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Et Tu Barack

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Pac Man

This week Obama confirmed he’s part of the Oligarchy that is tearing American democracy apart and transferring trillions of dollars of wealth from the vast majority of Americans into a kleptocratic American aristocracy.

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Obama Endorsed

Super PACs This Weeks

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Some of the best editorial

• Elections Are For Suckers
• Obama Joins The Democracy Sell Off
• The Sad Spectacle of Obama’s Super PAC
• Obama Yields In Marshaling of Super PACs (NYT)

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There are a few rays of  democracy/sunshine

left in America’s political system

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Elizabeth Warren (D) and Scott Brown (R) in Massachusetts have agreed NOT to allow Super PAC money in their campaigns.

Warren and Brown’s Pledge May Not Hold up, but

Lots  of us will keep up its fight for Democracy.

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STOCKS

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• Market Fundamentals driving stocks have NOT changed in any dramatic way. Of course, they can in the future.

• A “healthy” 2 to 5% technical correction seems like it could happen.  Paul pointed yesterday to AAPL  (overextended/climax selling) as a probable cause for a technical correction.

• Right now I view this as a buying opportunity.

• Still CAUTIOUSLY BULLISH

Barr

Paul’s Corner

Hit the top?

I learned from my good friend Ian Woodward (HGSI) a long time ago to let the market tell you which way the market is going rather than  guessing. Each evening I take a quick look at the market to see if we have any signals as to which way the market is heading.  After the close yesterday, HGSI gave us the first update of the evening about 5:30 ET and within a minute or two I knew where the market went and the possible direction it is going. Here are a few of the notes I scribbled down on my note pad.

VIX up 2.6% today, Russell small caps off while Naz 100 up, Consumer Staples top of the list today, looks like flight to quality. MO on the S&P 1500 fell to near zero. No major damage to YSL. Stay away from SIMO! All HGSI Indicators for SIMO are red!

So it appears the money is heading for security. Pre market futures are down and the rest of the world has been trading off over night. The last few days the markets have struggled to finish positive and many high flying stocks closed off with profit takers emptying the till near the close. So will we trade down or up today? Um ask Barr I don’t know, but I will be ready to protect my profits. Buying new long positions at the time takes some real guts which I don’t have!

As I have mentioned several times, HGSI and EdgeRater are giving a great video class series on using the two products for superb market analysis.

Ian Woodward gave an excellent 45 minute presentation this week on how he analyzes which way the market is going by following %B and his new proprietary “Woody” indicator. This video is classic Ian and he gives you the whole basket of what to look for in the market and how. A long time market guru, one of the sharpest folks I know and a great teacher, here is the link to his video:

IAN WOODWARD VIDEO

This video class series is still going on and available for you to participate. While taking the classes you get free use of HGSI and EdgeRater software.  If you are serious about developing your investing skills, this is one class you need to take, and for crying out loud, IT’S FREE!

HGSI Course Register:

My favorite high demand stock search produced the following results for Thursday Feb. 09,

HIGH DEMAND  LINK

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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Zach Wahls

Why has this 19 year old scholar’s 3 minute video been seen by 15,540,308 million people?

Zach Wahls Speaks About Family

The Video

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Occupy Wall Street

Note – Cartoon from outside USA

Some signs OWS’s Message about

Income Inequality is resonating

• Obama now talks the talk.  Many question if he will walk the walk (see yesterday’s Investors411 & comment section)

• NY governor with 65% approval rating, Andrew Cuomo, gets NY legislature to approve additional taxes for the wealthy while cutting them for middle class Americans - Story Link

• It’s way early, but consumer advocate Elizabeth Warren has taken a lead in polling for the MA Senate race over Scott Brown, even though Carl Rove’s group is airing negative adds tying her to OWS.

Compilation from Huffington Post

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STOCKS

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Here’s a list of 130 stories raging from next weeks Fed meetings to the disputed “secret loans”

Strong correlation between Europe and US stock opening price

You’re happy to be in cash if you’re an Investor411 reader and waiting to deploy that cash when the opportunity arises. We’re starting to get close, but how bad will the bears bite?

Fat Cat Shadow Banks Kick Ass

You’d think congress would be all for a tax on the biggest shadow banks, but Republican’s (perhaps led by my Senator Scott Brown) objected. The $19 billion dollar tax on shadows and hedge funds got taken out of Fin/Reg bill. Now who pays if one of these giants goes down? YOU

KISS & Stocks (Keep It Simple Stupid)

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

AS ALWAYS, DO YOUR OWN RESEARCH BEFORE INVESTING!

Index	Percentage	Volume
Dow	-0.98%	up
NASDQ	-0.21%	up
S&P 500	-1.01%	up
Russell 2000	-1.05%	-

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

Technicals, Fundamentals & Analysis

Mantra for week - ” Any analysis of stocks has become an analysis of what the ”Black Boxes” of  huge institutions with their high frequency trades & computer algorithms are doing.” They make up 80% of trading and right now the huge currency markets are dictating their moves.

The last major support level gave way on the benchmark S&P 500 around 3:00 PM EST Only the Russell 2000 (small cap stocks) remains above this years low. = Bearish

Analysis – Double Dip Recession Fear Grows

• EU & GB (Obama was NOT on board with this) want to raise taxes and cut spending – This is exactly what Herbert Hover did to cut the deficit and led to the Great Depression. Combined EU alone has bigger GDP than USA so this is significant.
• BDI falling off a cliff. Now a -42% decline in world trade prices also indicates the worlds engine of growth emerging markets (China & India lead the pack) in decline. This translates into falling GDP’s for emerging markets. Jim Cramer dismissed this index on his TV show last nigh – He’s wrong.
• USA fixation on cutting deficits (tea party patriots) and not fixing transparency and over leveraging problems. We are not out of the recession woods our focus should still be jobs, jobs, jobs.

Paul R in comments section has a list of  some support levels of the benchmark S&P 500.

Significant Indexes

• McClellan Oscillator (MO) fell to -50.77 [+60 or above = Overbought = sell. -60 or below = Oversold = buy]. StockCharts has a better version of the McClellan chart ($NYMO) LINK. –  & Investopedia on –  How the MO works. In May the MO reached two lows – one at -120 and the other close to -130. Therefore, potential for more downside risk. = Still NEUTRAL, but approaching oversold
• US Dollar –  The dollar fell a marginal yesterday -0.12% [Anything over +/- @0.50 is significant.] Mantra - right now The Dollar Rules is very important Dollar up = stocks down and visa versa. Both stocks and dollar going down together = Bearish
• BDI - The  Baltic Dry Index (Measures cost of shipping – Higher costs good = more being shipped = Bullish. Also good proxy of China) BDI is in free fall from a high@4200 to  24o6 yesterday.(2447 to 2406 yesterday) This is a huge -42% drop in 6 weeks.  Often a leading indicator for stocks. Here’s a week+ old chart of BDI showing broken support levels =Bearish

Positions

The  Positions Section = latest buys and sells  - These are positions I actually own – Updated over weekends

Have not yet had a chance to Update over last 2 weekend but there are NO positions held at this time.

Hold your “I wanna invest” horses. The MO is not even at - 60 yet. Just because we are all in cash (some of you still have SDS (Double short the S&P 500) lets not jump in head first when we cross the -60 oversold threshold. Reasons

• Technically – the MO reached over -120 in May
• Never make all or nothing investments enter them gradually.
• The BDI did hesitate a bit but is still in free fall -42%
• S&P is now down @-15% from high and when that happens -20% becomes more likely than not.

These red flags exist. But below -60 is a place to start nibbling on those ETF’s/Stocks that have held up better than their peers. The lower the MO goes the better. Today some ETF’s that are doing better that US markets.

• EWZ (Brazil) still about 10% from this years low.
• EWC (Canada) Like Brazil energy rich and above this years low.
• EWA (Australia) Common theme with above – higher beta, energy rich, above this year’s low.
• EWS (Singapore) Trade hub, China play – rallied yesterday despite US decline.
• FXI (China) Old favorite like EWZ has made us $$$ in the past.
• There are sectors within the USA that are holding up better than major indexes like Health Care Products, Paper, Drugs, Airlines etc. But their outperformance level is not as great as some foreign countries right now.
• GLD &  DGP (2X gold) continues to be the #1 buy the dip play – Irrelevant of MO.

Another 100 point drop in the Dow should bring us close to -6o on the MO and the least risk averse could nibble a wee bit. I’ll wait for a bit bigger fall.

Caution – Major US and most world indexes have formed bearish patterns of lower highs and lower lows. Therefore, chances are that when Investors ‘s411 buys we will only hold for a week or two. You can hope for more.

Long Term Outlook =CAUTIOUSLY BEARISH

AS ALWAYS DO YOUR OWN RESEARCH BEFORE INVESTING