The Age of Greed


Dr Jonas Salk

By Yankee Bob


Back in our youth their was a very real threat to our well being from Polio. Polio was, as you know, a major killer and a debilitating disease that could have stricken any of  us at any time. Research money poured in to find the cure.

Dr. Jonas Salk did find the cure for this disease that was a bigger deal back in the 50′s then AIDS is now. Why do I mention it? Dr Salk found the cure for this major health problem and he donated it to the world as a simple act of human kindness. He felt his salary as a researcher and teacher was enough for him.

The man that could have made millions maybe even billions from his break thru did ...gave it to the world as a gift.

Can you see this happening today in this age of greed.????

Corporations are busy patenting all their research on human and plant genes. Break thrus and treatments will not be given away. This is an age of greed. Greed institutionalized by corporations. Society be damned! Corporate greed overrides human need and the political system has been overtaken from this greed.

The immediate problem is how to change the ethics when corporations have a choke hold on media. The telling of the narrative,the very image of reality presented by corporate media has to be challenged and changed…

Conclusion Tomorrow

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Great  Videos

Several of you have recently sent in some videos that are Just plane fun, have some significance or both. Keep them coming. Here’s a couple that you all will enjoy.


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STOCKS

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Europe still has Significant Influence over US Stocks


Although there are some significant analysts out their like Jim Cramer (ex Goldman Sachs executive) who believe that we got some short term stability out of the European Summit and the US should be focused on what happens here this week. The other side has a good longer term argument, despite Friday’s rally.

Friday’s low volume rally is typical of the manipulated markets we saw as our Fed flooded the USA with liquidity (QE #1, QE #2 and other less transparent measures)

The longer term problem lies in the enforced austerity of poorer European countries which is sold as they pay or the richer countries taxpayers will pay. It’s a problem is imbedded in the German and the worldwide Bankster financial system that allows phony capitalism and those troubled European bonds to bring financial Armageddon.

Remember, just like in 2008, the now threatened bonds were bought because they could be repackaged and sold as derivatives, This over leveraging in an opaque CDS system (CDS = Warren Buffet’s term Weapons of Financial Destruction) still thrives.

There are several decent editorial out there. A solid editorial by Mohamed El Erian LINK. The best I found was from The Atlantic and it may make your eyes glass over, because its technical – Here’s the LINK and here’s the money line in  Clive Crook’s editorial.

Germany’s demands are bad finance, bad fiscal policy, and bad constitutional design. You don’t fix this mess by ruling out forceful action until closer integration has been achieved. You don’t repair Europe’s underlying political dysfunction by increasing the distance between government and governed.

Bottom Line - Investors411 does NOT see as rosy picture as Cramer presents.

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Strong correlation between Europe and US stock opening price

Germany’s DAX down 1.81% at 6:15 AM EST

DAX down - 1.96% at 8:22 AM EST

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Reading The Tea Leaves

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Our #1 technical forecasting tool, the McCellan Oscillator fell slightly to +16,80. 50DMA at +11.22 = NEUTRAL

The S&P 500′s 200 DMA is proving to be a strong resistance level for US equities.

See chart at right top of blog. We have failed to significantly crack this level for 5 days. The longer we fail to crack this level significantly, the stronger it gets. We are back just below breakout levels.

Market cheerleaders are hyping that the Italian short term bond rate today fell below 6% (7% is danger level)

  • News from Europe is still a trump card.
  • Other big event of week is the Fed meets this week.

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Current Positions

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Strategy – Buy the Dip of trending sector/stock

Paul’s tutorial on Buying the Dip

Your Stock List #7 [YSL #7] is out and Paul has been updating it in the comment section of the blog. – Some excellent choices here.

SSO - (ETF that is @ 2X long the S&P 500) Bought, on dip at 46.20. A 5% stop loss order on this stock.

USO - (Oil ETF and UCO 2x oil) under consideration on dips.

All of Your Stock List #7 with links to charts may now be found  in the Positions Section of blog. (Scroll down)


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Longer Term Outlook

3 months

Fundamentals behind the LTO -

The Fed has seemingly committed to do whatever it takes to hold things together. From US equities to the European Union. Over the last few years our Fed has been a successful major manipulator of US equities -higher. Working with allies it is attempting to do the same on a global scale.

The Fed’s manipulations do NOT fix the root cause of our over leveraged opaque financial system. They, at best, offer a temporary solution to keep stocks afloat.

The Fed’s manipulations are also less transparent then before (example QE #1 & 2). Therefore market direction is that much more difficult to call. The CAUTIOUSLY BULISH Outlook is hanging on by the skin of its teeth -

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CAUTIOUSLY BULLISH

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NB – The LTO has been reduced to 3 months. Even 3 months is a stretch. Basic fundamental is Don’t Fight the Fed.But the Fed’s actions/manipulations are not transparent.

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

Everything written in BROWN is a repeat from a previous day(s)

AS ALWAYS, DO YOUR OWN RESEARCH BEFORE INVESTING

ALL TRADING INVOLVES RISK AND POTENTIAL LOSS OF PRINCIPLE

CHECK ALL DATA, I MAKE MORE THAN GRAMMAR  ERRORS.

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