone associated with performing abortions.
  • Radial right wing talk show host Bill O’Reilly (and others) constantly denounced Tiller (28 times) with phrases like “Tiller the baby killer” fomenting hatred toward him
  • Frank Schaeffer, author of “Crazy for God”  a former Pro Life leader explains how privately pro life leaders encourage force against pro choice people to change their views. He holds O”Reilly responsible.  His editorial.

For more on this see the Rachel Maddow show video (first 20 minutes) 

Bottom Line -

  • We have a whole lot of politically radical mentally unbalanced people in the USA 
  • We have a whole lot of guns. 
  • We have a whole lot of people who, like O’Reilly, are rewarded for preaching hatred 
  • Fear mongering = better media ratings 

From George Tiller to Barak Obama there are a lot of people who are targets.

 

STOCKS

AS ALWAYS, DO YOUR OWN RESEARCH BEFORE INVESTING

Index Percentage % Volume
Dow +2.60% down
NASDQ +3.06% up
S&P500 +2.58% up
Russell2000 +3.94% -

-

Technicals & Fundamentals 

From Monday “This market wants to rally. It sure looks like we will break out of month long trading pattern this week”. The NASDQ (technology) & Russell 2000 (small cap stocks) have taken over the leadership roll. In longer term bull markets the NASDQ and Russell usually lead.

The benchmark S&P 500 not only broke out of its consolidation pattern it closed above its 200 day moving average. Both technically very bullish signs.

Volume is still not cooperating with the price move. Only the NASDQ saw increased and above average volume. The fact that technology instead of financials has taken over leadership is important. To sustain a rally you need “sector rotation” where first one sector leads then another.  For the last 3 months its been only financials.

XLF - The ETF that tracks financials (mostly shadow banks ) rose +1.06%. Financials had been the leading sector and techs (NASDQ) have taken over that position. 

WTIC - Oil prices again rallied +3.42% at $68.58. Energy related stocks kept the rest of the US markets from loosing more ground. As stated before – “Higher oil prices are an indication of economic recovery, but also hurt that recovery because it means energy prices will rise.”

At some point oil prices gushing higher has to negatively hit stocks. I thought $60 was that level, but was obviously wrong. Perhaps $70 and certainly $80 should bring any stock rally to a screeching halt.

BDI The Baltic Dry Index measures the flow of goods (world trade).  Still rocketing higher (see chart). This is extremely important because one of the greatest obstacles to a worldwide recovery is the lack of trade between countries (protectionism)

Reading The Tea Leaves -  FROM YESTERDAY“Looks like we are going to break out of the consolidation pattern to the upside this week… Tech is driver’s seat.” 

We had our breakout Monday and as long as the major indexes stay above breakout levels Long Term Outlook will stay CAUTIOUSLY BULLISH   It’s the 3rd quarter GDP that matters and we will not start seeing results for that till just before Labor Day. So it looks like the summer could be decent.

As stated before, we can go from -6% GDP to zero and markets should rally.  The question or long term problem is what happens after that.

Positions - (See positions section at top of blog for more)

  •  EWZ - (Brazil) Waiting for a 5 to 10% dip to reenter this ETF +4.00% yesterday
  •  GLD (gold) is one of the hedges against inflation. Down -0.49% yesterday. DGP is a consideration for more aggressive traders – This ETF does @2X what the GLD does
  • FXI - our major position here  rose +5.78% yesterday. Last two days have seen a 9+% gain. Moving too high too fast. Short term traders should consider selling into any big rally today and buying back in n the dip.
  • GEX - alternative energy - +3.09 yesterday 
  • FAS - 3x financials has been working. This position is for traders not investors. +4.55% yesterday
  • QLD – 2x what the NASDQ 100 does. Looking for a dip to get back in. +6.04%

 From yesterday – “Mea Culpa - We have cashed in on some of our longer term positions recently (EWZ, XLF & QLD)(26%, 23% & 16% gains) and these stocks are still moving higher.  Looks like the pullback/entry point  is simply not happening. I thought stock would not move higher on $60 oil. I was wrong. Looks like oil will hit $70 and perhaps $80 before impacting stocks “

 

Long Term Outlook = CAUTIOUSLY BULLISH

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

AS ALWAYS DO YOUR OWN RESEARCH BEFORE INVESTING !

  • Share/Save/Bookmark