IntroducingSmack Down- A top ten list of  ”toxic” politician’s personalities, groups,  or even ex girl/boy friends that deserve to have a can of whoop ass opened on them; Kissing the Pope’s ring – another Republican apologizes; Have you puked yet? – Roller Coster stock markets; &  Shadow Banks Rule Wall Street.

 

The Hulk from Marvel comics – by Brian Hitch (source Wikipedia)

                     SMACK DOWN

Investors411 has gone to great expense to hire The Hulk to Smack Down anyone or group YOU think deserves to be knocked off his/her pedestal.

Just because this blog focuses on economic trends doesn’t mean you have to. Send your nomination(s) to the comments section of the blog. 

 If you can’t find the comments link at the bottom of this post go to top right of blog and click on “Subscribe to RSS.” A list of previous post will come up and click on one blue headline. An old post will come up and scroll down to comments section. (sorry my trusty tech is still working out the bugs) 

Alan Greenspan – The Jolly Green Giant -(my choice) This guy was put so high on a financial pedestal that it reached up into the clouds. He, more so than anyone else, could have stopped the greedy “free market” shadow banks and others.

Alan Greenspan

The SMACK DOWN LIST

#1 Alan Greenspan

#2

#3

#4

#5

#6

#7

#8

#9

#10

 

                   Kissing The Pope’s  Ring

Another Republican Representative who dared to call the leader of the Republican Party, Rush Limbaugh, something other than his “His Holiness” has genuflected and apologized. All these nabobs of negativism like Limbaugh do is stand and throw stones. The once great Republicans (Party of Lincoln, Teddy Roosevelt etc.) has been reduced to is labeling these hate monger’s as “a great leader of the conservative movement.”

STOCKS

 

 


Index Percentage % Volume
Dow +1.63% flat
NASDQ +2.22% down
S&P500 +2.13% down
Russell2000 +3.88% -

 

Technicals & Fundamentals

Forget all about the major indexes – What happens to the shadow banks (financials) absolutely dominates stock  trading.

Yesterday Tim Geithner played dodge ball in front of Elizabeth Waren’s TARP Oversight Committee. This gave shadow banks hope that all the profits would be privatized and the risk socialized (payed for by taxpayers)

Yesterday was a Geithner rally.

XLF - The ETF that tracks financials (mostly shadow banks) rose +7.40% in increased volume.  Financials have lead this rally and if they  collapse so will almost all other sectors (see Positions section of blog on XLF) This leading index is the one to watch.

Short Term Outlook - Second technical chink in the bulls armor appeared Monday – another big volume sell off.  Volume, the #1 confirmation factor of stock price moves. But Tuesday’s bigger volume (for FLX) means we are one again going up on the roller coaster and gives hopes to bulls.

Too early to make a call on which way this may break, but short term traders should pay attention. The Danger signs to watch for - more 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 (or sooner) – a test of lows could happen.

For tradersIf you really want to gamble – The ETF’s that do 3x what the shadow banks do long – FAS and 3X what financials do short FAZ. This is for those of you who have experience trading covered calls.


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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