Getting No respect – Rodney Dangerfield

No Respect

Yesterday 53 Democrats voted to end the filibuster on a bill that would give tax breaks to companies that brought outsourced jobs back to the USA. It failed to get the required 60 votes to break the filibuster.

It’s remarkable that almost NO media outlet is giving this important jobs bill coverage “aimed at small manufacturers, including a payroll tax exemption for companies that move jobs to the U.S. Ill. Senator Dick Durbin was the bill’s chief sponsor. What’s more important than Jobs, Jobs Jobs for the American economy and workers?

The TEA Kettle Movement

What is getting all the news instead of substance is the “Tea Kettle Movement”  (Tea Party) That’s just “letting off steam.” The above & following quote is from NYT’s Pulitzer prize winning Tom Friedman

“The Tea Kettle movement can’t have a positive impact on the country because it has both misdiagnosed America’s main problem and hasn’t even offered a credible solution for the problem it has identified.”

Bottom LineScreams and anger gets the attention in our corporate controlled media instead of substance and jobs. Is Friedman right in his assessment?

Investors411 is going an break for a few days, the comments section will be open. Also next week Investors will be shutting down Thursday and Friday. Happy trading.

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

Index Percentage Volume
Dow +0.43% up
NASDQ +0.41% up
S&P +0.65% up
Russell 2000 +1.07% -

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Technicals, Fundamentals & Analysis

Investors411 record – 5 years of beating benchmark S&P 500

Mantra for September - ”The Black Box/High Frequency Traders BB/HFT control the majority of trades. CNBC’s Jim Cramer -”BB/HFT make up 80% of trades.

US Markets -

Stocks rallied moderately in increased volume. The NSDQ’s volume was even above average. But average volume is @30% less than this time last year.  Lack of volume shows that the retail investor has all but vanished and financial manipulators are in control.

One of those manipulators is our FED that again used the POMO to push money into the economy yesterday. Perhaps this served as a reminder to investors that the FED is ready to “do whatever it takes” to insure economic health, even if inflation is the end result of all this money flowing into markets.

Markets moved higher on some worse than expected consumer confidence news.  Higher stocks on bad news is bullish.

Significant Indexes

  • The Dollar (USD) [Anything daily price move over +/- 0.50 is significant. Dollar usually moves inversely to stocks] The dollar fell  -0.41% yesterday. After sharp two week fall some sort of consolidation is to be expected. Looks like we have had a very short consolidation.  Longer term trend for stocks = Bullish
  • The Baltic Dry Index (BDI) [measures cost of world trade. Also proxy for China & emerging markets] Rose a tiny +2.16% yesterday.  An 8 week bull run, then a two week fall, now pushing higher. Could be return to bullish trend. Another day or two of positive gains would turn this index’s trend bullish But for now = Neutral
  • McClellan Index – (MO) [The rough guideline is over +60 = overbought market = sell positions or short stocks, & -60 = oversold market = buy stocks.]   Rose to +14.96. Still lots of room to move higher or lower. Location= NEUTRAL

Reading Tea Leaves

The vast majority of stocks/ETF’s move with the markets. Here’s what to look for while Investors411 is on hiatus. The comments section is still open.

  • Same guidelines on the MO. But we are no where near overbought. so still room for bulls to run.
  • Check out the movements on the dollar. If bears continue to rule stocks will go up. However if this fall turns into a crash & burn we are all in trouble.
  • For rally – Benchmark S&P 500 has resistance at 1170 and major resistance at 1220. For reversal support level around 1130. We’ve already tested this level and its held.
  • The bulls are running right now.

Positions

The  Positions Section link to latest & former buys and sells  - These are positions I actually own

(I do manage 6 accounts that have other positions)

  • EWS (Singapore) 2% trailing stop loss on 50% of position/ 4% trailing stop/loss on the rest.
  • USO (price of oil/commodity).
  • SSO (2x what S&P does- this ETF is more a trade that may turn into an investment) I now have a 2%trailing stop on 1/2 this trade and a 4% on the rest.
  • TYH (3X technology) 2% trailing stop on this ETF. for today.

Obviously choosing just one or two stocks to invest in has lots of risk. Example AAPL drop at open yesterday (see comments section of blog) or GMCR 10+% drop in after hours trading.

Each YOUR Stock List’s had over a dozen choices.  Diversity is a key word in investing. So a less risky investment would be 1/2 or more of a group of stocks.  This also is exactly what an ETF does.

Your can make great gains as we did with IMAX earlier this year (up 65+% at high), but its safer to hold ten stocks, even if they are more volitive or high growth stocks that you folks seem to choose for YOUR stock list.

Longer Term Outlook - CAUTIOUSLY BULLISH

AS ALWAYS, DO YOUR OWN RESEARCH BEFORE INVESTING!

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