Our President…

… mindful of soaring deficits, was pushing bold action to shore up the nation’s balance sheet. Cloaking himself in the language of class warfare, he calls on a hostile Congress to end wasteful tax breaks for the rich.

We’re going to close the unproductive tax loopholes that allow some of the truly wealthy to avoid paying their fair share, he thunders to a crowd in Georgia.

Such tax loopholes, he adds, “sometimes made it possible for millionaires to pay nothing, while a bus driver was paying 10 percent of his salary – and that’s crazy.”

Preacherlike, the president draws the crowd into a call-and-response. “Do you think the millionaire ought to pay more in taxes than the bus driver,” he demands, “or less?”

The crowd, sounding every bit like the protesters from Occupy Wall Street, roars back: “MORE!”


The President who spoke these words was not Barack Obama

The year the above speech occurred – 1985

The President was

Ronald Wilson Reagan

  • When did the Republicans abandon Reagan’s “bus drivers” and the middle class?
  • When did Republicans become the party of the richest 1% of Americans?

“The GOP has undergone a radical transformation, reorganizing itself around a grotesque proposition: that the wealthy should grow wealthier still, whatever the consequences for the rest of us.”

How, Why When?



Ohio and Debates

Republicans debated last night, but on Tuesday Ohio voters went to the polls.

They defended the freedom of working Americans to collectively bargain.  By a 61% to 39% vote they granted middle class working Americans the freedom to fight collectively for their rights

All Republican Presidential candidates were against this and latest poll show Obama’s popularity (a supporter of collective bargaining) at least 9% above Republican candidates in Ohio.

Its just one vote/poll/major issue, but when you compare it to the rights we give the elite oligarchy in America its very significant.

Thanks to Jim and Popeye for a heads up on this.



That cut Bear Cub didn’t hang on but his mother is back and she’s angry.

The tipping point was when the Italian 10 year bond rate hit 7.00%.  The rate that others (Ireland, Portugal, and Greece) began their meltdowns. = Meltdown in US Equities.

WSJ on Euro Crisis. -

“the risks to the global economy are broad. The European and U.S. financial systems are deeply intertwined”

Every investors411 reader should realize by now the major link between European Bank debt, European Banks, and American Banks is the opaque Derivatives Market (CDS’a) that exchanges trillions of dollars of privatized over leveraged risk on European Debt.

Media virtually ignores the same derivatives that multiplied the over leveraging in the 2008 financial meltdown, because to many too big to fail shadow banks profit from it.


Reading The Tea Leaves

Our #1 technical forecasting tool, the McCellan Oscillator fell to -10.66. 50DMA at +22.80. = NEUTRAL

Since derivative markets hides whose on the other side of a transaction, and too big to fail shadow banks and central banks have hidden or irregular accounting, its impossible to accurately predict stock trends.

Therefore Hedge plays like the GMCR listed below is far less risky than picking a market direction.


Paul’s Corner

The Big Blue Line

Dave Landry is one of the many excellent market technicians kicking around Wall Street and is known for his Big Blue Line approach to the market and stock selection. It’s a very simple method; take a look at Dave’s excellent Big Blue Line YouTube video:


Pay attention to the three ways the Big Blue Line points and his discussion about buying in very oversold markets. Which way is the line pointing with respect to our current market?

Kindly post your thoughts about The Big Blue Line.

A short Paul’s Corner today,  that’s all folks!

[Editor's Note - Landry  presentation is enlightening]



Hopefully Longer term positions.

SPY - stop/loss order at  moved up to 123.6.  Stops was hit. Lost the 5+ profits in the meltdown. Gains +2%

GLD -  DGP is the more risky double long gold ETF. 1/2 position added at 173.85.  Will add more on 2/3+% dip.

FXI - [China] Added at 38.12. Several of you wrote emails that trades in the long term Positions section should be announced the day before and not in the comments section. So 1/2 of this ETF will be sold near the open today

Considering – oil ETF USO (2x oil prices ETF UCO riskier) This would be a replacement for SPY. I have not had time to decide which ETF to use and that will be announced in the comments section


Winner Winner Chicken Dinner

The new official recognition expression of Investors411

Thanks Popeye

Yesterdays GMCR trade has won beyond our wildest expectations.


It looks like tou are in the money somewhere between $18 and $21under a 65 or 67.5 Put price. $6,500 and looks like the open is at $4,800. Gains here are going to be about 200% of the original investment. Most of you invested $600 to $850 per contract.

Just remember (I know this is true of Fidelity) If you hold stock through Friday’s expiration that you do collect the difference of where it closed Friday and your Put price. Starting Monday you will be short GMCR. Check out how your company deals with this. When I win I usually take profits ASAP.


Longer Term Outlook

3+ months


Investors411 has 5 different valuations - BULLISH, CAUTIOUSLY BULLISH, NEUTRAL, CAUTIOUSLY BEARISH, and BEARISH.

Everything written in BROWN is a repeat from a previous day(s)




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