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“Muppets”

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What Goldman Sachs Calls

Customers – Greg Smith

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This story was first mentioned in the comments section last Wednesday.

It’s out of date, but bears repeating.

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Greg Smith, and upper management leader on  - Why I’m Leaving Goldman Sachs. The NYT editorial.

From USA Today on Banksters

The most important part of its business, generating huge profits, but doing precious little of what banks are supposed to do: provide the long term investment that fuels economic growth.

Investors 411 readers know we run an unregulateds casino financial system instead of a capitalist system. Trillions in wealth have/are evaporating and this has a massive impact on everything  from the deficit to employment.

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STOCKS

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Wall Street Bull & OWS Symbol

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Insight into how Investors411 evaluates stocks, markets and trends can be found in the STRATEGY Section of the blog.

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Headline

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A Stampede

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  • The eighth day of the current short term rally produced a mixed market. This predicted rally comes as no surprise to Investors411 readers. 411 has been CAUTIOUSLY BULLISH for months,
  • We are in a sustained Central Bank (ECB, our Fed and Japan) manipulated rally that began in October. It now, because of jobs numbers
  • Apple looks like its going to pay out a dividend – Announcement today 9:00 AM EST – This will open Apple to a whole new group of investors. Or a big buy back of shares. Both short term - Bullish
  • The long term trend remains (sorry for the repetition) - “Don’t fight the Central Banks - As long as they are dumping liquidity (printing money) to cover up losses anyone who has thought stocks would falter over the last three years has been on the wrong side of this trade.”

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Old Faithful

McCellan Oscillator

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  • Our #1 technical forecasting tool, the McClellan Oscillator (MO) fell to -13.27. (for more see  STRATEGY link at top of blog and scroll down) NO technical pressure on  either bears and bulls = NEUTRAL

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Canary in A European Coal Mine

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  • Italian 10 year bond yield fell slightly to 4.80% (7:30 AM EST) Well below the 7.00% Danger Zone.
  • The ECB is providing the liquidity to keep these bond prices low so the European canary still singing Ode to Joy.
  • Our USA canary in the coal mine - The US ten year T bill broke out of its trading range last week. But leveled off late in the week. Hardly something to worry about yet with at a low 2.30% yield. But rising rates is something to keep an eye on.

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Bottom LineWe reached a level in the US where traders/investors believe the economy might be catching hold or, if not, the Fed has our back. The economy catching hold would be truly remarkable since emerging market GDP’s are decreasing, Japan’s disasters and Europe’s recession.

If traders/Investors sell into the Apple news -that would be an indication of a short term top.

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Positions

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Investors411  has a position in a homebuilders ETF - XHB and recommends a defensive position in oil price ETF’s USO or UCO (2X) for those with sizable portfolios to protect. This is to guard against an oil supply disruption.

Check out YSL 2012 list in last Monday’s blog. (Paul’s Corner) Remember the analysis of data there is now – way out of date.

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If the liquidity keeps flowing

stocks will keep growing

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Longer Term Outlook

3 months+

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Still

CAUTIOUSLY BULLISH

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AS ALWAYS, DO YOUR OWN RESEARCH BEFORE INVESTING

ALL TRADING INVOLVES RISK AND POTENTIAL LOSS OF PRINCIPLE

CHECK ALL DATA, I MAKE MORE THAN GRAMMAR  ERRORS.

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