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Pinkwashing

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By Yankee Bob

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Republicans

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“Mittastrophy”

(Huffington Post Headline)

In a major upset, Republican candidate Rick Santorum won major victories in three midwestern state primaries/caucuses. Absolutely toasting Romney and crushing Gingrich and Paul.

What’s so mind blowing about Santorum’s trifecta is he has raised only $2.2 million to Romney’s $57 million.

Analysis from Politico

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STOCKS

• Low volume rallies (like this one) have pushed stocks higher since our Fed introduced quantitative easing a couple years back. It is working again.

• Primary obstacles to success are politics within the USA and potential problems with Iran.

• Investors411 has a position in XHB (up 5.27%) This like most of the beaten down sectors that have rallied is over extended in the short term. It would be very heathy for these over extended sectors if  the rallied cooled down for a while.

• Combination Option Trades based on an earnings event – IR is under consideration this week. Reports 7:00 AM EST this AM. While this is NOT an official Investors411 trade – good luck to those of you in it.

• Long term Combination Options Trades considerations WLT (Takeover rumors) MCP (can move a lot based on rumors and news) and USO (based on potential Iran problems and other factors)

• Warren Buffett – “Why should I have a lower tax rate than my secretary”

• Steve Jobs -  Fox News is - “An incredibly distructive Force”

Remember the giant corporations and the weathy have  an army of lobbyists and lawyers in Washington. This is what they pushed for

• 1998 – Tore apart banking regulations like allowing  banks to merge with insurance companies

• 2004 – SEC allows bank over leveraging to grow from 12 to 1 to 40 to 1

• 2008/09 – Financial meltdown. Housing crisis, Bush/Paulson  bailout of too big to fail banks. -9% GDP & stocks tank

Nothing we can do becuse its all legal They privatize gains. We taxpayers subsidize the losses

• Romney (uber wealthy) paid 13.9% rate on his 2010 taxes while most working American pay far more.

• Romney’s company Bain, like hedge funds and other investment firms, pay only 15% on their profits while small business pay a much higher tax rate.

• Romney, sets up $100 millon dollar tax funds for all his sons without paying taxes. We can’t.

• Gingrich, like all politicians, can exit politics and make millions lobbying for government agencies (Fannie & Freddie)

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ITS LEGAL, ITS LEGAL, ITS LEGAL

Because they own our government.

Elizabeth Warren -

In her passionate plea to fight for the working middle class -

“Washington now works for those who can hire an army of lobbyists and an army of lawyers … 30 largest companies pay more for lobbyists than they do taxes...Who really pays for that?…And the answer is America’s middle class. They’re the ones left to pick up the pieces, to pay the taxes, to keep the country running.”

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• DAX way up 0.47% this AM (6:30EST) and the Italian 10 year bond is in full retreat for over a week. The correlation between European & US stock markets has become weaker, but still significant. Latest data below. All this = Bullish

“The Grand Slam

of Grand Slams”

Dustin Pedroia’s Grand Slam vs Yankees

No this is NOT about Baseball,

but about a financial expert/reporter/editor Dylan Ratigan who was last featured in this blog on September 28. His Rant is the

“Grand Slam of Grand Slams.”

Dylan Ratigan

Wendy Thompson Anderson brings up the August on Air Rant of Ratigan in Investors411 comments section.

Her link to the Ratigan’s Rant.

‘Tens of trillions of dollars are being extracted from our financial system…

Check out Ratigan’s award winning financial background.

If you want to take action you to help

• Join Get Money Out of Politics, I have joined along with 250,00o+ others
• Wendy and her OWS friends deserve consideration.
• You can pass on the Ratigan Rant to others.

Yankee Bob

Yankee Bob’s original editorial has been replaced with the following on Ratigan’s Rant.

Dylan Ratigan’s rant is a grand slam. It’s the Grand Slam of Grand Slams. It is inarguably right on target. Not only is it must see TV but it’s absolutely right on.

I have been saying for months that a 5th grader could solve our economic and social woes. I still believe it. So why is it so hard for our political class to do so? It’s the money!! IT’S  THE MONEY!!!

It’s the money that prevents our politicians from acting  on remedies and even when they do, it’s the money that defeats the initiatives and defeats the individuals pursuing them.

IT”S THE MONEY. Our politicians are bought and paid for. They MUST chase huge amounts of money simply to exist. The  media is literally bought and paid for and manipulates public perception of issues not, for the public good but,thru the narrow prism of corporate interests…

Continued in today’s comments section of blog.

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STOCKS

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The Fed To The Rescue

Last Wednesday the US Fed lead a group of Central Banks with promised funding for trouble Europe. WSJ Story on this. Even China’s Central Bank helped although it said it’s same day action was not coordinated with other Central Banks. They lie. The only noticeable absent institution was the German Central bank.

How the Fed tipped its hand Monday

• Investors411 last Monday brought to light the secret $1.2 trillion in loans to INTERNATIONAL banks over the 2008 meltdown. It’s only natural to infer that they would do the same for International or globalized banks in the EURO meltdown.

• Of course. the globalized banking system is further interconnected through financial WMD’s – Credit Default Swaps.

• Italy & Spain after reaching the 7% yield danger zone [where other European countries entered a “controlled defaults” on a hunk of their bond debt}  rallied on Monday for no apparent reason.

• The single largest entity on the planet able to take action is the Fed and it was rumored to be involved, since no other less powerful entity (Germans, IMF, ECB or bailout fund) had done anything but jaw bone

• The Fed’s role was becoming more apparent. It was only a matter of timing as to when they would PUBLICLY act.  If bond yields remain too high for too long in Italy and Spain their debt structure becomes unsustainable’

Therefore, we had reached critical mass (a meltdown was imminent as bonds crossed the 7% yield levels) It was now or never time for the Cavalry/The Fed.

Banks Get Bailed Out

People get Sold Out

The corrupt crony over leveraged phony capitalist system is getting bailed out again. The people of Europe who have an imposed recession (austerity measures) staring them in the face. Again the blackmail – If we don’t bail out the bondholders/shadow banks then the EURO will collapse and the resulting damage worse.

The threat of financial Armageddon has again forced bailouts. Behind all the bailouts is again the Puppet Master of a corrupt globalized banking system  - Ben Bernanke.

As Yogi Berra would say Déjà vu all Over Again.

Bottom Line Remains - 10s of trillions of dollars of wealth (See Ratigan Rant above) are being transfered under a phony, corrupt, over leveraged, privatize the gains and socialize the losses system. Banksters use catch phrases like “free markets” and capitalism” to hide the massive shift of money.

OWS Chant

“Banks Got Bailed Out

We Got Sold Out”

Cartoonist – Horsey (Thanks to Paul for heads up on this cartoon)

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“Wall Street Aristocracy Got

$1.2 Trillion in Secret Loans”

To keep us from plunging into depression  in 2008 – the too big to fail “aristocracy” got a whole lot more $$$$ than we thought. –  Bloomberg News – 8/11

Here’s the list of the Fed’s Secret lifelines (near 0% loans) to the Shadow Banks. Bloomberg LINK bigger chart and lots more data

How Much Profit did the Shadows make from

a $1,200,000,000,000 ($1.2 Trillion) Loan???

Who knows?

The too big to fail shadows don’ t even have to have mark to market accounting.

We do know they went out and bought more financial WMD’s or derivatives. The size of this market has reached - $707,568,901,000,000 (this includes $107 trillion in the last 6 months – will bet a lot of these derivities had something to do with Europe)

Growth/profits in the bubble building derivatives market increased almost 18% in the last 6 months Source & Source & Source

“We Got Sold Out”

An Alternative Solution

From Ed Yardeni – Money Magazine.

We have an inventory of @ 3.5 million unsold homes – This negatively impacts the housing price of all of our houses.

“The government could fill 2 million homes by matching the down payment, up to $20,000,  for people who aren’t already home owners. A million more buyers could collect rental income tax free for 10 years… cost at most 40 billion”

Sure there are problems, but it does take massive pressure on housing. What’s $40 billion compared to whatever the opaque nominal value of $707,568,901,000,000 is?

• Norquist & Company are not going to let the aristocracy finace this

• Jealousy over exactly who exactly gets the means based homeowner loan

• It does nothing to fix the opaque WMD financial derivatives market.

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Yankee Bob’s

Part 2

Continued from Sunday night

There are several ways the system aids financial white collar crime.

• Congress may pass laws to win their reelections but they can be toothless.

• A commission to regulate say, speculative futures trading to prevent price manipulation in basic commodities may be in place but if the commission refuses to act or parses the meaning of speculation in a way that is friendly to the speculators,…then the speculators are free to game the prices. Not really hypothetical is it?

• Another way to defang regulations is to simply not fund the enforcement by the various organs. Hence the call of all the GOP candidates to defund or cut back the EPA because who needs clean air or clean water ? Regulations cost corporations money, that’s true. But who honestly believes that the corporations can or will self regulate in the public’s interest?

Well, the GOP does. Pawlenty was outraged when that bridge in Minneapolis collapsed. Oh, months before he had cut funding to the bridge inspectors so the inspection that could have prevented it was delayed..and the bridge fell down before it was inspected.

Even when the government has regulatory powers,corporations thru lobbyists, fight to cut funding for enforcement or to put corporate friendly regulators in place. They barrage the media with advertising money.

How many stories get killed or shoved to minor space because of fear of alienating the sponsor?

We probably graduate more communications majors then social science majors. Who is there to employ them but the corporate interests? There are armies of communication majors out there working overtime to make sure that the interests of the corporations  has a stronger voice then the truth.

They shape the future by distorting the truth.

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Yankee Bob Is Back

Yankee Bob editorial below.

Bob is an artist out of North Carolina and a big fan of the 2nd place NY Yankees

What kind of democracy does not act on the will of it’s people and instead, actively thwarts the will of the majority ? What kind of Beacon of Hope can we be if on issue after issue the will of the people is ignored and now we have Presidential Contenders pretending that Corporations are people??!!

The people in poll after poll want

• The wars in Iraq and Afghanistan to end.
• More protection for the environment.
• More regulation and inspection for our food,water and air.
• To raise taxes on the Rich and to make corporations pay a fair share
• They favor restrictions on corporate donations in elections and do not share the idea that corporations are people with full Constitutional Rights
• They want the right to collective bargaining and they favor unions.
• They don’t care about the deficit nearly as much as they do about job creation.
• They want Social Security,Medicare and Medicaid extended and defended not taken apart.
• They want the Republicans to compromise and Obama to fight for this agenda not to cave in and compromise it all away.
• They favor choice over restricted abortion rights
• They favor equality for gays, not oppression.
• They favor voting rights over fake cries of voter fraud.
• They don’t want public education cut or privatized
• They favor an intensive commitment to alternative fuels and transportation and energy usage over our reliance on fossil fuels. Yet nothing is happening even though the technology exists
• They want green energy and green jobs but nothing is happening.
• They want jobs not cuts in everything they hold dear.

It doesn’t seem to matter what the people want or need. We are getting nothing. At Nuremberg,Hermann Goering was quoted that the will of the people did not matter at all. The leaders will decide the important issues and then they will use the press and PR to make them think that what we decide was their will.

Goering said – Every country does that. What kind of democracy is this where the will of the people is subverted ? We need a Roosevelt in the White House and Obama is no Roosevelt.

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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

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Technicals, Fundamentals & Analysis

Shorter Term Outlook.

day/days/week

• France, Italy & Spain have banned short selling to avoid a run on banks for next 15 days. This was done in defiance of EU regulators LINK

• Going Postal – US post office may cut another 120,000 – Post office has cut 110,000 over last few years. LINK

• The McClellan Oscillator (MO) fell to -29.61 (-30 somewhat oversold, -60 oversold, -90 OMG oversold). The MO just inched out of oversold territory. There’s wiggle room for stocks to move either way = Neural

• Reading The Tea Leaves - Stocks are moving on headlines and that move is exaggerates by all the HFT trading.

From yesterday Bottom Line - Lows were certainly retested yesterday. So the stage is technically set for some kind of oversold rally.

Today’s Bottom Line - Technically because of the retest of the low and strong momentum higher HFT’s will take markets higher.  Headlines still rule and HFT traders can react instantly and with great volume to headlines.

Longer Term Outlook

weeks, month, months

• Repeat - May 20th forecast still stands. The recent Washington debt crisis debacle has focused everyone on cutting the money supply.  Simple math – The less money that’s out there = less jobs = greater chance the “Great Recession” returns. European debt and emerging market’s inflation fears add to this.

• Long Term Outlook Listed Below.  Major long term trend (monthly) lines that have been broken. LINK If the Fed does some type of QE #3 – this also could get us back to cautiously bullish LINK

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Look for Paul’s Corner every Tuesday and Thursday

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Current Positions

Below – Investors411  hypothetical portfolio that should outperform the S&P 500.

NLY - Annaly Capital Mgt. Ultra high dividend stock – It’s been shaky, but so far NLY has held up reasonably well through current stock market slide. NLY is the only position in Investors411 hypothetical portfolio

I still have a Put position to protect NLY. (strike price $17.00 for 3rd Friday in Sept) Also puts on other dividend stocks.

GLD – (Long Gold ETF) Obviously a mistake to sell and take meager +3% profits. Like a millions of other people who see worldwide economic problems ahead – waiting to buy another dip. Gold dipped dramatically yesterday -2.19%, but at one point was down @4%. The CME group changed margin requirements on gold, and this might be a one day delayed reaction. Also sure looks like GLD had its climax run and could be settling.

Disclaimer - Personally I own  a group of dividend stocks including NLY, SNH, KMP, MO, HTD, T, ABV & AGNC and a few other smaller positions I have puts on most of dividend stocks I own. I buy everything in the hypothetical Investors411 portfolio. I also own some (sold some yesterday) SDS & TZA (ETF’s that double and triple short the market) as hedges.

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Long Term Outlook (for US Economy)

BEARISH

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Long Term Outlook (for US stocks)

CAUTIOUSLY BEARISH*

*Investors411 has 5 different long term valuations - BULLISH, CAUTIOUSLY BULLISH, NEUTRAL, CAUTIOUSLY BEARISH, and BEARISH.

* Everything written in BROWN is a repeat from a previous day

AS ALWAYS, DO YOUR OWN RESEARCH BEFORE INVESTING

ALL TRADING INVOLVES RISK AND POTENTIAL LOSS OF PRINCIPLE

We’ve Done it again.

For the Fourth time in a row Investors411′ Your Stock List has outperformed its benchmark – the S&P 500 LINK here (scroll down)

We’re looking for a few good stocks from all of you. Paul & I will evaluate them and come up with  YOUR Stock List #5 - So email to me or post in the comment section YOUR choices for YSL #5

The Borgias

To many the right wing represents a marriage of an uber wealthy banking cartel and religion. This theme can be seen in both Yankee Bob’s editorial and the Greek bailout. It sure looks like Yankee Bob got passionate when he shifted to all capitals.

Lets remember how massively unpopular the Vietnam War became. Now the revisionists claim that we lost because we lacked the will to win. Same as Iraq and Afghanistan. They completely ignore how unpopular the war was and that THERE WAS NO STRATEGIC INTEREST FOR THE US IN VIETNAM BUT WE STILL TRIED TO BOMB THEM INTO THE STONE AGE AND POISON THEIR LAND. NOW WE TRADE WITH THEM.

WE HAVE NO STRATEGIC INTEREST IN THE CURRENT WARS OTHER THEN TO MAINTAIN THE FLOW OF OIL AND OIL PROFITS FOR MULTINATIONAL OIL COMPANIES. WE DON’T HAVE TO BOMB THE AFGHANS BACK TO THE STONE AGE BECAUSE THEY ARE STILL THERE, BUT WE USE OUR SMART BOMBS ON THEM ANYWAY  TO MAKE THEIR BIG PILES OF ROCK INTO SMALLER PILES OF ROCK.

WHY ARE WE NOT IN THE STREETS OVER  ……STOPPING THE SENSELESS WARS OF AGGRESSION,LETTING BP DESTROY THE GULF AND PEOPLE’S LIVES, AND NOT DOING MUCH ABOUT IT?

THE LACK OF WALL STREET REFORM,THE LACK OF A RESPONSE TO HELP THE HOUSING MARKET AND THE FORECLOSURES, THE TOTAL LACK OF JUSTICE AND FAIRNESS IN OUR TAX SYSTEM,THE STEADY EROSION OF OUR CONSTITUTIONAL RIGHTS, THE LACK OF A RESPONSE TO THE WORLD’S CLIMATE CHANGE ,THE WAR BEING WAGED AGAINST THE MIDDLE CLASS THRU DESTROYING THE UNIONS AND OUR SUCCESSFUL GOVERNMENT RUN PROGRAMS,THE DISGRACEFUL STATE OF OUR HEALTH CARE SYSTEM,THE STAGNATION OF OUR WAGES AND HOW CAN WE ALLOW THIS NEW WAR AGAINST TEACHERS,PUBLIC SERVANTS,POLICE AND FIREMAN  BE HAPPENING?

THE ECONOMIC CRISES WE ARE IN IS FROM DEFICIT SPENDING WITH NOTHING TO SHOW FOR IT, AND THE LACK OF TAX FAIRNESS. THE WEALTHY AND THEIR MINIONS HAVE CAUSED IT, NOT OUR PUBLIC SERVANTS AND GOVERNMENT SOCIAL PROGRAMS.   YET THE RICH DEMAND EVEN MORE BLOOD FROM A STONE. WHERE IS THE CHRISTIAN RIGHT ? SURELY THIS GOES AGAINST ANYTHING JESUS PREACHED. IF JESUS CAME BACK TODAY THE RIGHT WOULD TOTALLY IGNORE HIM.

OBAMA AND THE DEMS ARE NOT HELPING! THE GOP IS TOTALLY RADICALIZED! IT’S TOO LATE FOR A THIRD PARTY1 THE ONLY SOLUTION IS TO HIT THE STREETS. REMEMBER! THEY STILL NEED OUR VOTES EVEN IF THEY DON’T NEED US !!!!!!

[Yankee Bob is an old friend and jeweler out of North Carolina]

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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

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Technicals, Fundamentals & Analysis

Shorter Term Outlook.

• One interesting aspect for those interested in the mechanics and short term trades is the vast majority of interday volume happens not at the major exchanges but in dark pools Here’s the video from Bloomberg

Pope/Banking Cartel Leader/actor – Jeremy Irons

From Showtime Series The Borgia’s

• Obviously the majority who invest in the markets feel the banks are getting a killer good deal over Greece and the people of Greece are getting the shaft. Remember the vast majority of market traders are HFT’s and/or major bank trading desks.

Its what they think that moves markets.

• Oher views on Greece outside the CNBC and mainsteam American media from Arianna Huffington The money quote

“But here’s the bigger issue: Can a truly democratic movement break the stranglehold of corrupt elites and powerful anti-democratic institutional forces that have come to characterize not just the politics of Greece, but most Western democracies”

• The McClellan Oscillator (MO) chart rose to +38.95 (above +30 somewhat overbought , above +60 overbought, above +90 OMG overbought) Repeat - The MO has been unable to get above the +30 to +50 range for 6 months. Somewhat overbought = Bearish

• $USD The Dollar fell  significantly -0.41% yesterday. (+/- 0.50 is a significant move and the dollar is usually a contrarian indicator) The trend since May 1 is bullish for dollar and bearish for stocks. Most of this movement is based on Greece. A two day fall from highs has given stocks a big boost. Short term tend for stocks now = Neutral

• Reading The Tea Leaves - Shorter term – Repeat- “Our MO chart has been very accurate in predicting short term tops and bottoms. So tea leaves say wait for an oversold or overbought levels to be reached before acting. The whole roller coaster ride of the last two weeks is a big spring winding.” An MO of +39 gives short term players an opportunity to short (or use ETF’s that short the market) any rally. The higher the MO goes the better your chances of a winning trade.

• The algorithms that the HFT’s use have a pattern of selling when the MO gets this high. (see chart of MO above)

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Current Positions

Below – Investors411  hypothetical portfolio that should outperform the S&P 500.

NLY - Annaly Capital Mgt. Ultra high dividend stock. Bought on a dip well over a month ago. Stock was up over +5%. The promised big dip (see earlier posts and comment section of blog) hit yesterday and NLY dipped -4.28% Call activity was big early this week as investors want to cash in on next dividend payout. Translation – This kind of drop has happened many times for NLY and other ultra high dividend stocks. (@13.5% dividend)

It’s the time to buy the dip if you feel NLY, as it has for many quarters, will hold onto the dividend. General market conditions could also hurt stock.

Gold /Silver Trade - These commodities usually move the opposite direction of the dollar. Dollar is going up (mostly because European outlook is bleak) so gold/silver is going down.

Shorting Banks – one major reason major US banks are underperforming stocks is that the Fed will on June 30th stop purchasing treasuries from them. This  cash cow and mortgage problems have have led this sector down. There are some signs (three weeks of flat trading)  that a short term bottom has been reached (see link above)

Repeat longer Strategy remains - Waiting for MO to hit overbought levels before acting. We started into overbought territory and will buy some SDS or TZA into rally.

• Short any rally - Investors411 will use TZA (3X short small cap stocks) and SDS (2x short S&P 500 more conservative).
• Sell long positions into any rally -

Disclosure - I own NLY &  a group of dividend stocks which I have used some short ETF’s to protect. – I buy all stocks mentioned in the hypothetical Investors411 portfolio.

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Look for an enlightened Paul’s Corner every Tuesday & Thursday and the always informative comments section every day.

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The Fed has moved from an expanding money supply to a neutral – No QE #3. Congress is threatening to contract the money supply. “We [the USA] need to grow at this point more than anything else.” Investors411 outlook will remain negative on the USA unless the Fed and/or congress return to more pro growth policies and/or Euro defaults are resolved.

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Longer Term Outlook

Neutral/CAUTIOUSLY BEARISH

The NEUTRAL in the forecast will vanish If/when we break the recent lows of the S&P 500 chart

AS ALWAYS, DO YOUR OWN RESEARCH BEFORE INVESTING

ALL TRADING INVOLVES RISK AND POTENTIAL LOSS OF PRINCIPLE

Jane Mayer/Investigative Journalist

The Secret Sharer

Editorial by Yankee Bob

In a SciFi novel you may run into a Facist Police State . In this Police state for the sake of Homeland Security, some people,citizens or outsiders may be branded as dangerous or even threats to the Security of the State and therefore, Enemies of the State. That threat that could brand citizens as enemies of the state will be decided not in a court of law with all the tenents of due process that the citizens are costitutionally entitled to.

Nope. Faceless bureacrats,agents of the government or corporate hires acting on behest of a private contractor , will make that judgement call. That call that can brand a citizen as an enemy of the state and no longer deserving of or given their rights to due process.

Now ,what kind of threats can land a citizen in such a pickle? Well,it could be some corporate hire merely finding something that they deem as ” SUSPICIOUS.” Remember,a private contractor can’t say to it’s Boss, We haven’t found anything. They have to come up with stuff no matter how shaky it may be because they have to prove that they are worth the expense. They need to justify their existence or their contract dries up. They will use powerful computers,in private ,that have the ability to monitor all communications,foreign and domestic, and cell phones,faxes, and email.

Merely going on line to certain sites could be enough to cast suspicion on you. Bank records,credit activity,taxes,birth records,travel,spending,…everything can be tracked and recorded without a warrant or court order. This can only happen in a police state you say. We have Constitutional safeguards you say. YOU ARE WRONG. THESE PROGRAMS ARE ALREADY IN PLACE AND FUNCTIONING IN THE UNITED STATES! You are being trcked and recorded!

THIS,…IS BEING ARCHIVED!

We have been warned. We were warned in bits and pieces over the years but the big picture is in place. The telecom carriers have cooperated in the program and sought and were given immunity from prosecution for breaching the rights of Americans. All communication goes thru this program. It records and archives it all ,leaving the door open for future investigation. All on the quiet and all in secret. Whether you trust Obama with this power is irrelevent. Maybe he gets replaced by a Rick Santorum or Michele Bachman type.  Maybe Dick Cheny or his daughter Liz.

How can you be free if every move and every communication is being recorded and can be used against you. You are subject to investigation merely on whim and suspiccion ,without due process. You can lose all of your rights ,at the whim of a corporation or a politician and none of it follows due process. Your rights,your freedoms sre yours but only at the perogative of unseen hands and forces. It is a brave new world! It’s a good thing none of our politicians or corporations would ever abuse this power.

Oh ,Please!! Please , Read the link!

LINK

to New Yorker Piece by Jane Mayer

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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

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Technicals, Fundamentals & Analysis

Investors411 record - 6 years of beating benchmark S&P 500

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CHANGE

IN LONG TERM OUTLOOK

After over 8 month of almost always CAUTIOUSLY BULLISH,

Investors411 is downgrading the long term outlook to NEUTRAL.

This is largely because of the uncertainty created by the Fed’s ending of QE2 (quantitative easing) on June 30th.

Stock market investors and professionals hate uncertainty. That’s what we will have after June 30th. Last year between the end of QE #1 in March and QE #2 our benchmark S&P fell (scroll down to weekly chart) at its worse @-17%. (1220 to 1011 – see chart) Every pro and serious trader is aware of this fact and may be front run the end of QE #2.

The Fed still has YOUR (stock Investors) back with low interest rates, but the lack of additional capital injections after June 30th changes the equation.  At some point down the road if the economy/stocks toasts the Fed will be forced into some form of adding liquidity. But that’s down the road.

The economic outlook worldwide is grim. Europe’s debt crisis,US debt crisis, Japan’s GDP fall/crisis, China’s corruption/inflation The bright sport remains emerging markets. When you add the democracy revolutions in the Arab world (obviously a move in the the right direction) that uncertainty grows. The economic situation NOW has more uncertainty than last year.

Technically, the traditional growth areas tech and small cap stocks are under performing.  Investors are moving into safer stocks. Dividend stocks are one of those areas.

Bottom Line -I think there is a better than 60% chance we’ll see a summer meltdown like last year. The training wheels are coming off the bike and I don’t think our economy or the world’s economy is ready to ride yet.  I hope I’m wrong.

The Fed will probably ride to the rescue with more liquidity if things go bad, but we are now entering THE UNCERTAINTY PERIOD.

Remember stocks did rise for a short period directly after QE1 ended. So this change is NOT a panic move, but a longer term move to NEUTRAL  based on uncertainty.

Holding non defensive stocks, especially high beta stocks may be a problem.

YSL #4 will under perform – sell into rallies

Investors411 may use ETF’s that short the market

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Shorter Term Forecasting Indexes

There are hundreds of forecasting tools, – These two tools have worked

When they stop working Investors411 will use other Indexes

• The Dollar (USD) [Any daily price move over +/- 0.50 is significant. Dollar usually moves inversely to stocks] Dollar fell  -0.44% yesterday. Stocks rallied as the dollar fell and rose when the dollar stopped falling yesterday.  For stocks shorter term trend = Bearish/Neutral
• McClellan Index - (MO) [The very rough guideline is over +60 = overbought market = sell positions or short stocks, & -60 = oversold market = buy stocks .] MO rose to -1.79. Squarely in the middle of = Neutral

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A List of high dividend Utility Stocks

Caution - Neither Paul or I have had a chance to go over the price charts yet.

Criteria – The three year dividend growth rate is greater than zero. Latest dividend after ticker symbol.

• EXC – 5.03 %
• ETR – 4.80%
• DPL – 4.41
• AVA – 4.36%
• DTE – 4.53%
• AGL – 4.41%
• CMS – 4.13
• D – 4.09

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Check out the advice, recommendations, analysis by bloggers on stocks,politics and trends in the comments section of the blog  Many of the best concepts regarding YOUR Financial Future are discussed their. Watch for Paul’s Corner every Tuesday and Thursday

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Longer Term Outlook

NEUTRAL

AS ALWAYS, DO YOUR OWN RESEARCH BEFORE INVESTING

Chicken Little getting ready – From the Disney Movie

Is the Economic Sky Falling?

There’s some pretty positive results from economic measures taken so far. Employment figures have turned, stocks have rocketed higher and we avoided a second depression. But there are those that see things getting a whole lot worse rapidly.

Here’s a relative credible analyst Chris Martenson who believes the economic meltdown is upon us and how to prepare for it. He has lots of valid points, but I don’t share his degree of severity

Yankee Bob Is Back

In the comments section there’s a well thought out debate on Libya.  But just before baseball season,  Yankee Bob launches another editorial.

You can read Bob’s editorial and others in yesterday’s comment section (scroll down) An excerpt and a suggested link below.

“Libya is important but not nearly as much as the the Rights Jihad against worker rights and what is unfolding at Fukeshima.”
Yankee Bob
http://www.nytimes.com/2011/03…

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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

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Technicals, Fundamentals & Analysis

Investors411 record - 6 years of beating benchmark S&P 500

BUBBLE-ICIOUS - Investors411 term for the stock market – We are all riding on the outside of an ever expanding &  Central Bank manipulated liquidity stock bubble. See Investors411 STRATEGY section for more

• Chart above from the St. Louis fed itself shows the amount of liquidity (BASE ) that has been injected into the US economy. That’s over +2.4 Trillion
• With a growing supply of money like this, and zero % interest rates its almost inevitable that US stocks grow in value. (reasons for this listed in past Investors411 for many moons)
• Almost every credible technical analyst has called for a major correction weeks and months ago.  This increase in money supply has trumped their predictions and trumped some major black swan events. Yes, everything is bubblicious and the longer it stays that way the bigger the pop at the end.
• Take Advantage of This While it Last. Fed POMO is over June 30th and who knows if we will have another. It’s possible at some stage that investors/hedge funds/brokerage houses will front run this number and sell.
• The major sign for a bubble bursting would be the dollar collapsing or your typical high volume climax run.
• Here’s a relative credible analyst (above) Chris Martenson who believes the economic meltdown is upon us and how to prepare for it. He has lots of valid points, but I don’t share his degree of severity.
• Oh yea, another low volume rally market manipulated rally yesterday.  Bad news – Poor consumer sentiment was the spark for a rally.

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Shorter Term Forecasting Indexes

• The Dollar (USD) [Any daily price move over +/- 0.50 is significant. Dollar usually moves inversely to stocks]   The dollar rose a wee bit +0.16. Bearish longer term pattern still in place, but it started  a four day bull run that’s stalled out over the last two days.  For stocks = Bullish/Neutral
• McClellan Index - (MO) [The very rough guideline is over +60 = overbought market = sell positions or short stocks, & -60 = oversold market = buy stocks .] MO fell back to +25.34. Over past three months The MO has had problems getting over +30. = Neutral/ Bearish

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Reading The Tea Leaves

MO is telling us that we are getting close to an  overbought resistance area (+30). However the dollar is the perhaps the key metric to watch. Falling dollar =rising US stocks.

What to watch today – Market movers

• USO - ETF for oil - Oil up = stocks down - Now back above $100. - Headlines from Libya.
• UUP - (Tracking ETF for dollar) Remember - The dollar is a contrarian indicator. Bad dollar = good stocks
• AAPL – Trading below 50 day MA is bearish.
• Japan Rector Developments

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Positions

ETF’s currently Under Consideration.

UCO -(2x oil prices) Why not, its also a hedge against higher gas prices. -

REMX (Rare Earth ETF) - Really believe this a good long term holding. Up 3% yesterday on verge of breakout. A risk, but, this area because of limited supply and big demand is going to outperform almost all other sectors. A buy.

DGP – (ETF is 2X gold) also SLV (silver). Breakout on worries of future inflation – Gold is moving inversely to the dollar - Dipping has my interest today, but still too far above its 50 day moving average to buy.

DBC - (Commodities ETF) For a more complete list of commodity ETF’s see POSITIONS listed at top of blog  DBC is tilted to energy.  A good alternative would be DJP that is more agriculture and metals -

RJA (Agriculture commodities Index)An ETN, not an ETF.

UWM (2x small cap stocks) TNA (3X small cap stocks)

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Look for Paul R’s (Paul is at an investment seminar this week) 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.”

Yankee Bob - just one week before the baseball season starts and Bob is back with an editorial on Nuclear Power in today’s comments section. Here’s an excerpt -

“…First rule of poker or gaming theory is never bet more then you are prepared to lose. Who paces bets on nuclear energy generation? Not the people.  Corporations looking for profit place the bets…”

Hint  - The young Red Sox’s fan pictured above is NOT making a comment on Yankee Bob’s editorial, but on a baseball team.

Investor In Wonderland – Stock market editorial below in Reading The Tea Leaves Section.

Radiation In Japan – Two other prefectures next to Tokyo have the glow in the dark radiated water. (so maybe it doesn’t glow, but I sure folks wish radiated water did glow) No “harmfull” levels in Tokyo today – or so we are told by those oh so reliable officials. Steam from all 4 reactors today. 1st time from reactor #1. This from helicopter crew with might big zoom lens 30 kilometers away from nuke plant.

Hacker Collective/Anonymous - Out with proclamation – These folks exposed The Chamber of Commerce’s hidden smear tactics against opponents and BAC’s hidden manipulations.

“getting our National Rights and dreams back….To effectively reform the system that has enslaved us, we must consider the advice and example of those who have preceded us. Thomas Jefferson, Andrew Jackson, Abraham Lincoln, Teddy Roosevelt, and JFK are good places to start. All took fierce positions against central banking, government corruption and corporate power… The time has come for us to unite, the time has come for us to stand up and fight. ”

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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

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.

Technicals, Fundamentals & Analysis

Investors411 record - 6 years of beating benchmark S&P 500

BUBBLE-ICIOUS - Investors411 term for the stock market – We are all riding on the outside of an ever expanding &  Central Bank manipulated liquidity stock bubble. See Investors411 STRATEGY section for more

• Another weak volume liquidity driven manipulated rally. Fed POMO buying ended at 11:00AM EST and that’s when US stocks started to rally
• 2 days of Fed buying = $15 billion Sure helps stocks to have a tsunami of liquidity behind the trading desks of Goldman Sachs and other shadow institutions/primary Fed dealers.
• BAC (Bank of America) was NOT allowed to issue a dividend. Our cover up specialists, oops excuse me – government regulators said no dividend for BAC, they didn’t pass the stress test, but its all opaque because no numbers were published and would you trust the numbers of people who post government job could be to work for financials they regulate.
• New home sales dipped 17% – another horrible statistic in housing. XHB – The ETF for homebuilders rallied on the news – Really I’m not kidding.

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Shorter Term Forecasting Indexes

• The Dollar (USD) [Any daily price move over +/- 0.50 is significant. Dollar usually moves inversely to stocks]   The dollar rose significantly +0.75% One day does not change the pattern. Clear bearish longer term pattern still in place. For stocks = Bullish
• McClellan Index - (MO) [The very rough guideline is over +60 = overbought market = sell positions or short stocks, & -60 = oversold market = buy stocks .] MO rose to -0.81 Right in the middle – not overbought or oversold. = Neutral

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Reading The Tea Leaves

Welcome to the world of liquidity driven Shadow & Central Bank manipulated markets. Not Alice in Wonderland, but Investor in Wonderland.

The Bad news

• Housing down 17%
• Huge Bank fails stress test.
• Oil Prices high and moving higher
• The dollar up significantly
• Radiated water in a city of 13 million people
• Another oil war looks like a protracted stalemate.
• Europe debt crisis grows as Portugal’s government collapses on a no confidence vote

So what does our stock market do – A RALLY

There is a perverse logic to this bad news is fodder for a rally.  The more bad news there is the more Central Banks (especially the USA) around the world print money or institute quantitative easing. This is all leading to one big bubble bursting down the road, but for now we have all leaned to balance on the top of that ever expanding bubble.

From Yesterday on Japan’s growing Nuclear problems –  Investors or media in the USA may not pick up on this story immediately, but it sure looks like it has major long term consequences that will impact Japan’s GDP.

At least Japan’s markets were actually DOWN a bit on bad news. But just a bit because Japan, just like the USA is going to print gobs of  TOILET PAPER (aka money)  to pay off their debt.

Short Term Bottom Line – So in honor of baseball season in just one week – Put Your Rally Caps on – This is a Bubblicious Wonderland,

What to watch today

• USO - ETF for oil - Oil up = stocks down - Now back above $100. - Headlines from Libya. (diminishing factor, but still important)
• UUP - (Tracking ETF for dollar) Remember - The dollar is a contrarian indicator. Bad dollar = good stocks
• AAPL – Trading below 50 day MA is bearish.
• Japan Rector Developments

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Positions

UWM - – Sell order still in at 43. 93 (1% above what i was bought for) which will close entire position.

ETF’s currently Under Consideration.

EWV for those who love risk is the ETF that is ultra short (2x) Japan. Problems there are under estimated and/0r covered up.

UCO -(2x oil prices) Why not, its also a hedge against higher gas prices. – approaching highs of last month & 2010 – I do own this ETF in other accounts and have sold covered calls on some of it.

REMX (Rare Earth ETF) - Really believe this a good long term holding. - Shouda Woulda Coulda – Up +3.73% two days ago - Dipped yesterday, but ended up confirming or holding onto gains. Strong consideration to buy any dip.

DGP – (ETF is 2X gold)also SLV (silver). Breakout on worries of future inflation – Buy the dip

DBC - (Commodities ETF) For a more complete list of commodity ETF’s see POSITIONS listed at top of blog  DBC is tilted to energy.  A good alternative would be DJP that is more agriculture and metals -

RJA (Agriculture commodities Index)An ETN, not an ETF.

UWM (2x small cap stocks) TNA (3X small cap stocks)

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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.”

Another day or two like yesterday and the Long Term Outlook goes back to CAUTIOUSLY BULLISH.