Heroes

Inside Job -  The Charles Ferguson (above) Docudrama lists all the major players from an IMF President & French Finance minister to the insiders who got fired that stood up stood up to Paulson, Greenspan, Bernanke, Summers, Geithner & the shadow banks etc. and told them of the coming economic catastrophe.

What Can YOU Do? - You can Link to The Official Facebook page. It has some great ideas

Russ Feingold – Obama should give Feingold the #1 economic position in his administration. Below is a copy of the letter he sent to his supporters –

Thank you. Thank you for your support over the years.  Representing Wisconsin in the Senate has been the greatest honor of my life and together we accomplished many great things. No one has ever had such a strong foundation of support as I have.  You gave me my backbone.

In the words of Bob Dylan:  “But my heart is not weary.  It’s light and free.  I’ve got nothing but affection for those who have sailed with me.”

Forward!

Russ, Thank you.

Ted Kaufman – Mr Smith Goes to Washington (Joe Klein) Maryland’s appointed Senator who did more to take on Wall Street insiders than anyone else in the Senate along with Russ Feingold. A quote from this article is what I’ve always taught my kids and what this blog is all about.

When I mentioned that many people thought that work was doomed to failure, since the wizards will always find their way around the rules, Kaufman exploded, “Baloney!” Only he didn’t say that. “That is the stupidest argument. It’s like saying you don’t put cops in the toughest neighborhoods because there’s always going to be crime there. We need cops on the street, on Wall Street. Good cops, like the ones in the current Justice Department, Securities and Exchange Commission and FBI. Our problem was that the cops weren’t doing their job. They’d stopped regulating — not just on Wall Street but also food and drugs and in the mining and drilling sector. Look what happened in the Gulf.”

Elizabeth Warren – She’s been featured in Investors411 more than anyone else except the President. The later is obviously NOT on this list. The following lecture on the The Coming Collapse of the Middle Class at prestigious Jefferson Memorial Lecture Series is outstanding. Over 427,000 have seen this interview.  More fun – Warren on Jon Stewart.

If any of you has someone else who stands up to Wall Street and can explain why. I’d be happy to post.

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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!

DOUBLE CHECK ALL DATA, I MAKE MORE THAN GRAMMAR MISTAKES

Index	Percentage	Volume
Dow	+1.96%	up
NASDQ	+1.46%	up
S&P	+1.93%	up
Russell 2000	+2.56%	-

Technicals, Fundamentals & Analysis

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

US Stock Markets -

Dollar broke its support level two days ago &took a significant hit yesterday. This confirmed the breakdown through support. So stocks rallied yesterday.

Volume was higher and above average, but not the massive volume you’d usually associate with a rally of this magnitude. Let’s go back to or remember an old mantra – The Black Box/High Frequency Traders control 50 to 80% of the US stock market. This is their rally and its based on the downward plunge of the dollar.(see below)

The BB/HFT are now going to get some resistance from what’s left of regular traders/investors (the other 20 to 50% of traders) and they are worried.

• Insider selling is at all time high.
• S&P is at major resistance – this years high.
• Many Oscillators and Indexes are showing overbought US markets
• Our own MO while not in overbought territory yet is the highest in over a month.

US stocks used to be controlled by normal investors and traders – If it still was I’d be ducking, covering & selling big time. But its not. See Bottom Line below.

JS in comments section posts an interesting editorial on emerging markets fighting back against the Fed pumping and dumping truck loads of $$$ into our economy. This will be a concern in future and may lead to a currency war. But

• Mostly all bark and no bite right now from emerging markets
• China’s currency is pegged to dollar, so they are irrelevant in this.
• Europe, a slightly bigger economic entity than USA has even less bark.
• USA rules, in part because oil prices are tied to dollar and we are still (getting smaller each day but) the Big Kahuna

Employment numbers for last month just in +156,000 jobs rate even at 9.6% More here

Again the Mantra for the last week - “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. “Looks like Wednesday Fed meeting is the big event.”

The MO was near zero and we had the Fed announce a large pump and dump of Quantitative Easing ($600 billion in QE2) so as forecasted many new relevant ETF’s were added. – EEM TYH DGP. These were all bought as the dollar broke down through support after the Fed announcement.

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.”

Announcements of purchases/selling can first be seen in the comments section of the blog and/or if you are on the private mail list. If you’d like to get on mail list send me an email – see HELP/EDITOR section of blog

45 Park Place NYC – Former Coat Store

Burlington Coat Store

It seems American media has one again spun, hyped, fear mongered & distorted facts to create a monster controversy. Building a Moslem Culture Center at the Burlington Coat Factory Store (45 Park Pace) building near the former Twin Towers has become Building a Mosque at Ground Zero or “Sacred Ground” (Newsweek Headline)

Now across the country this outrage has spread to protest building of ANY Mosque for the 6 to 10 million American Moslems.  This makes sense to the growing numbers of bigots in America. Why not, there are those that believe no Catholic Churches should be built because it is a religion of terrorist child molesting priests.

If winning the war against the lunatic jihadists who attacked us on 911 shown anything, it is that we must separate them from the moderate Moslems (the 6 to 10 million in the USA alone)  - almost all of whom are not Al Qaeda terrorists. Obama, General Petraeus and even George Bush realized this and developed appropriate strategies to divide the terrorists from the moderate Muslims.

Our American bigots want to lump all Moslem’s together Remember Neda heroic death protesting the brutal Iranian dictators?

Moslem’s/Neda did not attack us on 911. It was a group of vicious, fanatical, insane terrorists from al Quaeda. The answer to defeating these terrorist is NOT to devolve into the same kinds of beliefs and intolerance they and others like them have.  If we as American’s cave in to the bigots then Osama Been Forgotten has truly won.

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!

Technicals, Fundamentals & Analysis

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

Mantra for the month – The Black Box/High Frequency Traders BB/HFT control the majority of trades. Paul R in the comments section has found a great source describing the BB/HFT traders and consequences of what they do.

O.M.G. Another day in the world of BB/HFT trading.

Even though Investors411 stated yesterday “the bulls seem to be loosing control” – Cowabunga - what happened? Collectively the dollar opened up an unheard of +1.80% and stayed their. (You can follow this by using often mentioned dollar ETF – UUP) Didn’t see that dollar move coming.

Your average investors have flocked to low yield bonds and are huddled their under the table. Some braver investors have chosen high dividend stocks – They got burned yesterday, but they should be more successful than your average stock holders in the long run.

The reason for the massive selling in moderate/average volume - ???? – There was no news out there that didn’t seem already built into most investors consciousness.

• The FED suggesting the US economy is shaky – We all know that.
• China slowdown. This is a planned slowdown as their stimulus funds have run their course and their worried about overheating GDP.
• Yes, there is a lot of vacant buildings in China and a housing bubble building, but there is also 10′s of millions of new members to China’s middle class each year.

Significant Indexes

• The Dollar (USD) had a OMG rally yesterday. [Anything over +/- 0.50 is significant] USD up a massive +1.84%. Don’t ever remember such a huge move. For stocks = Bearish
• The Baltic Dry Index (BDI) [measures cost of world trade/proxie for China & emerging markets] kept starting to go parabolic (+7.50% yesterday) Prices starting to go parabolic are a Danger sign but still = Bullish
• McClellan Index – (MO) [Basically longer term  - the rough guideline is over +60 = overbought market = sell or short stocks & -60 = oversold market = buy stocks.] MO fell to -32.95 Approaching oversold,but still = Neutral

Reading Tea Leaves

Welcome to the world of BB/HFT trading/investing - Jsovajani in his last comment states right now  ”the most important concept is capital preservation” and many of you bemoan the fact that Investors411 has not plunged into stocks this year like it has in the past. = capital preservation.

The good news – Our +/- 60 level on the MO has clearly become a fairly decent forecasting toll of when the BB/HFT will turn (see chart). Investors411 is going to stay and expand on this strategy. But we all need to have patience (including me) till the time is right to invest and to realize that its probably NOT going to be a long term investment, but one that lasts a couple months, weeks or days.

Positions

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

Current positions – NONE

• EWZ (Brazil – Now 0% of portfolio position) Bought at 69.80. Sold last 1/2 at 69.03 for -1% loss First 1/2 sold at +2% profit.

From yesterday – “The Bulls seem to be loosing control.” They lost it. “Perhaps the MO will drop low enough to consider buying again.” At -33 on the MO we are approaching the -60 oversold level

Long Term Outlook – NEUTRAL

AS ALWAYS, DO YOUR OWN RESEARCH BEFORE INVESTING!