From Investors411


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Michael Moore is A Whimp

So is the Left in the USA



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Why? They didn’t produce

This Video Ron Paul did.

Ron Paul also recognizes its the shadow financials that are crushing the USA. His solution – return to a gold standard and eliminate the Fed would solve the problem, but create a world wide depression.

Instead we need a Teddy Roosevelt to reestablish our rules, regulators, break up too big to fail banks & a government that does not go to war and cut taxes.

Right now we are playing financial football without most of the rules and far less referees. Pure Free Market Capitalism is playing the same financial  football game without any rules or referees.


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STOCKS

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Neuschwanstein Castle – Germany

The Bulls are Back – Yesterday marked the second technical confirmation of  Torrid Tuesday US equities held onto or added to their gains.

The Prime catalyst mentioned yesterday was the European Central Bank giving $647 billion in low interest loans to over 532 banks.

As Popeye points out in the Comments section


Banks get Bailed Out

We get Sold Out


To keep the crony under regulated opaque crony capitalist system alive, European Banks are getting bailed out. They are the ones who made most of  the bad loans (bought the bonds) to  a handful of troubled European countries.  These financials made the loans because they could repackage them into “financial weapons of mass destruction” – credit default swaps.

The people of Europe get the higher taxes, job loses and cuts in government programs.


Sound familiar?


There are two solutions to this problem – Or its going to keep happening again and again.

  • Ron Paul’s – Blowup the Fed and go on the gold standard
  • Create real regulation, enoough real regulators and eliminate too big to fail shadow financials & opaque markets.

Repeat  - Bottom Line - This is a manipulated market. The ECB in what may just be the first of many loans has made an impact. Bulls Rule

Overnight Data From Europe


Germany’s DAX

Gapped up at open, lost @1/2 and fell to +0.38 at –  at 6:40 AM EST

Other major European Indexes doing better.

DAX at  +0.20% at 8:45 EST

Italian 10 year bond

Opened at 6.96% - 2:30 AM EST

Fell to 6.90% at 6:45 AM EST

Italian bond at 6.94% at 8:45 AM EST

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Paul’s Corner

One of the things I love about the HGSI software is the various searches I look at nightly occasionally spit out stocks I have never heard of and may do that for several days in a row. BKI has been appearing repeatedly for days now.

BKI Buckeye Technologies Inc. engages in the manufacture and distribution of cellulose-based specialty products. It operates in two segments, Specialty Fibers and Nonwoven Materials. The Specialty Fibers segment offers chemical cellulose, customized fibers, and fluff pulp derived from wood and cotton cellulose materials using wetlaid technology. The Nonwovens Materials segment provides airlaid nonwoven materials derived from wood pulps, synthetic fibers, and other materials using airlaid technology. The company?s products are used in various applications, such as disposable diapers, personal hygiene products, engine air and oil filters, food casings, rayon filament, acetate plastics, thickeners, and papers. Buckeye Technologies Inc. markets and sells its products directly through its sales force, as well as through sales agents primarily in North America, Europe, Asia, and South America. The company was founded in 1992 and is headquartered in Memphis, Tennessee.

Ok big deal, a pulp mill? Interesting stuff made from wood scrap I’d burn for heat in the winter. But in an investment world of Smart Phones, flash drives, AAPL, ZNGA, why the decent chart and recent chart acceleration?

The following article surfaced yesterday and might explain the move. LINK

BKI broke out nicely yesterday from a nice 8 week base. Some of the move was probably generated from this article. Although it is somewhat thinly traded at 400,000 shrs a day, all of my favorite HGSI chart indicators are green. Even with yesterday’s pop, BKI is not over extended at the moment. If one is to trade this stock it might be beneficial to watch chart action for a few days and one shouldn’t typically trade at the open, the morning after a decent pop like it had the day before.

Several other stocks in the pulp wood group are looking good too. For your evaluation here are the other stocks within this group.

BKI

MERC

FBR

CLW

IP

WPP

INDEX

MWV

NP

UFS

SPP

GLT

ABH

VRS

KS

SWM

ONP

Note, stocks are listed in an HGSI Top Down Analysis sort from 12/22. This sort can and does change every day. The chart and the fundies should be one’s guide to stock selection.

My good friend Ian Woodward posted an excellent late night blog last evening and gave some good thought as to the current market and what to look for if this Santa Claus rally is to continue. Be sure to read it!

LINK

It’s 7 AM as I write this morning; ABC Good Morning America just came on and at the open they featured soldiers coming home from Iraq. It sure is nice this horror story is “some what” over.

Merry Christmas All!

Disclaimer, all comments are for education only and are not meant as stock buy or sell recommendations.

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Reading The Tea Leaves

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Our #1 technical forecasting tool, the McCellan Oscillator rose to +34.86 . 50DMA at +5.88 = NEUTRAL/bearish

We’re on the cusp of moderately overbought, but no where near clear reversal territory.

See past Investors411 for all the other bullish factors influencing the market this week.

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The fact that the ECB is making very low interest rates yo 500+ European banks takes some heat off of Europe and mitigates the Italian Problem. If Italy goes into “controlled bankruptcy” it’s impact on European banks will be less devastating.

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The 7.00% rate on the Italian 10 year is still significant, but less so after the ECB intervention. The 6.94% proximity to 7.00% is the only thing holding back another major rally today.

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For more information on trading strategies see STRATEGY Section of blog.

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Longer Term Outlook

3 months+

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The Bulls are back (see above)

Upgrade to CAUTIOUSLY BULLISH

We have been on the cusp of change between CAUTIOUSLY BULLISH and NEUTRAL for almost a month.  So its subject to change. Both Neutral and Cautiously Bullish are favorable for longer term investments. Obviously one is more favorable than the other.


CAUTIOUSLY BULLISH

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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)

AS ALWAYS, DO YOUR OWN RESEARCH BEFORE INVESTING

ALL TRADING INVOLVES RISK AND POTENTIAL LOSS OF PRINCIPLE

CHECK ALL DATA, I MAKE MORE THAN GRAMMAR  ERRORS.



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