Apologies to some of you who are trying to post comments as “guests” – It’s NOT working and  only “registered users” are able to make comments. Trying to work this out.

Tea Party Patriots

Reality is that Tea Party Patriots and like groups are a major force in the USA and many of YOU have commented on their right wing radicalism, racism, and rage. NYT’s Frank Rich & Talking Points Memo . The TPP hero’s have taking some truly radical views defending BP.

  • Rand Paul defending BP wanting Obama to leave them alone.
  • Joe Barton (Republican chair of energy committee in congress) calling the $20 billion Obama got from BP a “shakedown.” He later apologized.
  • IBD (Investors Business Daily - “Rallied to  his(Barton’s) support.”), Rush Limbaugh (“the $20 billion would go to ACORN”) Republican Study Committee = “A Chicago style Shakedown.”

To the TPP’s everything is the fault of a big monster government. So much so that they would rather see YOU pay for BP disaster.

Just what is does our government do – Primarily writes checks to seniors (social security & medicare) and fight wars. (65% of federal budget and growing) Just who elected our democratic government  (20 of the last 30 years Republican Presidents)we did. Yet the TTP’s rage against government they elected as the source of their problems  - You self indulgent, arrogant  IDIOTSthe problems we have are our own making -our own fault. Take responsibility.

TPP’s are all wrapped up in sensationalism from Palin’s “drill baby drill,” to their “don’t tread in me” banner. When the TPP’s heros take a position on BP you find out just how dangerous they would be. Do NOT ignore these people.

China Revaluation

Stocks all over the world are up on news that China is loosing currency restrictions. This avoids or lessens the tensions a potential trade war with the USA. It’s a long sought goal of US foreign relations and a feather in Geithner/Obama’s cap.

If you combine this with Obama getting $20 billion from BP you could say he’s having a good week. (more on tis below)

However, no matter on how tough Obama got with China & BP his lack of support for substantive regulatory reform on the too big to fail shadow banks is a major disappointment

KISS & Stocks (Keep It Simple Stupid)

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


Index Percentage Volume
Dow +0.16% up
NASDQ +0.11% up
S&P 500 +0.13% up
Russell 2000 +0.16% -

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

Technicals, Fundamentals & Analysis

Friday was one of the most boring options expiration days ever. Usually a Quadruple witching day/options expiring means a HUGE amount of trades and a volatile market.

BIG story over weekend is China Yuan/currency has moved to a 21 month high. Bush & Obama have been pushing the Chinese to deleverage their currency from the dollar.  Looks like Obama, time & a win win situation finally moved the Chinese. Since the “Black Boxes”(see Thursday’s update) that make up 80% of the trading are fixated on a falling dollar this is going to give bulls a shot of adrenaline today = BULLISH

BDI in freefall. At some point the Black Boxes (Huge computers of Huge institutions that make up 80% of all trades) are going to notice the BDI whichis a proxy for world trade. World trade is Slowing and the  first impacted are highest exporters like China, Germany, etc.= Bearish

Fearless Forecast Last Week = “Rally Ho” We held onto gains made early in week.

Fearless Forecast This Week = Rally Ho Again – China news is extremely bullish and this surprise should boost markets above +80 on the MO scale. Conditions should be getting very oversold by the later 1/2 of week. So expect the rally to dip or flatten then.

The China news is a significant positive surprise. After years of just talking the Obama administration has got China to move. Unfortunately the news has caught us with just a small stake in equities, so we’ll miss out on what should be a big jump this AM in equities.

Significant Indexes

  • McClellan Oscillator fell to +50.47 [+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 below overbought territory = moderately overbought = moderately bearish
  • US Dollar –  The dollar continued its fall Friday -0.10% [Anything over +/- @0.50 is significant.] Mantra - right now The Dollar Rules is very important. The dollar seems destine to fall to its 50 day moving average which is $1.06 lower and rising. = Bullish
  • BDI - The  Baltic Dry Index (Measures cost of shipping – Higher costs good = more being shipped is in free fall from @ 4200 to @ 2700 Friday. The China news could impact this index today Often a lagging indicator, but clearly long term  = Bearish


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 weekend.

High beta stocks (See YOUR watch list) and high beta ETF’s (see past Investors411) going to do well early this week on China news. Could be a good short term buy the dip play here. Be careful that your choice is NOT too overextended from/above its 50 Day moving average.

Long Term Outlook = NEUTRAL


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