Heroes

Inside Job -  The Charles Ferguson (above) Docudrama lists all the major players from an IMF President & French Finance minister to the insiders who got fired that stood up stood up to Paulson, Greenspan, Bernanke, Summers, Geithner & the shadow banks etc. and told them of the coming economic catastrophe.

What Can YOU Do? - You can Link to The Official Facebook page. It has some great ideas

Russ Feingold – Obama should give Feingold the #1 economic position in his administration. Below is a copy of the letter he sent to his supporters –

Thank you. Thank you for your support over the years.  Representing Wisconsin in the Senate has been the greatest honor of my life and together we accomplished many great things. No one has ever had such a strong foundation of support as I have.  You gave me my backbone.

In the words of Bob Dylan:  “But my heart is not weary.  It’s light and free.  I’ve got nothing but affection for those who have sailed with me.”

Forward!

Russ, Thank you.

Ted Kaufman – Mr Smith Goes to Washington (Joe Klein) Maryland’s appointed Senator who did more to take on Wall Street insiders than anyone else in the Senate along with Russ Feingold. A quote from this article is what I’ve always taught my kids and what this blog is all about.

When I mentioned that many people thought that work was doomed to failure, since the wizards will always find their way around the rules, Kaufman exploded, “Baloney!” Only he didn’t say that. “That is the stupidest argument. It’s like saying you don’t put cops in the toughest neighborhoods because there’s always going to be crime there. We need cops on the street, on Wall Street. Good cops, like the ones in the current Justice Department, Securities and Exchange Commission and FBI. Our problem was that the cops weren’t doing their job. They’d stopped regulating — not just on Wall Street but also food and drugs and in the mining and drilling sector. Look what happened in the Gulf.”

Elizabeth Warren – She’s been featured in Investors411 more than anyone else except the President. The later is obviously NOT on this list. The following lecture on the The Coming Collapse of the Middle Class at prestigious Jefferson Memorial Lecture Series is outstanding. Over 427,000 have seen this interview.  More fun – Warren on Jon Stewart.

If any of you has someone else who stands up to Wall Street and can explain why. I’d be happy to post.

—

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

Index	Percentage	Volume
Dow	+1.96%	up
NASDQ	+1.46%	up
S&P	+1.93%	up
Russell 2000	+2.56%	-

Technicals, Fundamentals & Analysis

Investors411 record – 5 years of beating benchmark S&P 500

US Stock Markets -

Dollar broke its support level two days ago &took a significant hit yesterday. This confirmed the breakdown through support. So stocks rallied yesterday.

Volume was higher and above average, but not the massive volume you’d usually associate with a rally of this magnitude. Let’s go back to or remember an old mantra – The Black Box/High Frequency Traders control 50 to 80% of the US stock market. This is their rally and its based on the downward plunge of the dollar.(see below)

The BB/HFT are now going to get some resistance from what’s left of regular traders/investors (the other 20 to 50% of traders) and they are worried.

• Insider selling is at all time high.
• S&P is at major resistance – this years high.
• Many Oscillators and Indexes are showing overbought US markets
• Our own MO while not in overbought territory yet is the highest in over a month.

US stocks used to be controlled by normal investors and traders – If it still was I’d be ducking, covering & selling big time. But its not. See Bottom Line below.

JS in comments section posts an interesting editorial on emerging markets fighting back against the Fed pumping and dumping truck loads of $$$ into our economy. This will be a concern in future and may lead to a currency war. But

• Mostly all bark and no bite right now from emerging markets
• China’s currency is pegged to dollar, so they are irrelevant in this.
• Europe, a slightly bigger economic entity than USA has even less bark.
• USA rules, in part because oil prices are tied to dollar and we are still (getting smaller each day but) the Big Kahuna

Employment numbers for last month just in +156,000 jobs rate even at 9.6% More here

Again the Mantra for the last week - “Not making any specific move until dollar breaks out of its range. I would look at a breakout higher for the dollar, and a corresponding fall in stocks and the MO to oversold as a buying opportunity for long term investors. “Looks like Wednesday Fed meeting is the big event.”

The MO was near zero and we had the Fed announce a large pump and dump of Quantitative Easing ($600 billion in QE2) so as forecasted many new relevant ETF’s were added. – EEM TYH DGP. These were all bought as the dollar broke down through support after the Fed announcement.

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

Announcements of purchases/selling can first be seen in the comments section of the blog and/or if you are on the private mail list. If you’d like to get on mail list send me an email – see HELP/EDITOR section of blog

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Bravo Barack

Obama finally hit one out of the park yesterday. Let’s not damn him with faint praise  like America’s media or try to politically toast him for everything he does like the far right, but this time say Amazing, Well Done and Bravo Barak.

• Obama got a $20 billion dollar Trust fund from BP for folks impacted by the BP volcano of oil.
• Obama got BP to suspend their dividend for a year — the money goes to those impacted not shareholders.
• Obama got a NO cap agreement on the $20 billion
• This is especially significant because just a few weeks ago congress could NOT pass a plan for a $10 billion dollar fund. Something many congress people should be ashamed of.
• Obama got BP to pay $100 million for idled workers.
• Obama got, Kenneth Feinburg (oversaw 911 victims) to head independent agency to administer claims

Has an American President ever got $20 Billion from one of the biggest companies in the world? NEVER – This should be the headline of every major paper in the USA – but it isn’t. It is the lead editorial in NYT.

Black Boxes (see below)

NB –  Last Investors411 for week

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

Markets were mixed in surprisingly light volume – This Friday is one of those days all kinds of options expire. Translation there should be a lot of trading.

FXE – The ETF that tracks the EURO fell -0.36% in very heavy trading. The amount of decline is not very significant, but the heavy trading is. Perhaps a reversal of the week+ long EURO rally is happening.

“Black” Boxes

Jim Cramer, host of Financial Channels “Mad Money show, last night called them “Black Boxes” I’ve called them the “Mega Sharks” and “HUGE institutions/hedge funds” that dominate trading. Cramer stated that 4 years ago they made up 30% of the trading, now these entities with their giant computers make up 80% of the trades on the US stock exchanges.

These Black Box traders are another form of casino capitalism-in other words – they rig the game so that YOU loose and they win. Some examples

• High Frequency trading – Their ultra fast trades caused the major 800 point Dow meltdown in stocks a few weeks back. Now 10% curbs have been put in, but both Debolt and the Washington Post stocks were hit with 10% dips this week. Translation – their high speed computers that run on algorithms are in and out of a stock/sector/country’s currency before  you even begin to type in your trade.
• Imagine you are trading SNDK. A stock that has and is doing very well right now. Black Box computers can instantly pick up any news on the company from media outlets to probably the amount of facebook, google or twitter traffic on SNDK and the team monitoring those black boxes can act accordingly.
• They can manipulate to a significant degree a stock, sector, ETF that is close to an important technical level. One way is pumping and dumping. They pump something up, other suckers join in, then they dump it.

They rule and they run the rule book. In other words what used to work like volume confirming a price move seems no longer to apply.  The game has changed and the 20% of us that are not Black Box traders are their easiest targets. Sometimes they go up against each other and sometime they work together. In the long run fundamentals (earnings, company growth, profits, etc.) do move markets. However the Black Box traders that dominate markets can do a lot of damage/manipulation before fundamentals kick in.

Right now the Black Boxes are obsessed with the Dollar/Euro relationship. That’s where the money and the action is – the giant currency markets.

It was surprising to see Cramer, who is basically a market cheerleader, speak out against Black Box trading. He recommened supporting one of the champions of Investors411 – Senator Ted Kaufman. Here’s Kaufman on casino capitalism and black box trading

Bottom Line – Many people no longer invest in stocks. This is evident from the lack of volume. Black Box trading is one of the factors in out casino capitalist system that rewards the few at the top and the rest of socialize their risk.

About the best I can do is follow the tracks of the black boxes and make trades accordingly. Right now their obsessed with currency trading. Until casino capitalism is repaired investing for the long term (years) is more difficult.

Significant Indexes

• McClellan Oscillator fell to +60.11 [+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. Just into Oversold territory = Bearish
• US Dollar –  The dollar rose +0.30% [Anything over +/- @0.50 is significant.] Mantra - right now The Dollar Rules is very important.

Reading The Tea Leaves -

The high volume turn around in the FXE (see above) & the oversold condition of stocks (MO) indicates the likelihood of a short term reversal of trend in the EURO. However, major reversals usually happen at support levels and the dollar & the EURO are still a ways away from its 50 day moving average. And one day’s trading in currencies is ardly an indication of a reversal, only the possibility of one. So lets go with moderate upside that gets us back to @+80 on the MO.

Positions

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

Out of all stock positions.

Out for the rest of the week – Back Monday

Long Term Outlook = NEUTRAL

AS ALWAYS DO YOUR OWN RESEARCH BEFORE INVESTING

Senator Ted Kaufman -” The Most Important Person You’ve Never Heard Of.” - ABC

Investors411 readers have heard this name many times.

Too Big To Fail

Moody’s, has come out with a report that Congress has NOT solved the Too Big To Fail Shadow Bank Problem. A team led by Moody’s (one of 3 major credit rating agencies in USA) big wig Robert Young concludes:

“[A] key issue that challenges the feasibility of the proposed legislation is that it would not fully eliminate the issue of interconnectedness, nor is it likely that resolution authority could fully eliminate the systemic implications of allowing a large and/or highly interconnected firm to default, especially with respect to large international groups, and it certainly would not eliminate the risk of contagion,”

Shahien Nasiripor writing in the Huffington Post point out some obvious and alarming statistics. The 4 major shadow banks alone are growing and now control $7.7+ trillion dollars of money. [$7,700,000,000,000] Relativity = Lehman Brothers who collapsed in 2008 controlled $400+ billion. Therefore, each of these major  banks is @ 5+ times large than Lehman’s.

Now think, of the people/ businesses who have their savings in each of these major over leveraged shadow banks. If one goes down, like Lehman panic will certainly spread to others. Bada Bing, Bada Bang, Bada BOOM!

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

Mantra – Volume has not worked as confirmation factor for many many moons. = Neutral

Lack of volume shows hedge funds and giant institutions with their high speed computers are the dominating the US stock markets. Most average investors have long since got out.

As predicted, (it was no surprise) yesterday markets held onto the significant gains of the day before. = Bullish

A major French bank got toasted this AM because of  derivatives. Emphasis on the word French = Bearish

All eyes on monthly jobs report - Its safe to say this number is massaged or manipulated to a degree by whatever administration is in power. Comparing the USA’s unemployment rate with other countries is like comparing apples and oranges because of the different ways each country compute/massages its unemployment number.

The Employment Report- 8:30 EST  - +431,000 jobs, Employment number down to -9.7%, Private sector jobs only +20,000. Most jobs created by census. = WEAK Report – Worse than expected.

Significant Indexes

• McClellan Oscillator rose to +9.43 [+60 or above = Overbought = sell. -60 or below = Oversold = buy]. StockCharts has a better version of the McClellan chart ($NYMO)LINK. -  This is first time the MO has turned green (entered positive territory) in over a month. Momentum is up, but bottom line – this is NEUTRAL territory -   How the MO works.
• US Dollar –  The dollar rose a significant +0.52% [Anything over +/- @0.50 is significant.] Mantra - right now The Dollar Rules is very important. Currency markets are now being directly manipulated by out Fed and other central banks. This manipulation is to keep the Euro from falling. Dollar  at $87.25 Chart shows at least 6 attempted breakouts above @87.5 have failed in last 2  1/2 weeks. = Bullish.

Reading the Tea Leaves - – Stocks are focused on the jobs report.  Since stocks have rallied into the into todays jobs report, it would be logical for the Central Banks to allow the dollar to rise to a new high with a decent jobs report. Momentum is up for the MO and this currently translate to a short term positive for stocks.

Since Obama administration (leaked?) and Wall Street have built into the recent rally a much better than expected jobs report expect the following.

• Worse than expected numbers – Stocks take big initial hit, but US employment is not really a major factor in shorter term US stock prices – Hedge funds and giant institutions are far more worries about the monsters mentioned yesterday.
• Better than expected numbers – Would have to be blowout numbers. Really good numbers already built into stock prices. A blowout number will send the dollar and stocks soaring. Sometime during the day major players will realize that a soaring dollar will hurt stocks (even central bank intervention can’t stop a massive run) and this will temper gains.
• Obviously, better than expected numbers is good for the long term economic well being of the USA.

Positions

The  Positions Section = latest buys and sells  - These are positions I actually own

Have NOT had a chance to update this/last weeks trade. You can find results in individual post over last two weeks

Consider ETF’s that short the markets.

Long Term Outlook = CAUTIOUSLY BEARISH

AS ALWAYS DO YOUR OWN RESEARCH BEFORE INVESTING

Trust Buster president Teddy Roosevelt – Will Obama show us the same tonight?

Tea Party

“The tea party’s exaggerated importance” is the headline of the  major independent blog editorial blog Politico’s this AM on the “anti Obama rage group” .

Mea Culpa – I do respect the Tea Party because at Investor411 they have won. By focusing attention on their white (in the words of the old Ivory Snow commercial this group is 99 44/100% white)  rage I have taken it away time from facts on the deficit or Health Care.

The NYT’s lead editorial yesterday was on Massachusetts heath care system “which 1/2 of Scott Brown supporters and 2/3 of all Massachusetts residents like.”(paraphrase) according to a poll. 97% of MA residents are covered. For more see “Reform and Massachusetts.”

BRIC

The Economist has a  has an in depth look at the top emerging markets as a real alternative economic force to the European Union & America.  BRIC = Brazil, Russia, India, China whose leaders are or just finished meeting together in Brazil.  “The Trillion Dollar Club”

The Obama Speech

Tonight’s speech on financial reform is a defining moment. Will Obama be the next Teddy Roosevelt ? (A Republican Trust buster) The short answer is NO. Senate Democrat Ted Kaufman (Dem. DE) is our Teddy Roosevelt – Here’s part 2 of his speech on Wall Street and the Rule of Law

One piece of encouraging news is Senator Blanche Lincoln (Dem  AK) committee has a Republican onboard (Grassly- R IA) for her legislation on derivatives. Lincoln has come up with a stronger bill than other proposals.

NYTs headlines Obama Issues Sharp Call for Reforms on Wall Street If this is true you’ll see a 2 to 5% decline in shadow banks tomorrow. It Teddy Roosevelt or Ted Kaufman gave the speech you’ll see a 5 to 10%+ fall in shadow financials tomorrow.

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 for changes made each weekend

Market went nowhere yesterday in increased above average volume. What Wall Street calls “churning.” Usually considered a reversal of trend = Bearish

Yesterday’s grand slam earnings reports by giants APPL & BAC (thank you taxpayer bailout, Fed 0% loans, & elimination of mark to market accounting) did little to move markets higher. US markets have reacted poorly to great news indicates  = Bearish

Seeking Alpha this AM has a big section on the problems  China has. Here’s one article . Investors411 has closed its entire China position (FXI).

Earnings reports continue to pour in.

Significant Indexes

• McClellan Oscillator rose slightly to -4.91 yesterday.  [+60 or above = Overbought = sell. -60 or below = Oversold = buy]. StockCharts has a better version of the McClellan chart ($NYMO) LINK. - This is almost right in the middle of NEUTRAL territory
• US Dollar – rose +0.19% yesterday. [Anything over +/- @0.50 is significant.] Mantra - right now The Dollar Rules Is very important. Remember, dollar down almost always = stocks up and visa versa. The positive earnings reports are overshadowing the dollar which is in the middle of a consolidating range between @$80.00 & @$82.20. Dollar at 81.18. If it moves to either side of that range it will impact stocks.

Positions

The  Positions Section = latest buys and sells – (Revised positions last weekend) - These are positions I actually own

Both Comments from The Critic & Paul R were incorporated in the strategy section of the blog. You can see them by linking here or at any time in the future going to the top of the blog and clicking on the word STRATEGY

Caution – I do on occasion day trade. None of this is part of Investors411. Almost all of you are looking for something to hold for a period of time.

When to Buy? – McClellan Index - Only 8 times in the last year did this index reach below -60 = oversold = a time to buy. Even then tow of those tomes were within a few days of each other. Therefore the total was only 6 times. The last time was back in early February. Its frustrating not to buy or sell, but Investors411 is going to wait till we are oversold to commit major amounts of capital.

UWM – [ETF that does 2x what small cap stocks do] UMW is back in the black and at a new high although only up a couple %. Almost closed this position. Going to sell at or near open today.

IMAX – imax hit a new high yesterday in a “pop and drop” (see yesterday’s Investors411) At one point in time it was up almost +9% and end the day at +2.94%. Volume was @ 3x normal.  Some entity perhaps more than one broke Imax out to a new high. All the day and swing traders jumped in after the break out. There was some China news,but this turned out to be not as big as its headline.  Then the dropping or profit taking came as IMAX fell up to 8%.

IMAX has had  some other pumps and dumps over the last few months. Investors411 called this pump and dump yesterday. This kind of trade is only for day/swing traders (not investors) who know what they are doing and can handle the risk. Not a recommend trade by Investors411 Yes I bought some Imax to day trade early yesterday and made a 5% profit on this.

Paul R on comments section recommends VCI,, that’s held onto its breakout from a consolidation period yesterday. Volume not strong,but it has possibilities for longer term investors

Monitor Likes SHOO – more a short term trade because it is too far extended from 50DMA (Day Moving Average – If you do not recognize what 50DMA was you should NOT be trading these stocks!)

Long Term Outlook = CAUTIOUSLY BULLISH

AS ALWAYS DO YOUR OWN RESEARCH BEFORE INVESTING

Mad Hatter/Johnney Depp frm Alice

Will Technology Save Us?

Using fancy complex technology to do shadow bank financing certainly facilitated a global financial meltdown.  However, having now seen Tim Burton (a gifted director) Alice In Wonderland in IMAX 3d I’ve fallen through the looking glass over advancements in 3 D technology again.  Two new films “Dragons” (saw previews to this and would consider flying to Fargo ND to take my grandkids to this film) and “Titans” are fighting it out with Alice for the limited number of 3D screens. There are 24 more 3D movies on the way this year.

Health Care’s Last, Last Stand

Like in the Terminator movies Arnold just kept coming and coming after you. Sometimes he was the good guy sometimes the bad.  Well, yesterday ultra lefty congressman Dennis Kucinich flip flopped and now may be Obama’s  St Patrick day’s luck charm on health care. For more see Health Cares Last Stand (scroll down)

Damage Control

The Catholic Church brings many people closer to God and has fought for many social justice issues.  However, this whole business about pedophile priests has been a nightmare that they have made worse because they just have little concept of how to do damage control.  Sure these events are horrific but stop trying to cover it up or whitewash everything. More here & here & here Then again basically ignoring is a form of damage control.

Off With Their Heads

Ted Kaufman is now by far the strongest Senator is calling for reform on Wall Street. Bravo. WSJ article & MIT’s Simon Johnson‘s  “Fraud Still at the Heart of Wall Street.” on Kaufman. Perhaps we should do what they did to the head of North Korea’s financial chief -  When he messed up - He got executed.

Baseball = Evil, Football = Good

The reality is sometimes more socialist systems do work better than capitalist systems in generating revenue. Hard to argue in the USA institutionally baseball is in decline while football is rising. Big market teams win, get fans and revenue. Small makets almost always loose, fands leave and so does revenue.  In football they have a strict team salary cap and strict progressive draft system. Their stadiums are almost all full, their championships and media rating are skyrocketing.

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. (No changes this weekend)

Volume was moderate and up a wee bit, as stocks advanced yesterday. Volume is half heartedly confirming a much less than stellar two day rally. This short rally was built on a two week low volume rally. Technically as we again approach oversold levels, volume, the #1 confirmation factor of a price move, is giving us a slightly bullish signal

Since the Oscillator Investors uses is not yet overbought we have some wiggle room for stocks to move higher in the short term.

Technicaly, this its like there is a whole group of soldiers assaulting a barricade (pushing out to even higher highs). These soldiers seem to be moving very slowly for a charge, but progress is progress.  Once we hit oversold territory progress should slow even further.

Fundamentally “stocks could pick up steam today because of weekly jobless claims (better than expected) and “quadruple witching” (don’t worry if you do not know what quadruple witching is but it is fascinating to see all those traders flying around the NY stock exchange on their broom sticks)

Significant Indexes

• McClellan Oscillator rose to +51.86 yesterday. We still under, but getting close to +60 or Overbought territory. The recent high two weeks ago was 75.33 StockCharts has a better version of the McClellan chart ($NYMO) LINK.

Positions

The  Positions Section = latest buys and sells – (Revised positions last weekend) - These are positions I actually own

From yesterday – “I’m going to try to play TYH again on a small dip (if it happens) and sell it when markets get oversold. Again I’ll have a tight 3% stop.  The mistake was not to invest in a stock or ETF yesterday after it became obvious that US markets were reacting positively to what the Fed said at 2:15 EST.” Missed out when TYH dipped in the AM because I was doing taxes – bummer. The window is closing on this short term play the closer we get to oversold. Would have to see a 1 to 2 % drop in TYH to consider entering trade again today.

Going to build up to a 20% position in stocks involved with 3D technology. They can’t build 3D theaters fast enough to keep up with the demand. 3D TVs started being sold last month and a 3D channel is supposed to begin within a year.  See Tuesday’s Investors411 for more. (use calender on top of blog and click on Tuesday 5/16 then scroll down)

Long Term Outlook = CAUTIOUSLY BULLISH

AS ALWAYS DO YOUR OWN RESEARCH BEFORE INVESTING

Senator Ted Kaufman (D DE)

Financial Reform

Sadly, financial reform of greed based capitalism, shadow banks, and greater market transparency continues to deteriorate. At times it seems  as if  the 2008 meltdown never happened

Steve Forbes, this AM on CNBC proudly announced the list of the world’s richest billionaires has significantly grown in size and money, as real unemployment is the USA has fallen to near 20% (The billionaire, obviously, did not offer the last 1/2 of this comparison) Forbes, of course, does not want “big” government to regulate greed based capitalism. Outside of a few voices within the Obama administration (Paul Volker, Elizabeth Warren etc.) both the administration and the lobbyist that dominate congress seem to agree – Let business take all the risks it wants and us taxpayers plus our kids will pay trillions to fix all their mistakes

Senator Ted Kaufman (D-DE) is one of the people who is not afraid to stand up for rules based capitalism. On his website is the speech he plans to deliver today.

One legacy of the Great Depression was we built a rules based capitalist system that endured and dominated the world until a few decade ago. Here’s a summary of his ideas from The Baseline Senerio

• Excessive deregulation allowed big finance to get out of control from the 1980s – but particularly during and after the 1990s.  This led directly to the economic catastrophe in 2007-08.

• We need to modernize and apply the same general principles that were behind the Glass-Steagall, i.e., separating “boring” but essential commercial banking (running payments, offering deposits-with-insurance, etc) from “risky” other forms of financial activity

• We need size caps on the biggest banks in our financial system, preferably as a percent of GDP.

• We should tighten capital requirements substantially.

• And we must regulate derivatives more tightly – on this issue, he likes at least some of the steps being pushed by Gary Gensler at the CFTC.

The stock market will rise because Senator Kaufman’s speech is NOT impending legislation. But unless we do something we will continue to repeat the mistakes of the past and every taxpayer and their child will continue to pay an enormous price - “socializing the risk and privatizing the gain”

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. (No changes this weekend)

Another melt up day in decreased volume. Right now it seems, even though US markets are overbought, they are poised to move higher on any piece of good news.

As suggested yesterday the XLF (ETF for financial stocks) was one of several possible catalysts for continuing the rally. As the chart shows, its broken out to new highs over the last two days in increased volume.  Basically, any meaningful attempt to shadow institutions and bring transparency to related markets is getting crushed. Therefore, it sure looks like the shadow financials  will add fuel to the stock rally

Shorter term traders - Even though we are overbought, it sure looks like the McClellan will reach above 80 sooner rather than later. You might want to go long with TYH(3X technology) or FAS (3X what financials do) Buy a dip and keep tight stops.

Significant Indexes

• McClellan Oscillator rose a bit to +64.63 yesterday. We are still well above +60 or Overbought territory. StockCharts has a better version of the McClellan chart ($NYMO) LINK.
• BDI - The Baltic Dry Index, which measures the cost of world trade (also a good indicator of how China is doing since they are huge exporters/importers) has exploded higher in the last few weeks = Bulls rule BDI has flattened out in the last tree days

Positions

The  Positions Section = latest buys and sells – (Revised positions last weekend) - These are positions I actually own

IMAX – has exploded higher in HUGE volume.  It has “gaped” higher three days in a row.  In short, its going elliptical. That means expect a pull back. IMAX also reports earnings today.

Long Term Outlook = CAUTIOUSLY BULLISH

AS ALWAYS DO YOUR OWN RESEARCH BEFORE INVESTING