Photo – flickr/JM Rosenfield (CC-BY)
Poverty & Race
Brandeis University’s AEIS yesterday published a report on Poverty and Race. Headline. The wealth gap between Afro Americans and White has increased fourfold from 1984 to 2007
- First to pick up on story was, of course, media outside the US – UK Guardian
- Middle and Upper class Whites 5 times richer than Afro American counterparts.
- Gap accelerating
Mind the Gap
How do we fill the gap of energy need between now and 2030? More than a dozen comments were made pointing out the dangers of nuclear energy and drilling offshore. Yep I agree. But only one of you yesterday , D, came up with a possible solution – natural gas and suggested the following sight – The Pickens Plan
Two Funny SNL Videos
The following two SNL video’s were sent in by HG. Their both very funny.
- self explanatory on health care vote-
- Conservatives over exaggerate the amount the following contributed to the economic meltdown and shadow banking crisis, but Progressives almost totally ignore this aspect -
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 | +0.05% | down |
| NASDQ | +0.31% | down |
| S&P 500 | +0.11% | down |
| Russell 2000 | +0.25% | - |
Investors411 record – 5 years of beating benchmark S&P 500 and almost all major US indexes
Technicals, Fundamentals & Analysis
Its all about the Dollar. Yesterday’s rumor/fact was the Euro Central Banks (perhaps our Fed helped) were all intervening to prop up the Euro. Euro goes up, dollar stabilizes, & stocks move higher.
Most likely senerio is Euro Central Banks will keep buying and use the $88 (Dollar) resistance level as help. See below for more.
Best read of the tea leaves - Like the Fed, The European Central Banks will Print whatever money it takes to stabilize the Euro.
Significant Indexes
- McClellan Oscillator fell a wee bit to -68.22 yesterday. [+60 or above = Overbought = sell. -60 or below = Oversold = buy]. StockCharts has a better version of the McClellan chart ($NYMO)LINK. - This is OVERSOLD territory. Bullish
- US Dollar – fell yesterday after an early rise to $87.00. Down -0.05 [Anything over +/- @0.50 is significant.] Mantra - right now The Dollar Rules is very important Technically, the move much higher and closing lower usually indicates a short term reversal of trend. However, the upside trend has had such momentum behind it, it is still likely that the $USD will reach its $88 resistance level before the end of the month. Support & resistance levels often act like magnets for stock prices.
Positions
The Positions Section = latest buys and sells - These are positions I actually own
Have not had a cha to update the positions section of blog. As stated yesterday “Since the McClellan is oversold - we’ve reached Buy the Dip territory.” Investors 411 bought UWM (5% of portfolio) at 33.44 and put a stop 2% below the bought price. This may turn out to be a short term trade.
ICON (a 2% position) was also bought at 16.68
We are still in OVERSOLD territory, McClellan at -68.22 = Investors411 will still be Nibbling on dips.
YOUR Stock List
Caution - This is mostly just technical analysis and lots of other factors enter into a decision to buy or sell.
For last weeks stock list and comments use calender at top of blog. Click on Tuesday May 11th.
Terminology
- 50 Day Moving Average of price- blue line on chart = 50DMA
- 200 Day Moving Average – red line on chart = 200DMA
- Ticker symbol for each stock is a link to a chart.
- Volume – Horizontal red (down days)and green (up days) line at bottom of chart show volume
- * Owned positions
- “Volume decent” – translation – relative to major indexes individual stock is looking good – probably more upside volume on rally days than downside volume on toasting days.
Most of you are looking for longer term buys. Remember Stocks are in most cases riskier than most ETF’s. Our main strategy is to buy the dip of a stock that is trending higher.
The issues YOU have chosen to invest in have outperformed all US major indexes.
AS ALWAYS DO YOUR OWN RESEARCH BEFORE INVESTING
- CAAS – 50DMA moving down means this stock is no longer trending higher. One criteria stock to make this list is its trend. Trading below 50 DMA
- PCLN – As stated poor earning hurt Priceline. 50 DMA moving down.
- CSCO, & AAPL CSCO missed on earnings (one reason not to hold stocks during quarterly earnings reports) Underperforming market AAPL is the last standing big cap tech leader. Ominous sign for technology. AAPL volume & price show little difference than overall US markets.
- SHOO – The 50DMA is its support line & SHOO came close yesterday. Will rally if the market does. Seems to have some juice left. Little too much downside volume. Riskier, but Buy the Dip
- *ICON, Bought the dip yesterday after stock dipped and bounced off its 50DMA. Outperforming markets. Volume decent. Buy the Dip
- DGIT – Still overextended, but has dipped in weak volume. You’d love another dip day, but this stock is too juicy for traders not to notice and push higher. Outperforming markets. If you can get it before it rallies buy. Buy the Dip
- *VCI. – Wish I had bought the dip yesterday. Outperforming markets. Decent volume. Buy the Dip
- *SNDK – Decent volume. Outperforming markets. Consolidation pattern forming. 50DMA is its support level. Buy the Dip
- CTRP – Volatile & Risky. Decent volume. Outperforming markets. Like to live dangerously Buy the Dip
- *ESRX - Outperforming markets, Volume decent. Has strong resistance level at @105. Consolidating. Breakout candidate. Buy the dip
- *IMAX – Outperforming markets. Volume decent. Still # 1 choice. Buy the Dip
- MSPD – Volume decent. Consolidating pattern. 50DMA acting as support line. Buy the Dip
Analysis-
- The McClellan Oscillator is at -68 = oversold = Buy.
- The Dollar rules (see above for analysis)
- Good opportunity for traders – The dollar’s decline/flattening may only last a short time and we will probably reach the $88 mark before early June. This would be a better entry point for longer term investors However it is impossible to predict what the European Central Banks will do.
NB – We are going to need some new candidates for YOU Stock List Post them on the blog or send them to me. Please send in no more than 3. Like before, those send in by more than one person will get preference, but I’ll be the final judge. Must past the following two tests.
- 50DMA moving higher
- $5,000,000 a day in sales – example a $10 stock that trades 500,000 shares – price times volume.
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Long Term Outlook = NEUTRAL
AS ALWAYS DO YOUR OWN RESEARCH BEFORE INVESTING
