Mental Health Break

From the NYT a photo/video Lens on the World

Absolutely fascinating!

Grant 1949 writes in the comments section yesterday - They just keep finding ways of stealing more money from the people who are just trying to survive… read full comment on right side of blog or here

Yep, It’s frustrating when you see the growing divide between those working just trying to keep their heads above water and the power elite in this country.  Frustrating when only 33 Senators vote to break up the big shadow banks. I agree

Hope we all can take some time out today and just ENJOY!!! Give yourself a Mental Health Break

Check out three of  hundreds photos I loved from the Lens on the World – (If you surf the site it just takes a second to load each photo these take @ 10 seconds)

KISS & Stocks (Keep It Simple Stupid)

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


Index Percentage Volume
Dow -0.34% down
NASDQ +0.03% down
S&P 500 -0.34% down
Russell 2000 +0.85% -

Investors411 record – 5 years of beating benchmark S&P 500 and almost all major US indexes

Technicals, Fundamentals & Analysis

See Positions for changes made each weekend

Stocks held onto the gains made on Monday in expectedly lighter volume. After you have a climax sell off in HUGE volume you expect volume to wind down. = Bullish

The old pattern did NOT returned yesterday, & institutions sold into a 1% rally at the end of the day.  Markets are dominated by huge institutions (Hedge Funds, Banks, Investment houses etc) who all have super fast computers and use trading algorithms. About 1:30 these “black boxes” decided to sell and we ended lower.= Bearish

The benchmark S&P 500 closed  at 1155.79. S&P next major resistance level is the 50 Day Moving Average at @ 1172 and support at @ 1150. This is the major trading range to watch. What happened yesterday was the upper end of the trading range was approached/hit (@ 1172) and the HUGE institutions sold. = Bearish

Great source for what’s happening live in markets around the world & in the US before 9:30 EST Wall Street opening at CNBC Slight upside bias for US right now,Europe, Asia basically up, but this could change in an instant

Significant Indexes

  • McClellan Oscillator fell  to -53.40 yesterday.  [+60 or above = Overbought = sell. -60 or below = Oversold = buy]. StockCharts has a better version of the McClellan chart ($NYMO)LINK. - This is just below OVERSOLD territory = buy = Bullish
  • US Dollar – rose +0.38% yesterday. [Anything over +/- @0.50 is significant.] Mantra - right now The Dollar Rules is very important  Dollar is down from last Thursday’s closing and Friday’s interday high. Still close to breakout levels = Neutral
  • The BID – has broken out to a new 5 month high. The Baltic Dry Index measures the cost or flow of goods/trade between countries. This is positive for export countries like Brazil and China, Goods costing more means trade is increasing = Bullish


The  Positions Section = latest buys and sells – (Revised positions yesterday) - These are positions I actually own

I revised all positions held by Investors411 yesterday. In POSITIONS (Click on the word at the top of the blog and scroll down to 2010)  As part of house keeping I’m going to eliminate the 2009 positions this weekend.

FXI – Investors411 bought this ETF in the China ETF.  This was done based on the volume behind China’s bounce on Monday and the fact that the BDI is rising.  Like most long ETF position there is a 5 to 7% stop loss limit.

Bottom Line - This is a canary in the coal mine investment - if China can NOT move up despite a rapidly improving BDI (see above) then stocks all over the world are in trouble. There are a lot of investors fearful of a China bubble bursting.  We’ll see.

Long Term Outlook = NEUTRAL


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