Investors 411 Blog

by Barr Jozwicki
April 30, 2012

A Big Wet Kiss

Author: Barr Jozwicki - Categories: Market Update - Tags: , , , , , , , , , , , , , ,

A Big Wet Kiss


BFF – The Love Grows

.

.

China Totalitarian Regime

&

America’s Corporate Plutocrats

.

_______

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Two behemoths are moving so close together

its hard to tell them apart

.

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APPL’s embraces China

.

Last week 411 went over GE who pays a net -18.9% corporate tax rate to the USA and a +25% tax rate to a totalitarian regime in China.all

APPL is no different than the other globalized companies that help to contribute to their above  and below the table  support of the communist dictatorship in China.

.

  • Apple’s record profits in its earnings report come from China
  • AAPL like hundreds of globalized American companies pay a 25% Chinese corporate tax,
  • millions of workers  who owe their jobs to American Corporations pay up to a 45% China tax
  • All imported American products are taxed at 25% vs a 2.5% tax on Chinese goods coming to America
  • All this goes to the
    Totalitarian Chinese communist state
    and their military machine
    .
    China’s Latest Stealth Bomber
    .
    .
    _________________
    .
    Across the big Pond

    In the USA
    .
    Sheldon Adelson
    .
    Sheldon Adelson
    (AP Photo/Kin Cheung)
    .
    Macau (China) Gambling magnet  Sheldon Adelson has already has already contributed more money to an American Presidential campaign than any other person in history – At least $35 million.
    .
    Now, because of our plutocrat
    .
    loving

    Supreme Court

    Adelson right wing contributions

    will be


    .
    While we all applaud
    our latest product
    .

.

NB – Investors411 believes in  capitalism that has some order and social responsibility. Not the greed based “free market” casino extraction systems that are gaining control of the world’s economies.


This blog is written on an

Apple Macintosh Computer

&

AAPL is on “YOUR Stock List”

So this editorial is also self criticism

.

Please recognize,

that OUR short term

GREED

has long term

consequences

.

*******************

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STOCKS

.

.

Trends

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  • Earning Result are usually better than expected. This time a lot better. Growth in China often cited as a major factor.
  • Europe – Major trend is many European economies are rejecting sever austerity measures.  Short term stocks may suffer
  • Spanish 10 year Bond Rates [411 uses this as a critical measurement of European/world stock market stability] have stabilized over last three weeks just under 6% danger zone.
  • McCellan Oscillator [411 very successful technical tool in market direction - Tops/bottoms] is nearing overbought territory

.

____________

.

Reading The Tea Leaves

.

..

Technically  - Obvious short term momentum with bulls, but another rally day will bring is into mildly overbought territory. Stock moving higher need two factors. The fact that socialists should win May 6th elections in France should be already factored into stocks.

  • Europe’s canary in the coal mine, Spanish bonds need to stay below 6%. A strong resistance level has been established.
  • Our Fed’s “Operation Twist” ends in June. Traders/Investors/Manipulators need to see that they will continue liquidity dump.
  • Short term bulls will soon get an overbought correction soon if rally continues. Longer term below

As long as the Spanish canary doesn’t chip we’re looking decent for May. If there is no signs of further Fed liquidity, then the old late spring/summer meltdown will probably repeat itself.


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*************************

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PAUL’S Corner

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.

Announcing Brand New

YOUR Stock List

.

.

Your Stock List

.

Here you  go folks, the latest stock list selected by Investors 411 readers! The list includes many of your favorite and well known stocks.

Please keep in mind, its earnings season and some of these stocks haven’t reported yet. It’s your responsibility to find out when your stock reports and the earnings estimate. (That’s not my job!)

There were quite a few great suggestions, but we tended to select stocks that had more votes. This list is entirely made up from your suggestions.

Many of these stocks are currently extended and you should wait for a pull back before a buy.

____________

..

AMZN – Amazon.com, Inc. operates as an online retailer in North America and internationally. It operates retail Websites, such as amazon.com and amazon.ca.

AAPL – Apple Inc., together with subsidiaries, designs, manufactures, and markets mobile communication and media devices.

DDD – 3D Systems Corporation, through its subsidiaries, engages in the design, development, manufacture, marketing, and servicing of 3D printers and related products, print materials, and services.

KO – The Coca-Cola Company, a beverage company, engages in the manufacture, marketing, and sale of nonalcoholic beverages worldwide.

DLTR – Dollar Tree, Inc. operates discount variety stores in the United States and Canada. Its stores offer merchandise at the fixed price of $1.00.

EBAY - eBay Inc. provides online platforms, services, and tools to help individuals and merchants in online and mobile commerce and payments in the United States and internationally

HD – The Home Depot, Inc., together with its subsidiaries, operates as a home improvement retailer.

IMAX – IMAX Corporation, together with its subsidiaries, operates as an entertainment technology company specializing in motion picture technologies and presentations worldwide.

IBM – International Business Machines Corporation provides information technology (IT) products and services worldwide.

LEN - Lennar Corporation, together with its subsidiaries, engages in homebuilding, financial services, and real estate businesses in the United States.

MNST – Monster Beverage Corporation is a marketer and distributor of energy drinks and alternative beverages.

PCLN – priceline.com Incorporated, together with its subsidiaries, operates as an online travel company.

SBUX – Starbucks Corporation purchases and roasts whole bean coffees. It operates 6,705 company-operated stores and 4,082 licensed stores in the United States

TSCO – Tractor Supply Company is a specialty retailer which supplies the daily farming and maintenance needs of its target customers: hobby, part-time and full-time farmers and ranchers, as well as rural customers, contractors and tradesmen

URI – United Rentals, Inc. is one of North America’s largest equipment rental companies with over branches in the majority of states, several Canadian provinces and Mexico.

__________

Disclaimer – Buy or trade at your own risk. Any comments made now or in the future about these stocks are for education only. At time of writing I do not own ANY of the stocks listed.

[Editor's Note. Thanks! - YSL Only works because YOU send in a short list of your favorite stock. Look for a discussion of them in the comments section of blog every day]

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*******************

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Spanish Bond yield over 6% =  NEUTRAL

Under 6% = CAUTIOUSLY BULLISH

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Longer Term Outlook

3 months+

.

CAUTIOUSLY BULLISH

.

AS ALWAYS, DO YOUR OWN RESEARCH BEFORE INVESTING

ALL TRADING INVOLVES RISK & POTENTIAL LOSS OF PRINCIPLE

CHECK ALL DATA, I MAKE MORE THAN GRAMMAR  ERRORS.

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April 23, 2012

Greed Eats Democracy

Author: Barr Jozwicki - Categories: Market Update - Tags: , , , , , , , , , , ,

..

Greed Eats Democracy


.

It Been 23 Years Since China

Massacred Democracy

At Tiananmen Square

.

________________

.

Whose Money Is Nurturing

One Party Communist State?

.

.

Greedy

Oligarchs Love Dictators

and

Hate Democracy

.

A given – Outsourcing – Where US companies send million of jobs overseas because of cheaper labor costs.

  • USAGE was supposed to pay a 35% tax on its $5.1 billion in US profits. Their lobbyists almost own our politicians so instead of paying taxes they have a $3.2 billion tax credit.
  • CHINA – GE pays a full 25% corporate tax in China. Add to that China is the rated second worst country for bribes. We all know major US conglomerates bribe politicians

.

Is GE Alone

Hell NO

.

Hundreds of Major US Companies

Feed the Totalitarian

One Party Chinese State

.

FAIRNESS

.

.

US Corporations give in to the

Chinese Dictatorship

who, with their help, will soon

rule the world

.

Why can’t they pay

more of their fair share here?

.

Choose

.

GREED or DEMOCRACY

..

*******************

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STOCKS

.

.

France/ the Dutch

Austerity or Taxes?

Dragging Stocks DOWN

.

  • Major European markets are down early (6:00 AM EDT - 1.67% to 2.67% ) on news from France, Netherlands and a Spanish Bond Rate over 6.00%. [Check out Link for latest]
  • Elections in France went badly for Sarkozy (center right). Winner – Hollande (center left). Better than expected – Anti Immigration/Euro – (far right) Most see Hollande winning the May 6th run off between him and Sarkozy – BBC report
  • FYI – Hollande wants to consider raising the top tax rate to 75% in France instead of making more and larger spending cuts. Contrast with Obama’s rise to 30% (Buffett Rule)

.

For Investors/Traders

How to Play Europe’s

Political/Economic Problems

.

.

Reading The Tea Leaves

.

The USA currently has the most positive outlook of all the major economies.

.

We are being dragged down by Japan (natural disaster), and Europe. Hard to call what’s happening in China – but hard to imagine 8 to 9% GDP growth continue.

Our top technical indicator –  McClellan Oscillator is at -8.22. Lots of room till we get to oversold or overbought = NEUTRAL

..

  • From Friday – Holding a full boat of long positions is problematic until another liquidity dump by Central Banks.”
  • From Friday -“ Short term play - Short - France, BNP and related banks may have some more short term downside them.” Those of you who shorted the rally in BNP and related banks should get rewarded today. This, also may turn into a position that could last through France’s May 6th election and beyond.
  • Reality – What is a short term negative for stocks is NOT bad for long term economics. If you impose too much austerity, the unemployment rate skyrockets, creating fewer taxpayers and more in need of welfare of incarceration.

  • From Friday – High risk trade – If APPL keeps going down, I may purchase some before earnings or in a dip after earnings.” Still an option. Reasoning – Hopefully AAPL will drop to a technical support level [See Paul's comments] That, and the fact that an earnings miss seems to be getting baked into its Tuesday earnings reports, puts the odds (especially for traders) in your favor.

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*************************

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PAUL’S Corner

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.

Looking at the futures, it appears it’s going to be a down day. French elections show France is about to come to its senses and toss out the austerity regime. It looks like the great unwashed really don’t like what they see in the banksta controlled Europe.

Dr Jeffrey Scott, an HGSI user, last night hosted a great Sunday evening webinar (which I posted a link to Friday and Saturday in the comments section). Great review of the condition of the market and an excellent AAPL chart review. I trust some of you folks caught the webinar.

I posted the following chart review of Your Stock List Saturday for you weekend stock addicts, in case you slept in here is a repeat.

NOTE: at the start of each month we review Your Stock List for additions and deletions, kindly make any suggestions that you might have for the list via email to Barr.

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TRADERS

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CMG – Broke the 17 Friday after it’s earnings release was not well received, buy the dip? See comment:

DLTR – great chart, continues toward the BIG dollar in the sky!  Slightly extended. Using the Ian Woodward/HGSI proprietary “High Jump Indicator” I estimate  DLTR will be an “extended stock” in the area of 101 to 106. at which point you’ll probably will get a pull back or basing.

ENB – 52 week high,

FAST – broke down through the 50, HGSI indicators are red

FL – basing, on the 17

HD – excellent tight chart, buy any dip market conditions permitting

IBM – looks like a bit of profit taking from the old dog. ALL HGSI indicators are red, below the 50.

IMAX – HGSI indicators have turned red, two red/down Kahuna’s the past few days, sitting below lower Bollinger Band, needs to cross up through the middle BB (25.74) before a buy is “safe”.  ** Previous comment from beginning of the month remains, middle of BB is now 23.80.

KLAC – basing on the 17

LEN – great earnings report, gapped up yesterday, buy any pull back. ** Previous comment from beginning of the month, LEN promptly broke down with the market and now sitting on the 50, if it holds above the 50 may be buyable IF housing reports start to improve.

MA – tight chart, buy any dip, buy any dip market conditions permitting

MNST – what a monster of a chart, buy any dip! ** Previous comment from beginning of month remains!

SWI – basing on the 50 & 17, free parking as they say!

TSCO – nice tight chart, buy any dip, buy any dip market conditions permitting

URI – nice $4 pop on earnings release.

WATCHERS

.

AKRX – sitting  below the 50 and crossed up through the 17 Friday, basing, HGSI indicators turning green.

BKI – woof!

KOG – below the 50, below the 17

RYL – sitting below the 50 and the 17, LEN has a better chart and that chart isn’t much better.

DUMPSTERS


SIMO – gapped up on a story of AAPL semi chips being in short supply

CATM – woof, woof, woof!

FTK – buy at your own risk.

Disclaimer - all comments for education only, buy or trade at your own risk. At time of writing I don’t own any of the stocks listed and have been 100% in cash for the past 3 weeks.

.

*******************

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Spanish Bond over 6% = Changed to NEUTRAL

.

This has happened.

Add To This

Continued Meltdown in

European Markets.

.

Longer Term Outlook

3 months+

.


NEUTRAL

.

AS ALWAYS, DO YOUR OWN RESEARCH BEFORE INVESTING

ALL TRADING INVOLVES RISK & POTENTIAL LOSS OF PRINCIPLE

CHECK ALL DATA, I MAKE MORE THAN GRAMMAR  ERRORS.

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February 6, 2012

“Greedy Bastards”

Author: Barr Jozwicki - Categories: Market Update - Tags: , , , ,

The Tip of the Iceberg

.

.

There are two types of Capitalists

.

Those who make a great product or service that befits the economy and the country. This is the American dream and we admire the wealth they create

Then there’s the vampire capitalists or “Greedy Bastards” (Dylan Ratigan term) who rig the game so that they can steal from all Americans.

.

Rewards go NOT to those who compete the Best

But to The Vampire Capitalists who Cheat The Best

.

———–


Last Weeks GE story was the

Tiny Tip of the Iceberg.


Imagine this – For years your done your due diligence and shopped around. Now you buy from one hypothetical GE store. You have just found out that that one store has been for years overcharging  YOU. That store has no integrity.


The Vampire capitalists know it , but the American Sheep just chew grass

.

GE before its Army of lobbyists and layers used to pay, say 20% taxes, on the items you bought. Now they get a $3,200,000,000 tax credit for 2010, so they charge less of a price.

How does this impact you?


  • The tax revenue GE used to give to the government – to reduce the deficit, protect our troops, fund social security, etc no longer exists. You, the sheep/taxpayer, have to make up the difference
  • GE, of course, (a systemic problem in the USA) fires American tax paying American workers and hires more foreign workers . This again adds to the deficit, and strips funding from everything from education to protecting our troops.
  • It gives the vampires a massive advantage over small companies who don’t own both parties.

GE is far from the most vicious capitalist vampires or greedy bastards out there. It’s certainly not the lead vampire.

(Future Editorials)

The difference between the vampire capitalists who “legally” cheat and you is the army of lobbyists and lawyers who have bought both parties.  They make the laws that give  an oligarchy all the loopholes.

They privatize the Gains and socialize the losses to YOU

The difference between the vampire capitalists and you is you have almost no power to change the tax code, trade agreements, or other methods the vampires or greedy bastards are using to strip what used to be the American Dream.

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********************

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STOCKS

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Wall Street Bull and OWS Symbol

.

Short Term Outlook

NB - Please note, if you follow other sites that Investors411 has remained unequivocally

.

“Still CAUTIOUSLY BULLISH.”

.

  • Relatively large rally, in moderately advanced volume on the unexpectedly good jobless report  = Bullish. Today is the confirmation day of Monday’s rally,
  • Repeat from Last Week-” A lot of 2012 has to do with politics. Do we keep the Bernanke/Obama team that has almost doubled the S&P 500 and created a slow, but steady stock and economic growth.
  • The POSITIONS page does not yet reflect the 2012 Outlook. The good part of the 2012 forecast was outlined 1/21, the Bad 1.23 and the Ugly is American politics.

  • Our #1 technical forecasting tool, the McCellan Oscillator (MO) rose to +57.12 . 50DMA at +13.17 (for more see  STRATEGY link at top of blog)  Short term = neutral/BEARISH
  • From Friday – The MO can be read like any chart (see  above link) This is the 6th time in 6 weeks the MO has approached +60. It failed the other 5 times. That’s one very very strong resistance level.
  • The leading NASDQ (If you are trading an index this is the one I’d hold) Is way over extended from its 50 Day Moving Average. It would be healthy for some sort of pullback at this point.
  • Combination Option Trades - IR is under consideration this week. Reports 7:00 AM EST on 2/8 . Long term COT considerations WLT (Takeover rumors) MCP (can move a lot based on rumors and news) and USO (based on potential Iran problems and other factors)

.

********************

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Paul’s Corner

.

Traders, Watchers, Dumpsters!

I hope some of you folks took time to read Ian Woodward’s blog this weekend and to watch Ron Brown’s weekend market report. They both caution the market is extended but also suggest an extended market can go on for a long time. Be sure to check your charts and the market and be ready if necessary to protect your profits.

To add a little order to Your Stock List 2012, we are dividing Your Stock List into three sections.

Traders – stocks that can be traded market conditions permitting. Note, no guarantees are suggested that you will make a dime trading any stock which is listed here.

Watchers – Stocks that have been removed from Traders due to chart action etc. New stocks that haven’t been added to your Stock List may appear here. Once chart/market actions dictate, stocks that are parked here may be moved back into a trading position or tossed into the dumpster.

Dumpsters – the place where lowly, rotten, or  out of favor stocks are placed. If a stock is placed here and you still own it, no suggestion is made that you should sell that loser. (Wink)

TRADERS

AKRX – continues it’s nice ride up the 17. Buyable on any minor dip, reports Feb 28 BMO 02/03/2012 (MidnightTrader) — Shares of Akorn, Inc. (AKRX) are up 3.5% following an upgrade of the company’s stock to Outperform from Neutral by analysts at Zacks Investment Research.

CMG – nice snap back Friday after it’s earnings report Thursday, was a great buy the dip opportunity. Visited a Chipotle store Saturday, they sure know how to remove $20 dollar bills in a hurry.  Riding up the 9 dma.

DLTR – good chart action, buyable with any dip, reports Feb 22

ENB – good chart action after it’s recent dip through the 50.  Extended, unknown earnings date

FAST – enjoying great chart action along with the home builders, extended, buyable in a dip

IBM – At the top of it’s current trading range

KLAC  – good chart action, riding up the 9 dma.

LEN – nice break out Friday, above the 17, slightly extended

MA – crossed up through the 50 dma 2 days ago

MNST – looks to be starting a short basing period, above the 17 and buyable with any small dip

RYL – enjoying the home building move, great chart action Friday, above the 17 and the 9

SIMO – Reported Friday with great results, but suffered a 5 point move during the day, finished in the upper third of the daily candle, which is good. Until the chart proves direction, caution is suggested.

TSCO – Reported Thursday and handily beat estimates but lowered guidance for 2012. Sitting on the 17 and the chart is basing.

WATCHERS

BKI – pulled back after recent earnings report. Sitting on the 50

CATM – rough day last Friday after earnings report. Below the 50, needs to cross up through the 50 before a buy

FTK – pulled back with the natural gas stocks, below the 17, above the 50

KOG – Below the 50, all HGSI indicators red, almost ready for the big green dumpster

DUMPSTERS

The Patriots

On a sad note, I’m sorry to advise, the Craft Community lost another great artist. Fred Odell died Feb 1. Fred was a blacksmith and member of the Pennsylvania Guild Of Craftsmen. He was a gentle soul and lived as an example of how we should live.

As always please make your own trading decisions. All comments above are based on chart action and if you think I can read the charts, I have a bridge I can get you a great deal on.!

.

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********************

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Longer Term Outlook

3 months+

.

Still

CAUTIOUSLY BULLISH

.

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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January 31, 2012

We bring Bad Things to Life

Author: Barr Jozwicki - Categories: Market Update - Tags: , , , , , ,

.

We Bring BAD

Things to Life

.

General Electric

World’s 17th Largest Company


All we want is a level playing field


Trillions of dollars are flowing into an oligarchy of  giant corporate  and wealthy individuals. One group that is  being decimated by this oligarchy is American small businesses.

Mom and Pop want to start a small business in America. They hang up a sign that says OPEN for business.

.

.

Small business are American job creators. In a large part because they have not yet reached the size where it is profitable to outsource major components of their business.

Example: Apple Computer has 43,000 US employees and creates 700,000 jobs in Asia.

The problem is they can’t compete against the giant corporations and their Army of Lobbyists and Lawyers

The corporate oligarchy has one huge advantage

TAXES

Most American businesses are taxed at 35%. That is unless your special like Romney’s Bain Capital and other venture capital firms and hedge funds. Their taxed at 15%

The real problem is giant corporations own the politicians in Washington

What does GE pay in Taxes?


  • GE Had $14.2 Billion in profits ($5.1 billion in the USA) in 2010
  • GE got $10 billion+ in Bailout money because GE Financial was way over leveraged.
  • GE has a huge tax division that is run by & employs ex Treasury and IRS officials.
  • GE was just fined $63 million for IRS violations.

Tax rate – Do they pay

35% – WRONG

15% -WRONG

5%- WRONG

0% –  WRONG

GE in 2010 had a tax benefit of $3.200,000,000

63% Tax Credit RIGHT ANSWER

of what they profited from in the USA

Not only is this an unfair competitive advantage, buy you the tax payer are missing out on billions in potential tax revenue.

In fact YOU (the government) owe GE $3,200,000,000

as write offs on future Taxes


.

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STOCKS

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********************

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Longer Term Outlook

3 months+

.

Still

CAUTIOUSLY BULLISH

.

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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June 9, 2011

“Prius of Power Plants”

Author: Barr Jozwicki - Categories: Market Update - Tags: , , , , , , , ,

Jeff Immelt/CEO of GE

Prius of Power

The giant American conglomerate GE plans to open a hybrid -solar, wind, and natural gas - energy plant that can supply energy for 600,000 homes by 2115. “Imagination at work!”

Jobs, cleaner energy, no nukesBravo GE -Just where is this American company putting this energy plant?

Wait for it. Wait for it. Wait for it - ……………………………………………………… Turkey. Remember the head of GE, Jeff Immelt,  is also the head of Obama’s commission on fixing unemployment in the USA. Thanks Jeff. Great choice Barack

YOUR Comments

Yesterday, in the comments section of the blog you (JS, EW Paul & Popeye) had a lively debate (scroll down) on Germany and Unions. Also lots more on stocks.

Media Matters

The HUGE preponderance of scientific evidence supports human causation as a major factor in climate change.

Yet in the period from Dec. 201o to April 2011 76% of the appearances of guest were against human’s as a cause for climate change. This of course was led by the FOX news outlets.  In a contest of Scientific vs. Media saturation who wins?

_____________

KISS & Stocks

(Keep It Simple Stupid)

If you don’t understand a term look in up aInvestopedia.com dictionary

AS ALWAYS, DO YOUR OWN RESEARCH BEFORE INVESTING!

DOUBLE CHECK ALL DATA, I MAKE MORE THAN GRAMMAR MISTAKES

_____________

Index Percentage Volume
Dow -0.18% Flat
NASDQ -0.97% Up
S&P 500 -0.42% Flat
Russell 2000 -1.19% -

_____________

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Technicals, Fundamentals & Analysis

  • Mirror image of melt UP experienced from November to May. For the last 6 days we have had a melt DOWN in declining below average volume. Complete pattern reversal – From Yesterday - Markets from the introduction of Fed QE 2 moved higher on weak volume, now [with the impending end of QE #3] they are moving lower on weak volume ( Note – NASDQ did have slightly above average volume)
  • Emerging Markets, especially China are the world’s hope for growth. China is experiencing Inflation = Almost always inflation is bad for stocks.  Three views SF Chronicle & Reuters CNBC If the worst of these happens (CNBC) and “China’s inflation gets out of hand” we are all in trouble.
  • The McClellan Oscillator (MO) chart fell to -63.83.  US Stocks are oversold. A “snapback” oversold rally is possible.
  • MO did reach -90 in March and - 130 last May after the end of QE #1.

  • Reading The Tea Leaves -There is a high probability that we will reach -90 to -130 on the MO this summer. Still holding to May 20th forecast for this summer.


_________________

Paul’s Corner


Oh The Pain and Agony!

This market keeps ticking off, and it’s extremely over sold, we should have a decent bounce any day now. Yup any day now! Any day now fer sure! Although volume was up yesterday we still haven’t had a high volume blow off of a day. OPEC didn’t help at all today and Bernanke’s comments Tuesday seem to have put a few nails in the coffin.

Market internals aren’t getting any better, the only  groups up bedside the VIX were the oils.  60% of the S&P 1500 stocks  are below their 200 DMA, that isn’t good. The MO summation index has turned decidedly down and the MO has more room to fall. SOXS the 3X bear Semi ETF was up 6.1% Wednesday.

The Finance Equity Reits were top  in the high demand search.

Fin-Equity Reit (12.00%, 12 securities)

  • American Campus Communities (ACC)
  • American Capital Agency Corp (AGNC
  • Annaly Capital Management  I (NLY)
  • AvalonBay Communities  Inc. (AVB)
  • Camden Property Trust (CPT)
  • Digital Realty Trust  Inc. (DLR)
  • Dupont Fabros Technology  In (DFT)
  • Equity Lifestyle Properties (ELS)
  • Equity Residential (EQR)
  • Public Storage (PSA)
  • Simon Property Group  Inc. (SPG)
  • Tanger Factory Outlet Center (SKT)

A lousy day and why not, a search for the best stocks under $10 as selected by HGSI:

  • BDE
  • BNA
  • CERP
  • IMOS
  • CDTI
  • CLFD
  • FTLK
  • GENE
  • KKD
  • MHLD
  • MDF
  • NR
  • QPSA
  • SQNM
  • HCKT
  • TWER
  • WSTL

I have no idea if any of these woofers are worth buying, some have decent charts. You are on your own looking at these stocks.


So what’s the market going to do today, futures are up this morning, is this a new morning in America? Let’s load up Quote Tracker and find out………here we go folks another day of fun!

Remember, you are responsible for your investment decisions, and I am not.  Please do your diligence, and please take ownership for your actions.

___________________

Positions

Below – Investors411  hypothetical portfolio that should outperform the S&P 500.

SLV/AGQ (very roughly 2x silver) Sold 1/2 for +3% profit. Have a sell order in on balance for 3% loss. Considering selling into rally.

REMX(Rare Earth metals) Investors has a 1/2 position in this ETF. Sold at/near open for 25.31 = -2% loss. Total for REMX trade = -1%

NLYAnnaly Capital Mgt. Ultra high dividend stockCautionNLY and similar stocks are going elliptical  in heavy volume – usually a sign of a climax run – simply put – so many buyers jump in that the stock runs out of buyers in the short term and takes a hit. We saw the same in silver a month or two ago. Another day of heavy buying would be a bearish short term sign. For NLY the 1.04% gain yesterday is HUGE.

IMAX – Imax Corp. (3D)  Sold at/near open for 35.65-2% loss

TZA – (3 tomes short small cap stocks)

Bought 1/2 position in TZA (3x short small cap stocks) at 38.65 on Tuesday   Added another 1/2 position to TZA at 39.75 at/near open yesterday

Will consider adding another full TZA positions on a moderate market rally. Otherwise will add a 1/2 position in TZA on minor rally.

The US stock markets have stapled a message in the head of Fed Chair Ben Bernanke. - We are not going to buy until you give us more liquidity/stimulus.

The question becomes how low can you go?

RepeatTherefore Strategy is clear -

  • Short any rally - Investors411 will use TZA (3X short small cap stocks) and SDS (2x short S&P 500 more conservative) .
  • Sell long positions into any rally -

Disclosure - I own SLV, NLY, & TZA -

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The Fed has moved from an expanding money supply to a neutral – No QE #3. Congress is threatening to contract the money supply. “We [the USA]need to grow at this point more than anything else. Investors411 outlook will remain negative on the USA unless the Fed and/or congress return to more pro growth policies.

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Longer Term Outlook

Neutral/CAUTIOUSLY BEARISH

AS ALWAYS, DO YOUR OWN RESEARCH BEFORE INVESTING

ALL TRADING INVOLVES RISK AND POTENTIAL LOSS OF PRINCIPLE

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April 14, 2011

Top 3 Investments for 2nd 1/4

Author: Barr Jozwicki - Categories: Market Update - Tags: , , , , , , , , , , ,

Rolling Stone Photo – Wall Street Wives

If you haven’t taken your blood pressure medication this AM – Please take an extra dose before reading below.

Wall Street WivesMatt Taibbi from the Rolling Stone has come up with another jaw dropper. Remember Geithner and Bernanke’s Wall Street Bailout. Seems that the “wives of   JPMorgan bigwigs walked away with $220 million dollars.Opening line of editorial – “Most Americans know about that budget. What they don’t know is that there is another budget of roughly equal heft, traditionally maintained in complete secrecy

The Closing Government Soap Opera. – Remember all the media attention of the $38 billion the Republicans were supposedly cutting from the budget. Two days ago the press went bananas when they found out it was only $14 billion. Yesterday the non partisan CBO put the actual figure at $353 million. Yes, that’s million with an M.

Crony Capitalism - It’s simply not fair to put the blame on the real housewives of of Wall Street or JPM. Now that the Fed was forced to open its books we find out the real husbands at Goldman Sachs got (See Matt Taibbi’s piece) $800 billion from the Fed. Yes, that’s billion with a B.

Get out of Jail Free - The US Treasury Department actually used hash language toward shadow bankers in a sternly worded proclamation Remember the phony foreclosures, robocalls etc. reveled months ago. Billions evaporated thousands lost their homes. Bankers got a tender tap in their wrists. The NYT has finally caught on and its headline story is on No one from Wall Street goes to Jail

GE is to return $3.2 billion tax rebates!? The whole AP story turned out to be a hoax. YOU pay taxes, GE doesn’t. – Bummer

The Prestigious Pinocchio Award. The Japanese government has been less than than honest about the nuclear reactor situation. FYI – TEPCO has just confirmed reactor 4 is open air fussionYANKEE BOB is back in the comments section (scroll down) with an editorial. Here’s a sample – “the gamble with public safety to use Nuclear energy to boil water has failed.”

Maybe we’re more than just a morsal for Wall Street sharks. EW in the comments sections saw Obama’s deficit speech as hopeful – Obama quotes “There’s nothing serious about a plan that claims to reduce the deficit by spending a trillion dollars on tax cuts for millionaires and billionaires,” …. “There’s nothing courageous about asking for sacrifice from those who can least afford it and don’t have any clout on Capitol Hill. And this is not a vision of the America I know.”

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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

Today a format change to focus more time on three investments for the 2nd quarter. But first here’s market news

  • Fed’s ZIRP (Zero Interest Rate Policy) & QE 2 is sustaining stock rally and forces anyone who wants a high yield is forces into higher risk stocks,  or junk bonds.
  • Yesterday’s action was no more than a pause (slight uptick) and we’re close, but haven’t reached oversold levels or a buy the dip level yet
  • Paul often makes closing remarks in the comments section of the blog. From yesterday – “If any of you folks like to study the charts, you’ll see on many of the major indicies a clear “double top’ and that often signals coming hell fire and brimstone’s”

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Three Top Investment Areas

Rare Earth Metals - REMX (link to chart)

REMX is the ETF that tracks the major rare earth metal companies. Most data below is from Van Eck Global owner of REMX ETF.

This is a simple supply/demand story. The demand outstrips the supply. China currently provides 97% of rare earth metal production. InDec. of 2010 China announced it would cut exports of rare earth metals 35% because to keep some for their own use. REMX has only 17% exposure to china. It takes a long time to mine these metals so many of the companies REMX invest in have yet to become major producers. Obviously the companies/mines outside China are ramping up production as fast as possible.

Some applications for Rare earth metals include hybrid cars,steel alloys, wind turbines, flat screen TV’s, jet engines & cell phones. So you can understand the demand.

Downside risk – If we fall into a second recession or depression REMX will suffer. However it should outperform because of the supply/demand issue.

Gold - GLD & DGP (2x or ultra long gold)(both ticker symbols are links to charts)

GLD & DGP (2X) are the ETF’s that track gold prices. Obviously DGP carries twice the risk/reward.

Arguably the #1 source for gold information is GFMS Reuters last week featured their supply/demand analysis on both gold and silver. The fundamentals are relevant, but we all know, gold prices move higher on fear of the future.

I follow Jesse’s Cafe Americain on both gold and silver. The technical analysis and inside information is superb. In the future Investors411 will give updates from this site.

SilverSLV & AGQ (2x silver) (both ticker symbols are links to charts)

SLV & AGQ are the ETF’s that track silver prices. Obviously AGQ carries twice the risk/reward.

Silver has more industrial uses. Links to important information on silver above.

If you are considering investing in this area or just want a good laugh you have to watch one of the two bears videos on silver. “You want me to buy more silver? Holy s–t man I’m going to s–t my pants.”

Paul would be a great source on individual gold, silver and rare earth companies if you are interested ask. MCP is the one company that I like in rare earth field. We almost put this on YOUR Stock List #4, but decided REMX would cover the sector.

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Positions

The POSITIONS Section at top of the blog is a link to 4 different portfolios. It’s full of investment idea. The actively managed portfolios #3 &4 - Aggressive ETF Trading & Your Stock List can be found in the POSITIONS Section of blog

I have personal  positions in REMX, RJA, SLV, EWV, (Note – sold UWM into rally) In fact the single largest investment for a non profit I’m the treasurer of is GLD for the past 5 years.

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Look for Paul R’s always enlightening remarks on stocks and sectors in the comments section of the blog. See ”POSITION“ section of blog (at top of page) for lists of potential stocks & ETF’s including ”YOUR Stock List.”

Longer Term Outlook - CAUTIOUSLY BULLISH

AS ALWAYS, DO YOUR OWN RESEARCH BEFORE INVESTING

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March 28, 2011

Black Swans

Author: Barr Jozwicki - Categories: Market Update - Tags: , , , , , , , , , , ,

JapanTEPCO in Japan has finally called for outside help. Even Greenpeace is on the ground saying their readings differ from TEPCO’s (science over politics) Common Dreams web site has a fascinating  real time tweeter updates TEPCO admits protracted and uncertain operation to contain crisis. Here the short version of the best video yet on the tsunami

Taxes –  GE made $14.2 billion in profits last year and over $5 billion in the USA. Guess how much they paid in taxes last year year Wait for it, Wait for it,  Wait for it – ZERO.  Now remember your taxes are due by April 15. Only in America

Financial Reform – Seems that virtually all Republicans and some Democrats are doing everything possible to make sure that those too big to fail shadow banks that destroy the meager measures the Dodd/Frank Bill put in place. The NYT’s lead editorial yesterday

Libya – This call may be premature, but it looks like after the allied/UN air strike many who supported Ka Daffy are changing sides. At least his army in the eastern 1/2 of the country has melted away. Al Jazeera reports no resistance to rebels in his home town. Huffington Post live blog

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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

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Here’s the chart that demonstrates what Investors411 has been saying  since last year and why the Bulls Rule in our liquidity driven Fed manipulated stock market. (I realize most of you are sick of me saying the above again and again, but NOW is the opportunity to profit from this)

  • This chart was done by Kevin McCElroy from Seeking Alpha.
  • Want to know more? – Impact of POMO on Dollar by LFB from SA

.

Index Percentage Volume
Dow +0.41% down
NASDQ +0.24% down
S&P 500 +0.32% down
Russell 2000 +0.83% -

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Technicals, Fundamentals & Analysis

Investors411 record - 6 years of beating benchmark S&P 500

BUBBLE-ICIOUS - Investors411 term for the stock market – We are all riding on the outside of an ever expanding &  Central Bank manipulated liquidity stock bubble. See Investors411 STRATEGY section for more

  • Another weak volume liquidity driven manipulated rally on Friday.
  • On the surface it looks like the rag tag exuberant bunch called rebels in Libya are winning, because oncee air strikes clobbered exposed military units resistance became almost non existent – For stock = bullish. For oil = Bearish For Ka Daffy = Bearish
  • Black Swans (Big event bad news) everywhere. From John Nyaradi on this week’s outlook in stocks. Remember bad news is more often than not an elixir for stocks because it means a stronger possibility of more quantitative easing.

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Shorter Term Forecasting Indexes

  • The Dollar (USD) [Any daily price move over +/- 0.50 is significant. Dollar usually moves inversely to stocks]   The dollar rose significantly +0.74% Bearish longer term pattern still in place, but we have started a three day bull run For stocks = Bullish/Neutral
  • McClellan Index(MO) [The very rough guideline is over +60 = overbought market = sell positions or short stocks, & -60 = oversold market = buy stocks .] MO rose to +24.38 Getting oversold. Over past three months The MO has had problems getting over +30 = Bearish /Neutral

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.

Reading The Tea Leaves

The Bulls have had a stellar 7 day run in weak volume. (weak volume rally= calling card of a liquidity driven manipulated market)  They are starting to come up against some technical resistance that may slow them down – A rising dollar and the MO nearing overbought levels. “Merger” Monday  has historically been the best day of the week. If Ka Daffy supporters don’t have the stomach for a fight you could see rally continue. The however  perversely good news (lower oil prices if Ka Daffy looses) may turn out negative because it would mean less of a chance of QE ##

Short term rising dollar and oversold levels should hold bulls back this week.

War room

Every major group of traders is sitting in their war rooms discussing the end of QE #2 (quantitative easing) and how it will impact markets before/on/after June 30th (ending date)

Will the Fed do a QE #3? Since we have over 3 months till this happens bulls should rule unless too many traders front run what they perceive is the end of quantitative easing. Frankly, there are whole mess of investors out there who believe there will be a QE #3.

So best read of tea leaves is still bullish till June 30th. More low volume rallies. (see chart above)

What to watch today

  • USO - ETF for oil - Oil up = stocks down - Now back above $100. - Headlines from Libya.
  • UUP - (Tracking ETF for dollar) Remember - The dollar is a contrarian indicator. Bad dollar = good stocks
  • AAPL – Trading below 50 day MA is bearish.
  • Japan Rector Developments

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Positions

The POSITIONS Section at top of the blog is a link to 4 different portfolios. It’s full of investment idea. Below is the actively managed portfolio #3 – Aggressive ETF Trading – To follow this and Portfolio #4 Your Stock List keep an eye on the daily blog and the comment section.

(I do manage 6 accounts that have other positions).

Current ETF Positions. (oldest held positions listed first)(see comments section where all trades are first announced.

  • UWM. (2x long small cap stocks) Sold 1/2 for +5% gain. Remainder up  8+% now
  • A Hedge – Friday bought UWM at 47.00 & EWV (2x short Japan) at 35.81 (see comments section of blog)

UWM – - Sell order  for original UWM position is a 5% trailing stop

ETF’s currently Under Consideration.

EWV for those who love risk is the ETF that is ultra short (2x) Japan. Problems there are under estimated and/0r covered up.

UCO -(2x oil prices) Why not, its also a hedge against higher gas prices. - approaching highs of last month & 2010 – I do own this ETF in other accounts and have sold covered calls on some of it.

REMX (Rare Earth ETF) - Really believe this a good long term holding. Dipped in front of a strong resistance level.

DGP – (ETF is 2X gold)also SLV (silver). Breakout on worries of future inflation – Gold is moving inversly to the dollar

DBC - (Commodities ETF) For a more complete list of commodity ETF’s see POSITIONS listed at top of blog  DBC is tilted to energy.  A good alternative would be DJP that is more agriculture and metals -

RJA (Agriculture commodities Index)An ETN, not an ETF.

UWM (2x small cap stocks) TNA (3X small cap stocks)

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Look for Paul R’s always enlightening remarks on stocks and sectors in the comments section of the blog. See POSITION section of blog (at top of page) for lists of potential stocks & ETF’s including “YOUR Stock List.”

Your Stock List seems to be turning the corner and has 5 breakout stocks

3 of the 4 major indexes are above their 50 DMA’s and the NASDQ is sitting on its 50 DMA.

Longer Term OutlookCAUTIOUSLY BULLISH

AS ALWAYS, DO YOUR OWN RESEARCH BEFORE INVESTING

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March 13, 2009

Market Updates – Opened a Can of Whup Ass

Author: Barr Jozwicki - Categories: Market Update - Tags: , , , , , , , , , , ,

The Bulls retake the mother of all support/resistance levels. Are the Bailout Banks lying? Why Pakistan’s lawyers matter to you. Obama’s gets earmarked. Why you should date and not marry stocks and who got clobbered last night in the Jim Cramer (CNBC/financial channel) vs. Jon Stewart (comedy central) Showdown.

Jim Cramer, Jon Stewart
CNBC Photo/Giovanni Rufino; Kevin Fitzsimons/Comedy Central
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Opening a Can of Whup Ass


Jim Cramer and the financial channel got roasted, toasted and devoured last night by Jon Stewart.  Even Cramer on his 6:00 PM EST Mad Money show fessed up to the whuping that eviscerated financial reporting on CNBC.  The #1 financial channel has for years been little more than the head cheerleader of the unregulated capitalism and debt.   For more see E news story or video at Comedy Central
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Are Bailout Banks Lying? 

(See comment section comments by Robert H)

The old joke applies – How do you know a banker’s lying? -His/Her lips are moving
Answer – Yes and No.  It all depends on the accounting method. These bailout banks are borrowing money from the taxpayers and Fed for nothing and making a killing every time they loan the money out.  However, most have huge amounts of growing over leverage toxic assets that they do not want counted on the books. By standard mark to market accounting most major banks, like Lehman Brother, and AIG are insolvent.
 Looks like Congress (major hearing yesterday on this) will “relax” mark to market accounting. Full story from Financial Times
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Pakistan’s Lawyers March

`

Afghan/Pakistan is the center of Islamic terrorism. It has been that way for over a decade. Many brave lawyers are marching from all over Pakistan to protest the government not reinstating the Supreme Court that was dismissed under the dictatorship. Aljazeera reports on the long march for justice.
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Obama get Earmarked

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Barack blew it when he approved a budget that contained almost 2% earmarks.  OK some of these earmarks are relevant, but the focus was suppose to be on creating jobs jobs, jobs then energy, health care and education, not congressional members pet projects. Story from MN Star Tribune.

AS ALWAYS DO YOUR OWN RESEARCH BEFORE INVESTING!

Stocks

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Index Percentage % Volume
Dow +3.46% down
NASDQ +3.97% up
S&P500 +4.07% down
Russell2000 +6.50% -

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Technicals & Fundamentals

US and many world markets rallied again.  This time volume did NOT confirm the rally.

The Mother of All Resistance/Support Levels Falls Again -

Benchmark S&P 500 area @ 741 was retaken by the bulls. SPX closed at 752. (see Investos411 posts for end of Feb for more on this critical  technical support level) Remember its called support on the way down and resistance on the way up.

This is very significant , especially in the long term.  We broke down through the 2003 support level for about two weeks. When you think in terms of months or years the last two weeks is just a crack.

The longer we can trade above 741 the better it is for the bulls. If we can hold above this level for a week, the long term Outlook will be upgraded to Cautiously Bearish

Why You Should Date and Not Marry Stock Markets

One word – Voilitilaty.  

What’s happened is an oversold market rally. We’ve had two rallies that have gone up @20% since October. This one is a little over 1/2 way to that 20%.  The falling volume yesterday is a technical reason to worry.

But short term bullish signs are abundant -

  1. GE’s bond rating was cut yet GE was up 12%. Major companies and markets moving higher on bad news is very bullish. 
  2. Even more important is the willingness of congress to drop Mark to Market rules (see above). XLF the financial sector ETF (up 10+% yesterday) is on fire because banks will NOT have to show or mark to market their toxic assets. 
  3. The breaking of the benchmark S&P 500 – 741 resistance/support level

CAUTION: All the old problems still exist.  Technically ,retesting the bottom (an ominous 666 on the SPX) is more likely than not.

But right now ride the wave. Two days ago Investors411 suggested it was time to “nibble” again (for investors with large cash positions)  

Best Guess – flat day and rally continues next week. But, if volume continues to fall duck and cover.

Ben Bernanke will be on TV show 60 Minutes this weekend

 

Long Term Outlook = BEARS RULE

See STRATEGY, POSITIONS, OVERVIEW  & ARCHIVES sections of blog for more

AS ALWAYS DO YOUR OWN RESEARCH BEFORE INVESTING!

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March 2, 2009

Market Updates – Stiff Upper Lip

Author: Barr Jozwicki - Categories: Market Update - Tags: , , , , , , , , , , , ,

 

 

A Stiff Upper Lip 

You’ve got to admire the Brit’s for their stiff upper lip. Across the pond they’re in a lot more trouble than we are from England to the Ukraine. Most of the emerging democracies of Eastern Europe bought into what they thought was the American dream. It turned into an over leveraged toxic asset bubble with banks/countries wobbling on the cliff of insolvency nightmare.  

But at least the Brits  have some degree of transparency. Here almost everything  except the amount of bailout and stimulus funds is a deep dark secret. Take the deeply troubled Bank of Scotland now all but completely nationalized by the Bank of England.

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Transparency

The Royal Bank of Scotland has put admitted to  $722 billion of “troubled assets” of over leveraged toxic debt and are trying to wind down those liabilities. This loss is staggering England with about 1/5th the gross GDP of the USA.  But, they are dealing with the problem in the open.  We don’t even know the staggering amount of over leveraged debt of AIG, GE, GM or any of our major/minor banks.  The only thing we do know is the near meltdown of the financial system when Lehman Brothers went belly up and its toxic debt brought the entire worldwide banking system to its knees.

Unfortunately we also know this problem is going to get worse. Because more defaults are on the way,  unemployment is growing, home prices declining, and esoteric mortgages will soon start charging higher rates of reurn.

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Obama Pass/Fail

Let’s give the guy credit for a transparent budget. He’s getting some excellent reviews because he stopped hiding many items like the Iraq war as part of the overall budget. 

But on the other hand he’s getting clobbered with his rosy economic assessment of the future. Whose he kidding? The US GDP will be -1.2% this year and +3.2% next year. A consensus of Economists believes otherwise as Peter Goodman in NYT point out. (Many thanks to one of you who emailed me this article)

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“Geithner’s Folly”

Our new Sec. of Treasury has come up with something called a “stress test” for big banks.  Let’s get real. The vast majority of these toxic institutions invented the stuff that the Bank of Scotland has already admitted to. Big banks are broken. Wake up and smell the coffee – Geithner “is asking the wrong question. The question he is posing is: how can the government save Citigroup? The right question is: how can the government rebuild the banking system?”  Bob Kuttner, columnist for BusinessWeek, Boston Globe and co founder of the American Prospect on no matter how good the rescue plan is it doesn’t matter a lick if you don’t fix the banks.

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AS ALWAYS DO YOUR OWN RESEARCH BEFORE INVESTING!

Stocks

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Index Percentage % Volume
Dow -1.66% huge
NASDQ -0.98% up
S&P500 -2.36% huge
Russell2000 -1.00% -

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Technicals & Fundamentals

Just about every front page is covering the biggest ever quarterly loss - $62 billion by AIG. 

From Friday“The Ugly news” would be - “The SPX ends closing  a bit below 741.  This would just establish a lower low (see chart on right side of blog) and further entrench the bears rule chart pattern.”  

The SPX ended up at 735 (A bit below its mother of all support barriers) and technically this along with no climax selloff  shows there’s more down side to come. Perhaps today we may see a climax selling panic today and a chance to nibble. To have a “climax” sell off you need both a big fall and big volume.

Big news of the week is the employment numbers for February come out Friday. 

Reading the Tea Leaves – How many Danger Will Robinson Danger Danger signals can there be?   – Hope you protected any long investments.

 

Long Term Outlook BEARS RULE

 

See STRATEGY, POSITIONS, OVERVIEW  & ARCHIVES sections of blog for more

AS ALWAYS DO YOUR OWN RESEARCH BEFORE INVESTING!

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February 26, 2009

Market Updates – Jobs, Jobs Jobs

Author: Barr Jozwicki - Categories: Market Update - Tags: , , , , , ,

 

Index Percentage % Volume
Dow -1.09% up
NASDQ -1.14% flat
S&P500 -1.07% up
Russell2000 -2.68% -

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News

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Worried – Your Job/Income?

In about a week the jobs (unemployment #’s) will come out for the month of February. 598,000 was the number for January and the previous two months were about the same. Estimates for February are in the same ballpark. To understand the depth  of  “the great recession” lets compare the job loss with the last 2 recessions of 2001 and 1990 – How Bad Is It Now? (Link from Time & CNN)

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What Job Loss Means -

Almost Everything – Consumers (70% of the economy) consume a whole lot less when they loose their jobs. The unemployed are no longer able to afford their mortgages payments and more defaults will occur in the worst housing and credit crisis since the Great Depression. Add to this our media that over sensationalizes every major story and Americans who are very vulnerable to fear mongering. If not stopped, the  job losses create a vicious growing cycle 

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The Edge of the Cliff

The #1 Insurance Company (AIG), American auto Industry, the #1 conglomerate (GE – stock price dropping like a stone) and mega banks are on the edge of a cliff.  If all these were allowed to collapse like Lehman Brothers (a relatively smaller institution that had $400 billion in over  leveraged debt) imagine what would happen to the unemployment rate, increased debt, and the panic that would follow. Again see link - How Bad Is It Now?

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Solutions

Some on the far right want to do nothing, just let it all crash and burn. The following worldwide economic chaos would easily lead to wars, protectionism, and another Great Depression. Others believe we should act in similar ways that solved other recessions – Bailouts, stimulus packages, tax cuts, increased money flow, lowering interest rates etc.. The problem that exacerbates any active solution is that since 2000 our fiscal and trade deficits have mushroomed

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Who Pays for the Solutions?

This is along with what solutions to choose is the major questions confronting our government. So far lowering interest rates, Fed loaning/printing money, & foreign countries adding capital have been relatively less controversial ways of offering solutions.  But its not working nearly as well as we want it too.  So that leaves the following to pay – YOU (taxpayers), Shareholders, Bond holders, Employees (from CEO’s or gofor’s) or another Ponzi scheme.

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There is Hope

Obviously, not enough time and space to go over all the solutions. However, President Obama has outlined his plan and the vast majority of Americans have agreed to follow his general outline.  There is NO quick fix and its going to get worse before it gets better. See yesterday’s blog.

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AS ALWAYS DO YOUR OWN RESEARCH BEFORE INVESTING!

Stocks

-

Technicals & Fundamentals

Another huge volume day. Stocks pulled back about 1%.  Our mother of all support levels has held - Benchmark S&P 500 area around 750 – the 2002/2003 low. Stocks are oversold so it looks like at least a short term technical rally off the support levels will occur. 

Two major fundamentals impacting markets. Jobs numbers for February announced next week and Treasury Secretary Geithner’s plan on how to fix banks. On the later, the more YOU pay to fix the bank the better it is Wall Street. 

Weekly jobless claims grew (announced 8:30EST) from an average of 633,000 to 667,000.  Bottom Line  - Worst than was expected numbers and gives you an idea how bad February will be.  

 

Long Term Outlook BEARS RULE

-

See STRATEGY, POSITIONS, OVERVIEW  & ARCHIVES sections of blog for more

AS ALWAYS DO YOUR OWN RESEARCH BEFORE INVESTING!

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