Investors 411 Blog

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Occupy Wall Street

It took 9 days before NPR first mentioned them, and 12 days before CNN dared defy Wall Street and mention the growing “Occupy Wall Street movement.” The Sunday NYT lead editorial was on the protestors message.

“The message — and the solutions — should be obvious to anyone who has been paying attention since the economy went into a recession that continues to sock the middle class while the rich have recovered and prospered.”

More editorials from Common Dreams - Carolyn Eisenberg , Robert Reiche ,& Bernie Sanders

But youhave to love this title/editorial Paul Krugman’s

Panic of the Plutocrats

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Investors411 record – 4 1/2 years of beating benchmark S&P 500

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Financing Health Care

Here’s the "Pelosi" or House Plan costs It has a direct impact on 1.2% of Americans.

• 1% increase on those earning over 280K to 500k
• 1.5% increase on those earning 500k to 1 million
• 5.4% increase on those earnings over 1 million.

The nuts and bolts (lower costs & greater choices) of the plan explained here

Bottom Line – The growing income inequality is one of the major economic problems that has done  seriously harm to this nation.  No matter what you feel about this imperfect plan the Republicans had 8 years and did nothing while health care prices skyrocketed. The Democrats and Obama are moving in the right direction.

Knowing that heath care costs are covered, 10′s of millions of Americans will be more likely to spend money.

Sotomayor Hearings

The Supreme court has become a highly charged political entity. The 5-4 vote for President Bush in 2000 proved this beyond any doubt.

So naturally the Sotomayor hearings are a circus of political correctness. The OWMP (Old White Men’s Party) or Republican’s are further alienating themselves from America’s growing non white community by going  after an eminently qualified Hispanic women jurist. In the NYT Maureen Dowd has a column appropriately  entitled "White Man’s Last Stand" here

Waiting Game

Huffington Post photo

The NYT has an editorial that reflects similar views of Investors411 over these past month. Why is the Obama administration waiting to act on some critical economic factors? See editorial here

STOCKS

AS ALWAYS, DO YOUR OWN RESEARCH BEFORE INVESTING!

Investors411 record – 4 1/2 years of beating benchmark S&P 500

(see results for last 1/2 year – click  6/25 & scroll down)

Technicals and Fundamentals

• Brown = repeat statements
• Green = usually bullish statements
• Red = Usually bearish statements

Markets moved slightly higher after Monday’s big gains in reduced volume. A Bullish confirmation signal

Financials are probably going to continue their charmed existence, because t he Obama administration & the Fed has deemed the big ones too big to fail and they keep kicking the can down the road on any major fix of the problems that created the economic meltdown.

Intel’s earnings report  was a grand slam . Intel is the mother of all chip stocks and chips are the picks and shovels of technology. Therefore, this is a fundamental sign that technology is full of "green shoots," (green shoots is an overused term that of signs the recession is receding) At least technology is one sector of the worldwide economy moving forward.

Significant forecasting tools/Indexes for stock markets

BDI - The Baltic Dry Index measures the flow of goods (world trade) As predicted for the last two days the BDI has turned back and yesterday mover significantly (3+%)  higher. So the prediction on Monday about a bullish turn has come true.  Bulls Rule momentum

In a nut shell the BDI is

• short term - turning bullish
  
• mid term – clear bearish pattern
• long term - bullish pattern
  

$USD - The Dollar is still comfortably in its in its 5+ week long consolidation pattern between $79+ and 81+.

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Monday’s Fearless Forecast for week – So expect a rise with some financial stocks reporting early in the week and that rally to get tempered later in the week Intel surprise is a strong fundamentally Bullish factor

Changing Long Term Outlook back to NEUTRAL – Both the BDI (world trade) and technology are green shoots

Our Positions

Intel earnings positively impact four positions

• IFN – India We outsource much of our technology to India.
• QLD – This in its own right (not part of the "the Hedge" trade) becomes a buy the dip trading opportunity again
• FXI – Benefits less directly. But anything that helps the US helps China more.
• The Hedge – This should certainly help the QLD or tech part of this trade.

Personally I’m adding to positions early this AM and/or on any dips. (5% to 10%) addition.

This doesn’t mean that the worldwide recession is out of the woods – there are some long term problems that are no where near solved – but Intel’s news and the BDI turn should really  juice stocks.  The benchmark S&P 500 is at 905 and the next resistance level is 930 then the yearly high of 956. Rally ho

Note change in Long Term Outlook up ANOTHER level to CAUTIOUSLY BULLISH

AS ALWAYS DO YOUR OWN RESEARCH BEFORE INVESTING!