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Santorum Shocker

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“Obama’s Better Than

Etch A Sketch Romney”

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Have you ever seen a major candidate from one party say the other party’s candidate (Obama) would make a better president?

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Lead story/interview from  NBC More from Huffington Post More from CBS

Why the “Etch A Sketch” Label will stick - Time Magazine’s Joe Klein

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Romney, spent yesterday emphasizing that the bailout save the USA from a

“full scale depression.”

Bush, Paulson, Bernanke and a majority of Dems supported the bailout.

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A Personal Note

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Serial Misogynist

Rush Limbaugh

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As CDB says in the comments section of the blog – “few have problems with those who make one or a few politically incorrect statements.” True.

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Personally, I have a wife, daughters and grand daughter and I am going to defend them to my utmost ability against anyone who dehumanizes and objectifies them. Especially, someone who continually does this day after day, after day.

Bullies wont stop unless YOU take a stand.

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STOCKS

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Wall Street Bull and OWS Symbol

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Insight into how Investors411 evaluates stocks, markets and trends can be found in the STRATEGY Section of the blog.

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Headline

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openingimage

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China

Is The Bubble Bursting?

(Photo from ETF Digest)

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  • The possibility of a hard landing as the Chinese economy slows down became more real yesterday. This sent shivers to stock markets around the world. Story from International Business Times
  • Its a bit surprising that US stocks fell as little (@-0.5%) as they did (lighter volume too) on the China news.
  • More confirmation of a hard landing for the Chinese economy would have a negative impact on US and world equities.
  • The major fundamental behind stocks remainsCentral Banks printing money and low interest rates. It forces money/people that want a higher rate of return into stocks and other riskier assets.

Therefore a Long Term Bullish Bias

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Old Faithful

The McCellan Oscillator

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  • Our #1 technical forecasting tool, the McClellan Oscillator (MO) fell to -49.53. (for more see  STRATEGY link at top of blog and scroll down) MO approaching oversold territory = NEUTRAL/bullish
  • 6 month chart of MO. From two days ago - “The MO is best at calling tops and bottoms. However,…the chart  looks like we maybe heading down the next few days. Would love to see a dip low enough (past-60) for a clearer MO buy signal.”

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Canary in a Coal Mine

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Investors411 uses two gauges to determine how well Central Banks are doing at manipulating stocks.

  • Italian 10 year bond yield up again  to 5.16% (7:15 AM EST) Well below the 7.00% Danger Zone, but its started to rally again
  • Reports out of Spain (the second largest European country in trouble) are worsening. Rising to 5.49% rate at yesterday’s close.
  • Our USA canary in the coal mine - The US ten year T bill broke out of its trading range two weeks ago. Hardly something to worry about yet. Rates have fallen last two days to  2.27% yield. But rising rates is something to keep an eye on.

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Reading Tea Leaves


Bottom Line – From two days ago “The rally off the last dip is cooling off…. So this does look like a ”healthy”rest for stocks. If our MO goes low enough, perhaps a buy the dip situation will arise.”

We have had warnings of a fundamental shift in China. How dramatically and/or fast China slows down is significant. Probably not a concern, because China will manufacture (lie or exaggerate) about data. But something to keep an eye on.

Still looking for the MO to drop low enough to “buy the dip.”

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YOUR Stock List

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A week or two ago Paul Listed some of the stocks in YSL #8 that had become potential “Buy The Dip Candidates.”

Your never near 100% (unless your a HFT trader), but there have been, as Popeye would say,  some

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Winner Winner

Chicken Diner Stocks.

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  • FT - Footlocker - chart
  • CMG – Chipoltechart
  • DLTR – Dollar Tree – chart

Considering three down days in a row,

The Results Deserve some

Trumpets

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There’s more – Review the whole list here (March 12th blog – scroll down)

Check out the comments section of blog for more.

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A Special Shout Out to George

who suggested buying Etch a Sketch Stock two Days ago

Etch a Sketch stock (Ohio Art OART:OTC US) went from $4.00 to $12.50 yesterday. This is one very small company. Proving, once again, how important fundamentals are to stock prices.


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Longer Term Outlook

3 months+

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Still

CAUTIOUSLY BULLISH

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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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