Fukushima Damage

Meltdown

Yet more stories of greater than expected damage. Reactor #1 at the troubled Japanese nuclear plant has melted fuel rods. Here’s the money quotes from the Reuter’s story.

  • “One of the reactors at Japan’s crippled Fukushima nuclear power plant has a hole in its main vessel following a meltdown of fuel rods, leading to a leakage of radioactive water”
  • U.S. nuclear experts said that the company may have to build a concrete wall around the unit because of the breach, and that this could now take years.”

“Years” to contain the radiation. Already if you live 10 miles from the plant you are allowed two hours only to retrieve your belongings and have to wear a protective suit to enter the area for those two hours. Anyone who has seen the moving graphic (scroll down) of the radiation plume has seen that plume mostly go over the ocean but also its blown back across central and northern Japan.

The damage has been constantly underestimated by officials, but not by this blog. Year’s of significant amounts of leaking radiation is a clear possibility or probability.

“Crackpot” Senator

” When the devoted follower of crackpot cult leader Ayn Rand gets elected to the Senate, you wind up having Congressional hearings filled up with feverish reasoning like this:Link to video and editorial on Senator Rand Paul (Republican TN) The problem here is much of Wall Street worship’s Ayn Rand who wrote “The Virtues of Selfishness” The video is less than 2 minutes. Check it out.

Paul says if you think you have a right to health care “it means you believe in slavery.” So everyone who believes in medicare believes in slavery. There are some concepts Libertarians/Ayn Rand worshipers (and a Tea Party darling) have right. (example – end empire building) but when you peal away the outer shell its the core beliefs of leaders like Paul that are something rational, reasoned individuals must be aware of.

FYI – Republican congressman Ron Paul (Rand’s father) has officially launched his bid for president.

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KISS & Stocks

(Keep It Simple Stupid)

If you don’t understand a term look in up at Investopedia.com dictionary

AS ALWAYS, DO YOUR OWN RESEARCH BEFORE INVESTING!

DOUBLE CHECK ALL DATA, I MAKE MORE THAN GRAMMAR MISTAKES

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Index Percentage Volume
Dow +0.52% flat
NASDQ +0.63% down
S&P 500 +0.49% down
Russell 2000 +0.82% -

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Technicals, Fundamentals & Analysis

Investors411 record - 6 years of beating benchmark S&P 500

  • Weekly jobs numbers came in worse than expected, but not as bad as last week. Two week trend is negative.
  • Economic data for yesterday was poor and tech giant CSCO was down 5%.
  • All this bad news is not negative for the markets, because it means a greater likelihood of some king of managed/manipulate/liquidity driven Fed program will be reintroduced after June 30th.
  • The Fed money supply finds its way into stocks each day.
  • MantraManaged/manipulated markets distort traditional technical & fundamental analysis because of the continued introduction of new market capital. Bad news is good for stock markets again and again and again. – Yesterday is just latest example.
  • What’s happening in Europe very important. Shorter term -The Euro is falling, so the dollar is getting stronger. Longer term – obviously economic hardship in Europe impacts the world.
  • Euro is rising abroad today. Domino’s –  Euro rises = dollar falls = stocks rally

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Shorter Term Forecasting Indexes

There are hundreds of forecasting tools, – These two tools have worked

When they stop working Investors411 will use other Indexes

  • The Dollar (USD) [Any daily price move over +/- 0.50 is significant. Dollar usually moves inversely to stocks] Dollar flattened +0.11%yesterday. Third major move higher in 6 day has created a short term bullish trend. Long term trend is still bearish for the dollar. For stocks shorter term trend = Bearish
  • McClellan Index(MO) [The very rough guideline is over +60 = overbought market = sell positions or short stocks, & -60 = oversold market = buy stocks .] Mo rose  to +11.41. Still in the middle of its range. Almost equal room to rally or fall = Neutral

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Dividend Stocks

More in this continuing series early next week. See part’s 1 & 2 by using calender at top of blog. Click on May 9th & 11th.

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Positions

Reading The Tea Leaves – Long term outlook below is still CAUTIOUSLY BULLISH and has been that was almost every day since QE #2 started in November. Shorter term forecasting tools

  • The dollar – Stocks have held up quite well despite the short term rally in the dollar. This may continue as long as Fed POMO liquidity keeps managing/manipulating stocks higher. Without quantitative easing (POMO) the dollar would probably rise a whole lot faster
  • MO has been in neutral the past couple days and given no strong overbought or oversold signal. So this shorter term forecasting tool is parked in Neutral

Analysis – Overall long term, remains the same CAUTIOUSLY BULLISH, probably will till the Fed QE2/POMO ends on June 30th. All the printed money has to have somewhere to go and stocks have higher yields than the near 0% interest rates of banks and better but still meager yields of bonds. If US stocks falter after 6/30, there will be strong pressure to continue to have some sort of liquidity program by the Fed.

UUP - The tracking ETF for the dollar still the index to watch. Dollar up significantly = stocks down

Disclosure - I have personal ETF positions in REMX and manage a fund that has a 5+ year position in GLD. I also own NLY and AGNC mentioned above

“I have a position” = Either I own it personally or a member of my family does.  I also manage an account for a non profit organization.

The Investors411 Portfolios – See POSITIONs Section of blog. – Click on word POSITIONS at top of page.

  • REMX – Still trading above 50 day moving average which would be a buying point if your interested in owning rare earth mining companies.
  • NLY and AGNC (two recommended high dividend stocks) still too far above 50 DMA to buy. Have buy order for NLY at 17.70
  • YSL stocks according to longer term market outlook CAUTIOUSLY BULLISH are  in a position to buy. Shorter term Investors411 feels a lower MO is a superior buying position. Also each stock individual performance obviously matters. See Paul’s remark’s on right side of blog.

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Check out the advice, recommendations, analysis by bloggers on stocks,politics and trends in the comments section of the blog  Many of the best concepts regarding YOUR Financial Future are discussed their. Watch for Paul’s Corner every Tuesday and Thursday

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Longer Term Outlook

CAUTIOUSLY BULLISH

AS ALWAYS, DO YOUR OWN RESEARCH BEFORE INVESTING

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