“Where books are burned in the end people will burn.” – Jewish Poet Heinrich Heine

Book Burning Zealots

Muqtedar Kahn an associate Professor of Social Policy at Univ. of Del. had an excellent editorial in yesterday’s WaPo. The above quote was from his article.

The 9/11 Koran burnings scheduled by a “Christian” pastor in the USA and promoted by American media and growing US Islamaphobia has become international news.

  • VFW commander Richard Euwbank has said “it would endanger US troops overseas.”
  • Vatican & top NATO officials are condemning it.
  • Our State Department has called it un-American, the attorney general “idiotic” as well as the National Council of Churches
  • Catholic cardinal in India
  • Muslims and Christian religious leaders in Indonesia have banned together
  • Of course in countries like Afghanistan, Iraq, Pakistan etc. there has been widespread protest.

Islamaphobia is expanding throughout the USA and this Koran book burning  is like throwing gasoline on a fire. “Evil triumphs when good men do nothing.”

Wealth Inequality

Remember all those “banana republics ” and other countries that never got anywhere economically because all the wealth was held by a rich oligarchy. Slate has come up with some enlightening documentation that demonstrates the growing rise in income inequality in the USA. A visual guide to Income Inequality

More tomorrow

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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!

Index Percentage Volume
Dow -1.03% down
NASDQ -1.11% down
S&P -1.15% down
Russell 2000 -2.19% -

Technicals, Fundamentals & Analysis

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

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

From Yesterday – “Its natural for volume to rise after Labor Day weekend.” – Volume fell, yet another further indication of just how many retail investors no longer invest. BB/HFT’s rule.

Investors411 strives to give you many different ways to invest depending on your level of risk.

  • YOUR stock list (made up of stocks you send in are listed in the Position Section at the blog and reviewed by Paul R periodically in the comments section. – For higher risk investors latest update yesterday by Paul R
  • Investors411 has a long history with ETF’s that benefit from major economic megatrends. These can also be found in positions section of blog. It’s interesting to note that while overall volume is flowing out of ETF’s this year, its growing in foreign ETF’s
  • Investors411 also offerer a resource to a more conservative approach to stocks investing that provide a dual stream of income – dividends. High yielding dividend plays or the Dow’s top 10 dividend stocks
  • Investors411 lists various “significant” indexes that can be used as a forecast tools on when to buy and sell.
  • Check out the comments sections for further ideas from active traders.

Significant Indexes

  • The Dollar (USD) [Anything daily price move over +/- 0.50 is significant. Dollar moves inversely to stocks] The dollar, exploded  a +0.95% higher yesterday. This is the single most important factor behind why the BB/HFT’s sold & stocks fell yesterday. = Bearish
  • The Baltic Dry Index (BDI) [measures cost of world trade. Also proxy for China & emerging markets] Rose +1.46% Friday. A 5 week rally the BDI had flattened out. Now starting to rise again. This acts as a confirmation of the economic health of emerging markets. = Bullish
  • McClellan Index – (MO) [The rough guideline is over +60 = overbought market = sell positions or short stocks, & -60 = oversold market = buy stocks.] MO fell dramatically  to +15.34 yesterday.= Neutral

Reading Tea Leaves

The sharp reversal higher in the dollar is especially noteworthy. The chart shows we broke above the 50 DMA resistance level, but we are still in the trading range developed over the last 4 weeks. Today will act as a confirmation (or not) of yesterday’s big dollar move. Another massive move higher would be very bad for stocks. holding onto yesterday’s rally – mildly bad for US stocks and the bigger the fall the more bullish for stocks.

Again UUP the dollar ETF is what to focus on for stock market direction if you are an active trader.

Positions

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

Current positions –  EWS (Singapore)

Sold 1/2 of EWS for +5% profit.

Since MO is back near zero or its 50 & 200 day Moving averages – It’s neither overbought or oversold. Therefore NOT willing to risk investing. Traders who know what they are doing and are willing to take risks may want to check out latest update yesterday by Paul R of YOUR Stock List

Long Term Outlook – NEUTRAL

AS ALWAYS, DO YOUR OWN RESEARCH BEFORE INVESTING!

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