Al Frankin’s Rape Legislation
30 old white Republican men voted NO on Senator Al Frankin’s legislation “that would have required defense contractors to allow their employees access to US courts in cases of rape or sexual assault” The case of Jamie Lee Jones who was gang raped by fellow Halliburton/KBR employees in Iraq and then held prisoner in a trailer sparked this legislation.
To protect Hallibuton these senators had to side against American rape victims. The 30 old white Republicans (including McCain) “might want to rethink your allegiances.” (Jon Stewart ) LINK to his devastating video and story on this
Trickle Down Economics/Health Care
Trickle Down economics started with Ronald Reagan and it has sure worked in making America’s rich richer and disintegrating the middle class. Two editorials by Robert Reich and Frank Herbert t deal with this. (Herbert fails to lay at least some of the blame on Obama.)
To Big To Fail
NYT award winning financial columnist Andrew Sorkin’s book Too Big to Fail has an interesting excerpt in Vanity Fair LINK entitled Wall Street’s Near Death Experience. Yes these same guys brought us to the brink, but the excerpt is enlightening. Also in NYT is The Race to Save Lehmann LINK
STOCKS
AS ALWAYS, DO YOUR OWN RESEARCH BEFORE INVESTING!
| Index | Percentage % | Volume |
|---|---|---|
| Dow | -0.67% | up |
| NASDQ | -0,76% | up |
| S&P500 | -0.81% | down |
| Russell2000 | -1.15% |
- |
Investors411 record – 4 1/2 years of beating benchmark S&P 500
(see results for last 1/2 year – click 6/25 & scroll down)
- Brown = repeat statements
- Green = usually bullish statements
- Red = Usually bearish statements
Technicals and Fundamentals
US Markets broke out to new yearly+ highs in weak volume. All that money on the sidelines is staying there. Technicals – Volume in no way confirming the price move higher – However, volume, as a #1 confirmation factor, is getting trumped by the ever sinking dollar.
From yesterday – The FED and the US government is not going to stop shoveling cash at the market as long as unemployment is so high. US companies are not hiring and will first hire abroad where labor is cheaper and growth faster. So the cash shoveling will continue and Wall Street, once over bought situation is corrected, will continue to rise and the dollar fall. Two major points
- The rally is based on the dollar falling
- As long as unemployment grows there is no reason to stop the Fed from stimulating the economy
Therefore high unemployment numbers inversely benefit Wall Street stock prices. The more we stimulate the economy (0% interest rate loans from to bailouts) the lower the dollar falls. The more we simply print money the lower the dollar falls and the more profit American base companies make because their goods cost less abroad. (see below for more)
Apple has grand slam earnings report. Flood of earnings this AM. CA T (big equipment maker) also a grand slam.
Both the BD I and the Dollar are bullish for stocks
——–
Significant forecasting tools/Indexes for stock markets
(Besides #1 Volume & #2 Reaction to News)
BDI - The Baltic Dry Index measures the flow of goods by price (world trade) .
The BDI is @ 37% off its high (early June) Before that it gained almost over + 630% from its all time low of 663 in Dec. of 2008 (April 2009 high of 4291 )
The BDI rose +38 points Friday and closed at 2766. A higher high price on its chart pattern has been confirmed = Bullish for stocks & world trade right now
——-
$USD - Check out the 6 month chart (to the left) or a multi year chart of the US dollar of the US dollar.
Mantra – Dollar up = US stocks down & Dollar down = US stocks up
US dollar fell -0.37 % The dollar closed at $75.37 . We have developed a support now resistance (it’s called support on the way down and resistance on the way up) level just below $76 . The dollar closed below its support level. = Bullish for stocks
NB -
- Earnings will probably trump the dollar as the #1 influencing factor for the nest two weeks. But the falling dollar is the main driver of stocks right now and we have a long way to go till we hit last year’s $71 low.
- A slow decline in the dollar = good a rapid decline = bad .
Last year’s low was around $71,(March 08 ) so there is a long way to go before the major and very crucial support level.
Therefore, The dollar can drop much lower and stocks rise much higher till support levels are reached
Positions
The Positions Section (top of blog) to see all the latest buys and sells
Review of Positions (Part 2) (more on stocks tomorrow)
SPX or SSO – This is where you park money instead of cash. Only downside here is it takes 3 days to get to use this $ to make a trade. More aggressive traders can use SSO Longer term investors use SPX (This ETF does 2x what the S&P 500 does) Recommendation Buy the Dips till the dollar drops to near $72 .
NVS, AAPL, CSCO, MVIS, GS , & JPM are all stocks that have been recommended for traders to buy on dips. Would add CAT to that list
EWZ – Up way too far too fast. Trader s should lighten up on this ETF
Long Term Outlook = CAUTIOUSLY BULLISH
See Changes in STRATEGY, POSITIONS, & OVERVIEW sections of blog
AS ALWAYS DO YOUR OWN RESEARCH BEFORE INVESTING!
