Photo of stabbed NYC Muslim Cabbie.

Mother of All Traffic Jams

Just How fast is China growing? Just how much does China need more infrastructure? – Now a nine day 60 mile long traffic jam outside the capital - Video

US Islamophobia Grows

Allegedly drunk NYC guy cuts throat of cabbie after he responded yes to question –  Are you a Muslim? He’s being charged with hate crime Story

Pop Quiz

I’ll buy dinner to anyone over 40 who gets this right and hasn’t seen the list. It says a lot about where our country is headed. Here’s a  List of the top 50 social media sites on the web. Can you guess who/what is #1? Nasty Hint Obama is #3

Bruce Lee Plays Ping Pong

Phenomenal add run on China TV by Nokia. You’re not going to believe this (Thanks to AG for the find) It takes @ 15 seconds till the OMG part.- VIDEO

Housing & Wealth Creation

Fabulous article by James Kwak at Baselne Senerio. Own a Home or thinking of buying one? You must check out the article and graph

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.

The Symphony

Because the High Frequency Traders (HFT’s) use their Black Box algorithms to trade across markets there is a  phenomenally higher degree of correlation between stocks, currencies, commodities (especially oil) and other markets. One inverse correlation has become very crucial in this symphony. That’s the inverse relationship between the dollar and US markets. This is why the US dollar is one of the Indexes followed by Investors411.

Yesterday’s Stock Markets

Even the market cheerleaders on the main financial channel CNBC seem to be growling bears about US & therefore world stocks.

A typical rally day in deceased volume. Because of the BB/HFT’s volume is no longer the #1 forecast tool of major indexes.

We again had absolutely horrible housing news that was worse than expected, yet oversold markets rallied.  How markets react to news is a good indicator of the near term future. For now really bad news is built into stock prices.

Today we will have another bad weekly unemployment report. Since we’re still close to oversold on the MO it will probably take some really bad figures to toast stocks.

Significant Indexes

• The Dollar (USD)  [Anything daily price move over +/- 0.50 is significant. Dollar moves inversely to stocks] The dollar was flat (up a smidge) for third day in a row, +0.14% yesterday.  Two week rally in place. Now facing resistance at 50DMA. Three flat days in a row could signal a reversal of trend & the dollar start to drop. But until this happens, for stocks outlook = Bearish
• The Baltic Dry Index (BDI) [measures cost of world trade. Also proxy for China & emerging markets] Fell -3.08% yesterday. First fall in a 5+ week long rally. Long rallies are typical in the BDI. This could be a reversal of trend and bad for emerging markets. If BDI fall increases today the outlook will change to bearish = Neutral
• McClellan Index – (MO) [The rough guideline is over +60 = overbought market = sell positions or short stocks, & -60 = oversold market = buy stocks.] MO rose  to -48.98 Slipped out of, but is still close to oversold territory = Neutral

Reading Tea Leaves

The massive currency/Dollar market is still key to stocks. Fundamentally, parts of Europe are so bad off its hard to see the dollar not rise in relation to the Euro and therefore probably move higher in relationship to all currencies. UUP the dollar ETF is still what to watch.  It goes one way and stocks will go the other.

Yesterday was probably NOT the near term low for US equities. But remember rallies start from oversold bounces. The last oversold bounce saw a 3 day rally, the two before that 3 week rallies. Of course, everything could get shattered if the dollar soars or we have a really really bad weekly employment number.

Positions

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

Current positions - Small positions in EWS (Singapore) USO (commodity-Oil) & slightly larger in TYH

Traders – Bought TYH at 24.68 & sold 1/2 for +3% gain at 25.50 (10% of portfolio position now 5%) Stop set at 24.43 and will move it higher in a rally. Reasoning behind trade – MO oversold. Big dip at open & double bottom formed. The dollar was flat so I pulled the trigger.

Investors – Any time the MO closes below (if you willing to take more risk – close to) -60 and the markets dip further is a chance to purchase one of the long emerging market of energy rich country ETF’s. See List in Positions. It’s safer to do this if the MO is below -80 and still safer if it goes beyond -100

Long Term Outlook - NEUTRAL

AS ALWAYS, DO YOUR OWN RESEARCH BEFORE INVESTING!

New Mexico

Move YOUR Money

The  state of New Mexico’s house voted 65 to 0 to move their money ($2 to 5 billion) from the big shadow banks to the local community banks. So why can’t YOU Write your state legislatures. Tell them what New Mexico did.  Tell them what YOU did. You can make a difference.

Elizabeth Warren Calls Out Wall Street

part 2

Great follow up by James Kwak editorial on how the Big Shadow banks will try to block Warren and reform. Obviously the entire Federal government failed to stop the Shadow banks bring this country to its knees.  All the TEA party people, Rush Limbaugh, Glenn Beck will rise up to  scream oppose to any attempt by the Feds to better protect the common working man and woman – They will call it socialism, big government, and stifling the markets.

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!

Investors411 record – 5 years of beating benchmark S&P 500 and almost all major US indexes

Technicals, Fundamentals & Analysis

See Positions , Strategy , and Overview for changes made over weekend.

Technically, Volume. out #1 confirmation factor, seems to be turning in favor of the bulls.  For the last few days rallies instead of price declines seem to begetting the bulk of the volume.  While its too early to claim victory on this price roller coaster a bullish trend is developing. Perhaps the single biggest basis for this potential bullish trend are US equities are oversold (see below)

Fundamentally -Looks like rally may be starting and European countries are going to protect potential defaulting countries. Short term positive – long term negative. Here’s the question – Will Greek workers be happy with austerity demanded by German banks? Is Greece like the Countrywide Bank (first of the big USA banks to fail) of the USA?

US trade deficits just got bigger -$40.2 billion – for last month. A bigger than expected number probably due to strengthening dollar. Bearish stat

Significant indexes – Forecasting tools for market direction

• McClellan Index fell to -37.14 =Approaching Oversold. We’ve passed -60 or oversold levels twice. When the  McClellan Oscillator gets past those levels its a signal to buy.  The more we are over -60 the better at least a short term buy will come out successful. -37.34 is a better entry point than +37,34, but not as good as -60 and beyond.

Positions

The  Positions Section (also at top of blog) has the latest buys and sells – Revised positions over weekend) – These are positions I actually own

SELLING & BUYING

These are YOUR selections

Stock Watch List

NB – I feel much more confident with ETF’s because they reflect global trends than individual stock. Too many things can go wrong with individual stocks. Click on ticker symbol for chart

Caution – You have to be careful that the dip does NOT break trough a major support level. Then the dip becomes toast

• SEED – A China related stock. Broke down through support levels and created lower low. Trend broken. removing from list
  
• AAPL - Formed a double bottom trading pattern @ 190 - a buy the dip opportunity
  
• CAAS – Broke down though 50 day, but has some STRONG volume up days. A China play that will follow FXI. Tempting
  
• PCLN – Fell below 50 day moving average. Formed a double bottom bullish trading pattern. A buy the dip opportunity
  
• F – Oversold, and well down from highs. Has formed a base at 10.5  - a buy the dip opportunity
  
• DRWI - Big exporter to China -  Sitting on 50 day MA support level  No big volume as stock dropped= good sign. Buy the dip .
  
• ENOC – New – Reduces costs for utilities 50 day MA acting as support Potential buy the dip
• IMAX – Great long term chart – Poor short term chart. Lower highs and lower lows  Investors411 has a 2% of portfolio position in this stock. Sell at least 1/2 into next rally

YOUR new Stocks (sorry several of you sent multiple lists and I picked what looked best)

• GS, Often considered the #1 Shadow bank seems to have formed base at @ 150 Tempting.
• CSCO, Techs new leader Moving up despite rocky market a by the dip
  
• SHOO, Great long term chart. Pulled back and is forming a base. Would like to see a bigger base, but tempting
  
• ICON, Did NOT form lower low over last two weeks as markets toasted a buy the dip
  
• VPRT Another stock that weathered recent pullback well a buy the dip
• DGIT Thinly traded, but potential winner – just broke above its 50 day MA a buy the Dip
• CTCT Rebounding stock, has a of good volume up days has breakout potential
• VCI Good volume, good chart Somewhat overextended A buy the dip underway
  

Bottom Line – We are oversold and ready for at least a short term run – Investors 411 opened a 5% position in TYH (3x financials) Friday at 117.14  TYH now at 123.56 Sold 50% at 124.85 on Friday for +6% gain.

Big Mistake here was not to commit more $ TYH to trade.

I’d much rather buy while the McClellan Oscillator is -37 than +37. But, the lower the McClellan goes the better the buying opportunity.

Lots of the above stocks have technical potential IF there is a rally

Long Term Outlook = NEUTRAL

AS ALWAYS DO YOUR OWN RESEARCH BEFORE INVESTING