AP Photo

Financial Fraud

Few in Washington get it. Senators Kaufman & S. Brown do – (see past Investors411) Shadow banks and individuals/homebuyers entered into FRAUD The enablers of this fraud were the greedy, over leveraged, shadow banks. The very clowns/idiots/money grubbers in Washington ripped apart legislation that had kept us safe from this happening since the Great Depression are now trying to make everything right again.

Stupid Democrats - What the American Public Gets is the FRAUD – The liar loans, the bank misrepresentations, the crooked individual who entered some of these transactions. Now that you can debate & vote on this – pass the Volker rule, Kaufman/Brown legislation and get tougher on all your proposals.

Simon Johnson has another excellent editorial on this that you should post on your Facebook page, Twitter or email its URL to your friends and politicians.

Catastrophic Oil Spill

This environmental/economic disaster keeps getting worse each day

  • NYT headline The continuing oil spill has reached the Louisiana coast
  • NPR headline The environmental disaster could be worse in size and/or impact than the Exxon Valdez
  • BP stock has lost  $26 billion in equity and fell -8.34% yesterday alone
  • We all mourn the loss of life of those who died on the platform

Oil is still gushing from the break and it will take “months” to cap this. We can only guess the impact from Texas to Florida on the beaches, the economy, the environment and the wildlife that this will have.  Remember, the Exxon spill happened in unpopulated  Alaska.

Bottom Line Politically  -  Drill baby drill is dead

I’ve got oil on my faceHope you’ve been checking out the commentary section There were 17 posts on this, financial reform, stocks and more.

I’ve long supported a comprehensive approach (like Obama) to energy as long as the more environmentally alternatives came first. WhySimple economics- the growing energy demands of the world. From emerging markets to the USA energy demands are increasing and the supply can not compete with the demand.  We can’t build, far more acceptable, alternative energy alternative fast enough to keep up with the demand.

Yes that means I support nuclear energy. But but as part of a comprehensive approach we need enery sources to come on line quickly or we are going to be fighting wars over them.

Example – In my home state the Cape Cod wind farm after 10 years and Kennedy’s death has finally received national approval. But there will be perhaps years more litigation before it gets started.

We should absolutely be investing far more in alternative solutions and strongly against coal because its the least clean source.  A year or two ago I set up a chart on carbon emissions vs fuel sources from either PeakOilNews or the Oil Drum. Will try to find it again.

I reasoned after Katrina these oil platforms were safe – It sure looks like I was wrong.

KISS & Stocks (Keep It Simple Stupid)

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


Index Percentage Volume
Dow +1.11% down
NASDQ +1.63% up
S&P 500 +1.29% down
Russell 2000 +2.12% -

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

Tech stocks which dominate the NASDQ rose yesterday in increased above average volume. Techs and small caps are usually the drivers behind any long term rally = Bullish

Good gains for S&P and Dow but in weaker volume. Lighter volume melt ups are the new trend.= Neutral

The big news for weeks/months will be how much the the Greek debt crisis spreads. A plan will be unveiled this weekend Now, markets are rising on this bad news. That’s =Bullish

Dollar falls back from breakout into trading range. Short term= Bullish

McClellan near zero (but it does have room to run higher till it reaches overbought territory) = Neutral

We seem to have a stampeding bull market. Monday’s have been good for stocks for the last 3+months. So traders should again run up stocks again today. Buy the dip. Short term trades in TYH & UWM could work on a dip.  Lot’s of Bullish signs out there


On individual stocks – Check out Paul R and some others comments to the right. Do your homework if your particular growth stock has dipped down enough it might be time to buy.

The Trend Lives, but the Market is Tired editorial – Our McClellan does NOT show tired yet - always good to get second opinion.

XLFWhose afraid of Financial Reform? Certainly not the big shadow banks that dominate the XLF (the financial ETF) It gapped higher and ended the day a huge +2.29% higher.  They have the money, power & lobbyists to squeeze what they want and get a weak financial reform package out of congress. Investors & traders in the XLF are basically saying financial reform is a joke. One caution volume diminished from previous two days.

Significant Indexes

  • McClellan Oscillator rose rose to  -1.74 yesterday.  [+60 or above = Overbought = sell. -60 or below = Oversold = buy]. StockCharts has a better version of the McClellan chart ($NYMO)LINK. - This is close to the middle of NEUTRAL territory
  • US Dollar – fell -0.39% yesterday.  [Anything over +/- @0.50 is significant.] Mantra - right now The Dollar Rules. Is very important.  Dollar closed at $82.01. The breakout of the trading range lasted one day  and the USD has fallen back from its new high into its old trading range. Rising dollar almost always = falling stocks.


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

IMAX reported earning yesterday. While the earnings were better than expected, traders “sold on the news.” This is a common occurrence especially for a stock that has move up a lot in the last few months. But even more importantly a stock that moved up 15 to 20 % in the few weeks directly before earnings. Therefore, a great earning report was already built into the price and traders “sold the news” (a Wall Street term). IMAX was down a lot more, but ended the day down -2.86% on a day all major US indexes rallied.

Bottom Line – holding a stock through earnings involves risk especially one that has run up higher before its report (gains 5+ % in the two+ weeks before it reports.) Obviously the bigger the gain the more the risk.

NB – Investors411 makes a critical difference between longer term investors and short term traders.

GLD -ETF for gold.  Investors411 has owned this and the ETF that does 2X gold prices) in the past.  Gold has broken out to a new high and will be buying it on dips. (more later)



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