“The Best Government Money Can Buy” – Mark Twain

Democracy’s Fall

Elections (Part 3)

Nothing will prevent me from voting next Tuesday.

But lets take a hard look at OUR so called Democracy in the USA by simply presenting a few facts. You can come to your own conclusion as to who is crushing YOUR Democracy. Some Facts:

  • There are 14,000 lobbyists in Washington for only 535 legislators. That’s 29 lobbyists for each legislator.
  • In 2008 & 2009 lobbyist spent $6.7 billion dollars in Washington to get what they want.
  • Lobbyists often write the legislation, legislators only spend on average 3 days a week in Washington.
  • Nancy Pelosi (#1 Dem in House) – campaign funds – 87% come from out of district 70% out of state.
  • John Boehner (#1 Rep in House) – campaign funds – 91% come from out of district 74% out of state.

Now, because of the Supreme Court we have unlimited corporate spending This vastly increases the power of the wealthy, big corporations and Wahington lobbyists

If you think this has no impact on YOU.

  • Look at what the lobbyists did to deregulate the financial industry. The result was the 2008 financial meltdown – Even with Bernanke, Bush & Obama massive influx of YOUR tax dollars and printed money keeping us from a total worldwide economic collapse – Look what happened to employment, your houses value and your stock portfolio. You pay and pay and pay. Like you are saying in the comments section of the blog – Wake Up and Smell the Coffee.
  • The Big Financial Services bill to regulate the shadow banks - 40% more money went to those who opposed Wall Street reform. Even those who voted against it received mountains of cash.

You’re simply the sheep being led to the slaughter in what you think is a transparent democracy. There is an growing oligarch that owns/buys more of your democracy each day.

Sources -

  • Dylan Ratigan Show especially this clip which is far more powerful than the above editorial.
  • MapLight.org gives you legislators, their donors and ties it to specific bills. You can see how much an industry and/or individuals paid to get a specific bill passed.

More on elections tomorrow – facts and solutions.

KISS & Stocks (Keep It Simple Stupid)

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



Index Percentage Volume
Dow +0.05% up
NASDQ +0.26% down
S&P +0.00% down
Russell 2000 -0.14% -

Technicals, Fundamentals & Analysis

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

US Stock Markets -

Stocks remained flat as the dollar rose significantly within its consolidation pattern. A bit of a disconnect, for a close to  perfect inverse relationship. The Dow should have been down @1% with this kind of dollar move. However no resistance level was broken. The last time a significant move occurred in the dollar and stocks went nowhere, they made up for that with a major move the next day.

A major reminderthe majority of trades in the US stock markets are done by Black Box/High Frequency Traders and this has almost no significance to traditional investing in a company because of its value. The BB/HFT make a mockery of of traditional investing and like the too big to fail over leveraged shadow banks, if they were eliminated the stock bubble would bust. 50 to 80% of volume would simply vanish.

Wealth is being created artificially on stock imbalances and algorithmic formulas. Not because of a companies fundamental value. This is, of course, a bubble.

Repeat – “All eyes are on the dollar 24/7 and which way the dollar moves out of its consolidating range (see past updates) will determine the fate of stocks.”

Significant Indexes

  • The Dollar (USD) [Anything daily price move over +/- 0.50 is significant. Dollar usually moves inversely to stocks] The dollar rose a significant +0.75% yesterday. Dollar currently moving sideways within a range (see below). Now closer to upper end of range, Trend for stocks = Neutral
  • The Baltic Dry Index (BDI) [measures cost of world trade. Also proxy for China, emerging markets, exporting countries] Rose a minor +1.09% yesterday. BDI now consolidating after bull run that began in June. Longer term Pattern= Bullish/Neutral
  • McClellan Index – (MO) [The rough guideline is over +60 = overbought market = sell positions or short stocks, & -60 = oversold market = buy stocks.] Fell slightly to -4.83% yesterday. Lot of room to move both higher and lower. Location= NEUTRAL

Reading Tea Leaves.

From past Investors411 -“Any move in UUP above 22.7 resistance is trouble for stocks. Any move below 22.18 support level is good for stocks. A breakout of either the support or resistance level will tell you who wins the dollar war.” UUP at 22.52 now

Repeat again – For three days in a row the dollar has started lower and rallied. Clearly there is a strong support level building. Yesterday we started out up and held onto the gains UUP is just 0.17 points away from upside resistance barrier.

This is a CAUTION day because the dollar is getting close to its resistance barrier.

Quantitative Easing or QE2 – This is the Fed’s print and dump of over a trillion dollars into the economy. One thing this has an positive impact on is stocks and devaluing the dollar. Here’s an editorial by Cullen Roche (Roche has a good record in predicting economic bubbles)- entitled “More Evidence That QE Doesn’t Work.”


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)
  • SSO (2x what S&P does) Tightened stop on this.

Again from previous days – “Not making any specific move until dollar breaks out of its range. I would look at a breakout higher for the dollar, and a corresponding fall in stocks and the MO to oversold as a buying opportunity for long term investors.”

Look for Paul R’s always enlightening remarks on stocks and sectors in the comments section of the blog. See POSITION section of blog for lists of potential stocks & ETF’s including ”YOUR Stock List.”

Longer Term Outlook - CAUTIOUSLY BULLISH


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