Rolling Stone Photo – Wall Street Wives

If you haven’t taken your blood pressure medication this AM – Please take an extra dose before reading below.

Wall Street Wives – Matt Taibbi from the Rolling Stone has come up with another jaw dropper. Remember Geithner and Bernanke’s Wall Street Bailout. Seems that the “wives of   JPMorgan bigwigs walked away with $220 million dollars.” Opening line of editorial – “Most Americans know about that budget. What they don’t know is that there is another budget of roughly equal heft, traditionally maintained in complete secrecy“

The Closing Government Soap Opera. – Remember all the media attention of the $38 billion the Republicans were supposedly cutting from the budget. Two days ago the press went bananas when they found out it was only $14 billion. Yesterday the non partisan CBO put the actual figure at $353 million. Yes, that’s million with an M.

Crony Capitalism - It’s simply not fair to put the blame on the real housewives of of Wall Street or JPM. Now that the Fed was forced to open its books we find out the real husbands at Goldman Sachs got (See Matt Taibbi’s piece) $800 billion from the Fed. Yes, that’s billion with a B.

Get out of Jail Free - The US Treasury Department actually used hash language toward shadow bankers in a sternly worded proclamation Remember the phony foreclosures, robocalls etc. reveled months ago. Billions evaporated thousands lost their homes. Bankers got a tender tap in their wrists. The NYT has finally caught on and its headline story is on No one from Wall Street goes to Jail

GE is to return $3.2 billion tax rebates!? The whole AP story turned out to be a hoax. YOU pay taxes, GE doesn’t. – Bummer

The Prestigious Pinocchio Award. The Japanese government has been less than than honest about the nuclear reactor situation. FYI – TEPCO has just confirmed reactor 4 is open air fussion. YANKEE BOB is back in the comments section (scroll down) with an editorial. Here’s a sample – “the gamble with public safety to use Nuclear energy to boil water has failed.”

Maybe we’re more than just a morsal for Wall Street sharks. EW in the comments sections saw Obama’s deficit speech as hopeful – Obama quotes “There’s nothing serious about a plan that claims to reduce the deficit by spending a trillion dollars on tax cuts for millionaires and billionaires,” …. “There’s nothing courageous about asking for sacrifice from those who can least afford it and don’t have any clout on Capitol Hill. And this is not a vision of the America I know.”

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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

Today a format change to focus more time on three investments for the 2nd quarter. But first here’s market news

• Fed’s ZIRP (Zero Interest Rate Policy) & QE 2 is sustaining stock rally and forces anyone who wants a high yield is forces into higher risk stocks,  or junk bonds.
• Yesterday’s action was no more than a pause (slight uptick) and we’re close, but haven’t reached oversold levels or a buy the dip level yet
• Paul often makes closing remarks in the comments section of the blog. From yesterday – “If any of you folks like to study the charts, you’ll see on many of the major indicies a clear “double top’ and that often signals coming hell fire and brimstone’s”

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Three Top Investment Areas

Rare Earth Metals - REMX (link to chart)

REMX is the ETF that tracks the major rare earth metal companies. Most data below is from Van Eck Global owner of REMX ETF.

This is a simple supply/demand story. The demand outstrips the supply. China currently provides 97% of rare earth metal production. InDec. of 2010 China announced it would cut exports of rare earth metals 35% because to keep some for their own use. REMX has only 17% exposure to china. It takes a long time to mine these metals so many of the companies REMX invest in have yet to become major producers. Obviously the companies/mines outside China are ramping up production as fast as possible.

Some applications for Rare earth metals include hybrid cars,steel alloys, wind turbines, flat screen TV’s, jet engines & cell phones. So you can understand the demand.

Downside risk – If we fall into a second recession or depression REMX will suffer. However it should outperform because of the supply/demand issue.

Gold - GLD & DGP (2x or ultra long gold)(both ticker symbols are links to charts)

GLD & DGP (2X) are the ETF’s that track gold prices. Obviously DGP carries twice the risk/reward.

Arguably the #1 source for gold information is GFMS Reuters last week featured their supply/demand analysis on both gold and silver. The fundamentals are relevant, but we all know, gold prices move higher on fear of the future.

I follow Jesse’s Cafe Americain on both gold and silver. The technical analysis and inside information is superb. In the future Investors411 will give updates from this site.

Silver – SLV & AGQ (2x silver) (both ticker symbols are links to charts)

SLV & AGQ are the ETF’s that track silver prices. Obviously AGQ carries twice the risk/reward.

Silver has more industrial uses. Links to important information on silver above.

If you are considering investing in this area or just want a good laugh you have to watch one of the two bears videos on silver. “You want me to buy more silver? Holy s–t man I’m going to s–t my pants.”

Paul would be a great source on individual gold, silver and rare earth companies if you are interested ask. MCP is the one company that I like in rare earth field. We almost put this on YOUR Stock List #4, but decided REMX would cover the sector.

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Positions

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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.”

What in a mirror? A vase, A slave, Your soul?

Wall Street Killing America’s Soul

Paul R has referenced an excellent piece by Paul B Farrell in the comments section of the blog. It’s exactly what Yankee Bob talks about (again in comments section) when he states-

No matter how small or logically challenged the Tea Partiers are they are invaluable to Corporate Capitalism. [I call it "casino capitalism"] It gives the major players and shakers a human face to spread their poisonous agenda . It’s like interviewing a slave that believes they are being well treated by their master so why don’t you become one too.

You should check out Farrell’s entire editorial, but let’s look at the “hyperspeed, toxic irrationality… of Wall Street (“Corporate capitalism” or “casino capitalism”). Farrell from Market Watch –

• All Wall Street bankers are worth 100 times any Main Street investor
• All Corporate American CEOs deserve to make 400 times their workers
• All children of all Forbes 400 billionaires deserve to inherit tax-free
• All lobbyists deserve millions when winning billions for special interests
• All taxpayers should pay for catastrophic mistakes of Wall Street Fat Cats
• All rich hedge fund managers deserve to be taxed at capital gains rates
• All senators deserve to become millionaire lobbyists when they retire
• And Goldman Sachs CEO Lloyd Blankfein deserves a $100 million bonus

This is the reality we live in – A reality that creates the deficits that John S, Me and even the TTP’s are outraged over. Yankee Bob understands that so many perhaps unaware slaves (the TTP’s) to the system that privatizes gains, socializes losses & creates deficits. Jim J. rightly concludes that we don’t want “less government,” but “Effective Government.”

Bottom Line – What will you do? Just keep staring in the mirror or take action.

The General & The President

Headline news around the US is about the Rolling Stone article The Runaway General. Will General McChrystal get fired or hand in his resignation for insubordinate remarks (he’s apologized) he and his staff made about Obama and his administration.  Tom Friedman’s view

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	-1.43%	flat
NASDQ	-1.19%	flat
S&P 500	-1.61%	up
Russell 2000	-2.14%	-

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

Technicals, Fundamentals & Analysis

Analysis of stocks has become an analysis of what the “Black Boxes“,of  huge institutions with their high frequency trades & computer algorithms are doing. Their focus ,now, is on the huge currency trading markets.

Fed makes interest rates announcement today.

YOUR Questions

From private emails and public comments lets go over four aspects-

• The BDI – I brought back the BDI Index because it was reaching a critical mass. This measurement of world trade had fallen so far and is close to a major support level that the fundamentals (trade) factors it represent were too big for even the Black Boxes to ignore.
• The MO – It’s not a magic bullet. But it does show you when the odds are in your favor to make a trade. There are many similar Indexes, but this one was chosen because it does NOT use stock volume. Volume has become less relevant because the “Black Box Computers” have taken over trading.
• This is NOT your parents buy and hold market. The USA shadow financial corporations are running an opaque unregulated banking system. We have a congress and & administration that is unable or unwilling to balance the system so YOU have the same advantages as (as Yankee Bob would put it) your corporate masters.
• Because of point 3, everything is more opaque & more volatile. Emotionalism, fear, and irrationality make owning most stocks far more risky than in the past. Example, Right now the BDI besides loosing 40% is close to breaking down. A breakdown here greatly increases the chances of a second major recession on top of the first.

Significant Indexes

• McClellan Oscillator (MO) fell significantly to +1.01 [+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. NEUTRAL
• US Dollar –  The dollar rose yesterday +0.13% [Anything over +/- @0.50 is significant.] Mantra - right now The Dollar Rules is very important. Dollar up = stocks down and visa versa. This was the first two up days in a row for the last 13 sessions. Yesterday confirmed the previous days more significant move. For stocks =Bearish
• BDI - The  Baltic Dry Index (Measures cost of shipping – Higher costs good = more being shipped. BDI is in free fall from @4200 to  2547 yesterday. This is a huge -39% drop in 5+ weeks.  Often a leading indicator for stocks. Now at/ just above a support level. Rate of fall declined yesterday. This index often makes slow changes, so diminished decline (@40% less) could be the start of a reversal. However, clearly long term  = Bearish

Reading the Tea Leaves-

Apple computer seems to be single handedly keeping this market afloat. It’s one of the stocks on YOUR Stock List. However, emerging markets especially China is still the key to worldwide growth.

The mantra continues to be watch FXE (EURO currency ETF) and UUP (US currency ETF)

Positions

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

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

DGP is ETF that is double long gold. Investors411 plans to buy the dip in this ETF.

Long Term Outlook = NEUTRAL

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!

Index	Percentage	Volume
Dow	+0.07%	up
NASDQ	+0.17%	up
S&P 500	-0.10%	up
Russell 2000	+0.64%	-

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

Elizabeth Warren – fighting to save the Consumer Protection Agency.

Wall Street vs Main Street

Wall Street is toasting Main Street. You’d have thought even after the huge financial meltdown that almost shattered banking worldwide the situation would change. It hasn’t -beyond preventing a worldwide meltdown. The situation in the USA has not improved. Back in 2009 Investors411 emphasized that economic problems – especially financials were “far far far far far bigger than first imagined.” This is especially true for the USA.

Because of globalization, and almost no financial rules governing shadow banks – what’s good for Wall Street is NOT going to be good for Main Street. Unfortunately, Americans are looking for quick solutions from politicians that cater far more to Wall Street.

The bottom line - America has grown for decades into a two tiered country -Wealthy vs Poor. This divide is increasing.

Matt Taibbi vs. David Brooks

These are two editorialists often quoted in Investors411 – Taibbi’s reply to a Brooks editorial Some real fireworks here.

Consumer Financial Protection Agency

Elizabeth Warren’s fight to save Main Street from the Shadow Banks headlines the Huffington Post blog. Ironically in the tight  Senate battle in Massachusetts the Republican has promised to  be the 41st vote to block this and health care.

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	-0.94%	up
NASDQ	-1.24%	up
S&P500	-1.08%	up
Russell2000-	-1.31%	-

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.

This was our second big volume decline within 4 trading days.  This time the volume was even more significant.  Usually somewhere between two and four of these “distribution” days where a lot of investors are running for cover signals a reversal in overall market outlook.  So we could have a substantial reversal (5 to 10%).

Intel’ s, The chip making giant, earnings report was the spark for the reversal. The stock itself was down @ 3%. But what set the stage for the reversal was the weaker than expected monthly jobs report.

Bulls do have amo on their side for US stocks (NOT the economy) to move higher.  The outlook for a quick economic recovery is looking  bleaker and that means the Fed will keep interest rates lower longer, Money (unless you want near zero rates) has no where else to go but stocks. Also, and meaningful health care reform is either going to collapse or be extremely week.  This will give a huge boost to stocks (not economics) that profit off health care.

• McClellan Index at -10.33 = Just slightly oversold.    @+60 or overbought territory & @-60 or oversold. This Oscillator has broken through strong BEARISH support @ zero (see chart). This is in the short term for stocks. NOTE -That if stocks  reach -60 or more this would be a BUYING opportunity.
• Baltic Dry Index – The BDI has moved higher for the last three weeks.  This is good news for world trade and especially China.
• US dollar – The dollar had been dropping for over 3 weeks and this had helped stocks. This all changed last Friday as the dollar soared +0.61% For more on all charts see STRATEGY sections
  

FEARLESS FORECAST – Bears paw prints are everywhere. Volume is starting to confirm the downside move. Between June and Nov. of last year 6 times the McClellan Oscillator reached -60.  It has stayed above -30 for over 2 1/2 months now. This does indicate a bullish stock bias. But we are long overdue for some sort of downside move. Forecast = Down week. However, the case for any meaningful reform from health care to financials (shadow banks) grows weaker each day.  This should temper any stock toasting

The Massachusetts Senate election will have an impact on stocks. Basically the Stock market likes gridlock and if the Republican wins the Dems will loose their 60 vote majority in congress and nothing will get done for at least the last 3 years of the Obama presidency. This means no meaningful regulations. It is a debatable point that Democrats alone would enact reform.

Positions

The  Positions Section (also at top of blog) has the latest buys and sells (Usually updated over weekends)

These are positions I actually own

SELLING & BUYING

Proposed schedule (sorry, again, limited time this AM – took the Red eye flight from California) Will cover Stocks & ETF’s tomorrow.

NB – Investor411 is going to make few moves unless we get to very oversold or overbought positions

Weekly schedule remains – (Since Monday was a holiday  charts were the focus of today)

• Tuesday and Thursday – Stock Watch List
• Monday Fearless Weekly Forecast and focus on multiple charts
• Wed. & Friday – ETF’s Watch List

See POSITIONS (scroll down) for details on this and what’s under consideration for 2010.

Long Term Outlook = CAUTIOUSLY BULLISH

Putting Money Where You Mouth Is

Charging Bull- Bowling Green NY

Investors in everything from Wall Street to the Dollar (a much bigger market) put their money down because they believe that at some future time they will profit from their investment. These are primarily the world richest people and money managers investing in the future.  Of course, it also includes a lot of upper and mid level middle class people who the money managers (mutual, hedge, 401k university, institutional etc) invest for.

Lets say there are two groups – one willing to invest in riskier assets and the second group (perhaps burned too many times) who seek safe havens – Put  money under the mattress, low yield CD’s, government bonds.

Government bonds are popular . Right now across the world and in the USA almost every time our government sells debt (usually in 2, 5 10 year  and longer term treasury bonds) there is an over abundance of buyers in this safe haven This is great for the USA . Not only does low rates mean the gov’t borrows at low rates, but it is an investment in America’s financial future.

The dollar is rising . The short & mid term trend for the dollar is higher (see explanation below). For the sake of this editorial (putting money where your mouth is) a strong or rising dollar says investors from around the world have confidence in the direction the USA is heading .

Wall Street rising . The fact that equities have now basically moved up over the last 8/9 months is a positive signal for the economic direction of US companies. Wall Street historically looks 6+ months into the future. (This does vary radically from day traders to decades long stock holders.) Wall Street is saying confidence is rising in the USA.

Bottom Line – There are a whole lot of connected and wealthier people around the world who are optimistic on the future of the USA. This does not mean there are not problems. You can also argue over who is responsible for this rising confidence from Obama to emerging markets. But the bottom line is people are putting money down and expect better economic results in the future of the USA.

You can argue that there is not a lot of volume behind the stock move higher is a bad sign. However when you see people flocking to buy our treasury bonds, the dollar rising, and stocks still near yearly highs – Investor’s mouths may be saying one thing, but they are investing in our future. That’s a good thing

Afghanistan and $

The Huffungton Post & TMP  this AM is headlining a story (Surge 2) that there will be 56,000 private contractors in Afghanistan to rebuild there economy. Sorry I’d rather see those 56,00 rebuild our economy. LINK

Bernanke, Time Magazine’s Man of the Year

KISS & STOCKS

Keep It Simple Stupid

AS ALWAYS, DO YOUR OWN RESEARCH BEFORE INVESTING!

Index	Percentage	Volume
Dow	-0.47%	up
NASDQ	-0.50%	up
S&P500	0.55%	up
Russell2000-	-0.57%	-

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

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

Technicals, Fundamentals & Analysis

Fed Chair – Ben Bernanke is Time Magazine’s Person of the Year (more later)

The Fed meets this week and makes an announcement tomorrow. Any change in outlook (unlikely) will impact markets. Trading usually light before Fed meeting. No change in the Fed statement about interest rates would be bullish.

Dollar went up so stocks went down yesterday. This inverse correlation has weakened recently. However stocks couldn’t rally in the face of a major move higher in the dollar. (See below)

Again were seeing down days with increased volume. Historically a bearish sign .

FEARLESS WEEKLY FORECAST – Up to flat week . But be careful we are entering overbought territory (see below) and if rally continues I’ll be taking profits rather than adding to stocks.

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

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Significant forecasting tools/Indexes for stock markets

(Besides #1 Volume & #2 Reaction to News)

BDI - The Baltic Dry Index measures the flow of goods by price (world trade) .

The BDI  fell (was flat) -12 points yesterday and closed at 3518. It’s interesting how smooth and seemingly predictable the BDI is in the short term. The rate of the decline is declining and with about 80+% certainty you can predict a flat to up day today.   Since Mid November highs the BDI (see chart) has established a clear downward trend = bearish signal

What it means long term – Since the low of Oct 2008 technically the long term chart is = Bullish. However we are now in a month+ long correction. Mid term trend = Bearish The BDI is far more useful as a long term indicator of not only world trade, but specifically China and growing emerging markets.

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The Dollar is currently the #1 forecasting tool (now weakening as a predictor)

$USD - Check out the 6 month chart (to the left) or a multi year chart of the US dollar of the US dollar. Mantra – Dollar up = US stocks down & Dollar down = US stocks up US dollar was rose a significant yesterday +0.76% . Anything close to or over +/- 0.50 is significant The dollar closed at $76.93 . Technically have broken up through the 50 day moving average resistance level and now broken out through another significant resistance level the Oct/Nov highat 76.82 = Bullish for dollar & bearish for stocks

The mid term trend is now bullish and the long term trend (looking at weekly or monthly charts of price) is bearish

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$NYMO The NY Stock Exchange McClellan (EOD) Index measures how much the NYSE is oversold or overbought .

There’s been a dramatic change in the last 4 trading sessions. We broke out of the range (see below) and are close to  overbought/sell positions . The index closed at +21.20 This is a slightly Overbought Position

From past updates – It’s spilled over a little bit, but the McClellan index has moved between +25 & -25 for a month+ =  There has been no clear buy or sell signal for over a month.

Oversold conditions (@-60) = buy, Overbought positions (@+60) = sell The closer we get to +/- 60 the better our chances of making money with a shorter term buy/sell signal

Bottom Line – Start thinking about taking profits, especially into any continued rally.

Positions

The  Positions Section (top of blog) to see all the latest buys and sells

(again a little behind on latest moves)

Will wait to buy some ETF’s and stocks when McClellan Index/Oscillator approaches overbought (@+60)

Recommended ETF’s and Trades

SELLING & BUYING

Your Comments - (See “Monitor’s” comments on side of blog – About a week  ago Investors411 sold its positions in GLD. DGP, AMZN & NVS ) – Not interested in opening any new positions right now Waiting for a clear signal from MCellan Index to commit additional capital or sell existing positions .

If we rally into the end of this week I’d take some more profits

Near bailing out on small investment in BAC

Long Term Outlook = CAUTIOUSLY BULLISH