Investors 411 Blog

by Barr Jozwicki
March 4, 2011

Real News

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

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Real News

Be still my beating heart, Hillary Clinton, gets it and she’s not afraid to tell the world.

Our Secretary of State, Hilary Clinton launched a verbal broadside against American media and its headlined in the Huffington Post One of the sheep/cows has woken up to the fact of just how phony American media is.

Clinton -

  • Al Jazeera offers “real news”
  • US is loosing “information war” in the world

“You may not agree with it [Al Jazeera], but you feel like you’re getting real news around the clock instead of a million commercials and, you know, arguments between talking heads and the kind of stuff that we do on our news which, you know, is not particularly informative to us, let alone foreigners.

More Sophisticated Trading

One of Investors411 mottos is to try to keep it simple. So the following is a bit out of context, but it involves two long term position which I hold and you may be interested in. They involve leveraged ETF’s UCO and TMV, & the use of covered calls.

  • TMV is 3x leveraged (bearish) to 20+ year treasury bonds. I think inflation is inevitable because of all the quantitative easing and yields will eventually rise.
  • UCO is 2x leveraged oil prices. I think, because of growing demand and limited low cost oil higher prices are here to stay.

I have bought these stocks and sold/opened a call option on them. Example – I bought 100 shares of UCO last week at $51, and sold a call at $55 for March 18th. This means the other person has the right to buy my UCO for $55 on the 3rd Friday of the month. That person payed me $160 to do this or about 3% premium. So I made 3% already and on March 18th if everything works out I can sell another covered call on the same UCO and make another premium. Sweet, but there are dangers and lots of other factors involved.

  • Sorry ran out of time and I’ve just started. - to be continued. – see comments section later today for more.


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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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Index Percentage Volume
Dow +1.59% up
NASDQ +1.84% flat
S&P 500 +1.72% up
Russell 2000 +2.22% -

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Technicals, Fundamentals & Analysis

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

BUBBLE-ICIOUSInvestors411 term for the stock market – We are all riding on the outside of an ever expanding &  Central Bank manipulated stock bubble. See Investors411 STRATEGY section for more

  • The same old Fed manipulated stock bubble building trading pattern gains in small volume. This time is was BIG gains
  • The impact of higher oil prices around the world has become a threat to globalized growth and US markets have not yet decided the impact higher oil prices
  • Many forced to cover short positions, so we had a big swing up
  • Oil prices above $100 (now for two days) will have a bigger impact on emerging markets than the USA. So the longer prices stay high the worse it is for the economy and eventually stocks.
  • Alan Greenspan’s view on the economy
  • Jobs report for February below – Remember a good jobs number means the more likely quantitative easing will end sooner rather than later and/or there will be no QE #3. Scheduled ending June 30th. So good news on jobs may be bad news for stocks.

Employment numbers for Feb. are - 8.9% unemployment Figure and +192,000 jobs created.

Good headlines for the public and about what was expected. AP on numbers

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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] Dollar fell again. This time -0.24% yesterday . Oil prices now are by far the #1 forecasting index (see below) For stocks dollar short term trading pattern = Bullish
  • 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  +24.63Over the last three months the new parameters seems to be +/- 30 as an overbought/oversold level. MO Stocks outlook = Neutral/Bearish

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Reading The Tea Leaves

The McClellan Index has worked almost flawlessly over the past few months. Check out the chart above. Therefore, with the MO at +25, in the short term we are probably very near a top. Longer term trend is still with the bulls.

What to watch today

  • USO - ETF for oil - Oil up = stocks down
  • UUP(Tracking ETF for dollar) Clear 2 month pattern of bears ruling Remember - The dollar is a contrarian indicator. Bad dollar = good stocks
  • AAPLBounced off its 50 DMA support level. Back approaching new high

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Positions

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

(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)

  • REMX (1/2 position, took 5+% profits already) Inched out to new two month high yesterday
  • RJA 1/2 position, took 5+% profits already)
  • UCO -
  • UWM was bought  yesterday at 47.34

Another 3% trailing stop today on both REMX & RJA today.

UCO -Will sell 1/2 of UCO if profits exceed 5%. 5% trailing stop

UWM – A +25 on the MO shows there is not a lot of upside left in the UWM. So will probably sell into small rally and have set 3% trailing stop. Buying with such a high MO was probably a mistake.

Will post when I buy/sell in comments section of blog.

UCO -(2x oil prices) Why not, its also a hedge against higher gas prices.

REMX (Rare Earth ETF) - Really believe this a good long term holding.

DGP – (ETF is 2X gold) . Set to follow silver and approaching breakout. Broke out to new all time high and has started to pull back. Buy the dip to 17 DMA

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 - Both DBC & DJP are on breakout runs. Buy the dip to 17 DMA

RJA (Agriculture commodities Index)An ETNnot an ETF. Hopefully longer term holding. .

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.” (YSL#4 is under construction.)

Longer Term Outlook - CAUTIOUSLY BULLISH

AS ALWAYS, DO YOUR OWN RESEARCH BEFORE INVESTING!

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March 27, 2009

Market Update – A National Disgrace – US Justice

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

“A National Disgrace “- The American Justice System. South Park – Bailout video. Update on Iraq. A Berlin wall separating 39 million Hispanics from 135 million Mexicans. Pat Buchanan solution to the drug problem. The rising Red River. Over bought stocks market’s short term outlook 

Lady of JusticeLady Justice by Rodringo Duran

“A National Disgrace” US Justice System

Senator Jim Webb (D VA) words at the introduction of the 2009 National Criminal Justice Act. Webb - With 5% of the world’s population, our country now houses 25% of the world’s reported prisoners. That’s just his opening in a laundry list of problems

Of course you’re wondering if any of the criminals who run the Shadow Banking System and robbed Americans of trillions will ever see the inside of a prison.  We, by far, run the largest police state of any civilized democracy, but if you’re wealthy shadow banker?

South Park – Bailout

 A 30 second You Tube video

Iraq’s Civil war

American corporate media has ignored the fact that the Shia have almost wiped out the Sunni’s in a bloody civil war that is still simmering. Baghdad once a majority Sunni city has now less than 15% Sunni according to Juan Cole’s Informed Comment blog. The latest on the Iranian backed Shia’s that control a fearful and divided Iraq/Baghdad – AP story

Mexico

Far more relevant than Shia dominating Sunni’s in Iraq to the US will be the 39 million Hispanics in the USA we are trying to separate from the 135 million Mexican’s by a wall. We will have to turn into what communist East Germany was when they erected the Berlin Wall to make this work or find a different solution.

Hillary Clinton is leading a diplomatic effort to Mexico that will culminate with an Obama visit. ” Clinton – “The U.S. shares responsibility for its neighbor’s drug violence. Now we must be just as smart about our ‘help.’” More from LA Times on Clinton and the Mexico Message

Hillary, is winning kudos as Secretary of State,

Solution to the Drug problem

Conservative/Libiterian Pat Buchanan often offers a choice in solving the “weed” problem.

  •  Do what chairman Mao did and kill all the dealers and users
  • Legalize it like cigarettes & alcohol, then tax it.

Legalizing pot would take a whole lot of business away from the violent Mexican cartels that operate in 230 American communities and account the 1200% increase in drug offenders in the USA since 1980. (stat source Jim Webb, point of view – mine)

The Red River

Just turn on the weather channel. The Red River in Fargo/Moorhead is cresting above 40 ft. (new record) in 6 below zero temperatures this AM. Best wishes to several bloggers and a grandson & granddaughter who live a few hundred yards from this river.

AS ALWAYS DO YOUR OWN RESEARCH BEFORE INVESTING

 

Stocks

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Index Percentage % Volume
Dow +2.25% down
NASDQ +3.80% up
S&P500 +2.33% down
Russell2000 +4.40% -

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Technicals & Fundamentals

Message to stock Market – from the 60′s  song “Feeling Groovy” – Slow down, you’re moving to fast… You’ve got to make the morning (rally) last.

Almost every technical analyst likes to see consolidation before moving higher.  This kind of one directional short term bull market is prone to a quick sharp correction.

Reading the Tea Leaves – We are nearing the end of the quarter and a major decision on changing to a less transparent (revising mark to market accounting) accounting system in early April.  Both are short term reasons for the bears to hide.

Mutual and pension fund manager will want to show their clients that they have some winners in their portfolio.  So historically they buy them (winning stocks) at the end of the quarter. These managers are sitting on a lot of cash. So it looks like they have been and will buy till April 1.

 As mentioned before less transparency is good for banks bottom lines – they do not have to show those toxic assets as liabilities. It looks like major changes in mark to market accounting will occur. Some of this is already built into stock prices, but right now we are in a positive trend so up to the meeting stocks should move up.

These two factors should blunt a major sell off of an overbought market that is due for at least some sort of correction.  We could see some wild swings in the next few trading days as the quarter closes on the last day of March – Tuesday.

For Longer Term Outlook see yesterday’s blog.

Long Term Outlook CAUTIOUSLY BEARISH

See Changes in STRATEGY, POSITIONS, & OVERVIEW sections of blog 

AS ALWAYS DO YOUR OWN RESEARCH BEFORE INVESTING

 


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March 18, 2009

Market Updates – Stand By Me

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

 Stand by Me - There’s been a lot of bad economic news out there and  few bright spots.  So today  take a look at this you tube video that’s been viewed by almost 8 million people around the world since early last November. It expresses the same sentiment that the CEO and workers in a Boston hospital did when confronted by job cuts.( Thanks to Stewart E. for comments) Here’s today’s good, bad and ugly.


Iraqi Women

Kudos to Hillary Clinton

Dawn (Pakistan news outlet) and other worldwide outlets are giving Hillary Clinton lots of credit in defussing the tensions over the “Long March” and the reinstatement of the Supreme Court in Pakistan.

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Mission Accomplished.

If there is anyone who believes, like Cheney/Bush the Mission was accomplished in Iraq read Juan Cole’s editorial. He doesn’t even include the $3 trillion dollar cost and the loss/critical injuries of American lives. Above photo on how women are now treated in Iraq from Juan Cole.

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AIG AIG AIG

Lots of you have sent me personal emails over housing solutions and the growing anger over AIG. Several of you sent in the Sand By Me Video Two new bloggers  have sent in comments to the blog that deserve recognition. “We’re all in this together.”

Bob R – offers a outlet to express your anger over AIG by signing onto a petition. Link here

Scott H - offers an excellent editorial by Dean Baker on why politicians should be far more concerned over the staggering sums of $ that go into the bailouts.  He also has some eye opening stats on AIG.

I’ll try to get some of the comments many of you have sent in privately published ASAP.

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The Coverup

The Good, the Bad, and the Ugly on Mark to Market Accounting.

Undoubtedly, removing  Mark to Market Accounting will juice the financial sector and consequently the stock market. Just the fact that Dems. and Reps. in a congressional hearing called for changes has sent all the banks that traded in toxic assets soaring. Citgroup alone is up almost 100% in a week. Hopefully, more loans will now get made.  Obama and his economic crew are getting pats on the back as stocks soar.

What removing mark to market does is remove transparency. AIG will no longer have to account for major losses and hopefully when housing stabilizes the assets will be more valuable. The real question is will the crooks, who should be in jail, use this lack of transparency to continue over leveraging and making huge profits/bonuses?  

In China they took out the CEO and COO of a milk company who sold tainted milk and shot them. In the USA the crooks are rewarded by bailouts, bonuses and now a coverup.  The good banks who played by the rules will now be lumped together with the bad banks. Isn’t it the lack of transparency that got us in this mess in the first place?

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AS ALWAYS DO YOUR OWN RESEARCH BEFORE INVESTING

 

Stocks

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Index Percentage % Volume
Dow +2.48% down
NASDQ +4.14% down
S&P500 +3.12% down
Russell2000 +4.46% -

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Technicals & Fundamentals

XLF (ETF) the beaten up financial sector continues to lead this rally – up over 30% last week. Up 6.5% yesterday. 

Big rally with little volume. Volume, the #1 confirmation factor did not confirm the rally. 

Critical to all this in that major major 741 support level on the S&P 500. S&P 500 now at 778 We have gone well above this “mother of all resistance/support levels.”

Fed meets today.

Reading the Tea Leaves - Allowing for less transparent accounting is fundamentally going to help those corrupt banks and ripple positively through out  the markets. As mentioned before we’ve recently had +20 and +28% rallies and the current bear market rally has reached +14%.  Technically its important that we are again above the 2003 lows.  

Bottom Line – Ride the wave – Technically, there are no major resistance levels till the SPX hits its 50 day moving average at 806. Short term momentum with the bulls.  

Long Term Outlook will be upgraded to CAUTIOUSLY BEARISH if we continue to trade above 741.

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Long Term Outlook BEARS RULE

See Changes in STRATEGY, POSITIONS, & OVERVIEW sections of blog 

AS ALWAYS DO YOUR OWN RESEARCH BEFORE INVESTING!

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