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Want To Live


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Go To Denmark

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Denmark and almost every other Western Democracy has

more upward mobility than the USA.


Even the Latest Republican presidential star Rick Santorum  agrees

See Jason DeParle front page NYT article


WHY?

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Income Inequality


How Income Inequality Harms Societies

Click on Photo for Video

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Dr Richard Wilkinson presents what is perhaps the best TED presentation of 2011, You all know the Truth of what Wilkinson is saying…

“Income inequality is divisive and socially corrosive, its been around since the French Revolution…What’s changed is that we can now look at the data and see what that inequality does.”

Using UN and World Bank data Wilkinson starts out comparing gross national per capita income of 20+ market democracies – Gross income has no or little relationship to the well being  of countries (the USA is at the top in income)

But when Income Inequality between countries and within  countries is measured,  well being has a massive correlation on the following categories (the USA is at or near the bottom in every category)

  • Life Expectancy
  • Trust
  • Math and Literacy
  • Infant Mortality
  • Homicides
  • Imprisonments
  • Teenage Births
  • Obesity
  • Mental Illness
  • Drug Addiction
  • Alcohol addiction
  • High School Drop out Rate
  • Child Well Being
  • Education Scores
  • and of course Social Mobility

You can view an entire list of the data and charts in a couple minutes HERE

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Rich Developing Societies have reached

A Turning Point in History

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“Politics should be about social relationships and how we develop and sustain societies”

Bottom Line – Wilkinson genius – The measurement with hard economic data of what gets worse in countries and societies when the rich and poor move too far apart.

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STOCKS

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Wall Street Bull and OWS Symbol

  • The correlation between Europe and the USA is wakening, but still significant. The Bulls are gaining more control in the USA
  • Our #1 technical forecasting tool, the McCellan Oscillator (MO) fell to +41.14 . 50DMA at +2.02 A wee bit of bearishness, but still room for rally to grow (for more see  STRATEGY link at top of blog) = NEUTRAL/bearish
  • The potential for war between the USA/Israel and Iran has consequences. Investors/traders should be long Oil.
  • USO, UCO or Oil related stocks (See YSL 2012) Buy the first dip. (2 to 5%)
  • My single largest holding remains EUO (double short the Euro) This is because it sure looks like the Euro will continue to be devalued.
  • Over weekend I will try to update Positions section of blog to reflect changes made this week and 2012 outlook.

Overnight Data From Europe

Germany’s DAX

Italian 10 year bond

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Paul’s Corner

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Your Stock List 2012 Performance

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It will be difficult to track group performance if we drop and add on a more frequent basis than we were able to do with fixed lists. We will try to follow specific stock performance since after the stock is introduced. As we have carried some of the YSL 7 stocks forward here is their performance from Nov 29 up to yesterdays close.

FTK 40.16%

SIMO 16.60%

CMG 11.99%

AKRX 6.95%

CATM 5.88%

HANS 5.33%

DLTR 4.13%

IBM 2.06%

TSCO -0.83%

MA -1.47%

The following chart shows the 2 day performance of Your Stock List 2012.

http://people.delphiforums.com/SNOTZALOT/inv411/YSL2012GPR0105.html

Your Stock List 2012 8.93%  vs. S&P 500  7.42 for first two days.

AKRX in a buy the dip position

BKI buyable with any small dip  (now included in Your Stock List 2012)

CATM in a buy the dip position

CMG buyable with any small dip

DLTR basing

ENB  in a buy the dip position

FTK just a weeeeeeeeeeeeeeeeeeeee bit extended

HANS basing

IBM in a buy the dip position, most HGSI indicators red

KOG running, buyable with any small dip

MA HGSI indicators RED not buyable with current chart, give it time

SIMO running, buyable with any small dip

TSCO HGSI indicators red, but may be setting up again for a  buy the dip position

Any stock suggestions to be added to the list folks?

Disclaimer – all discussion is made for education only. At any time any stock may turn into an instant dog, it’s your responsibility to monitor your portfolio. Please do not count on Investors411 to issue a sell order and save your grand kid’s inheritance. At the time of writing I personally have positions in stocks included in Your Stock List 2012.


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Mosaic

The Combination Option Trade

Another winner

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See comments section and yesterday’s blog for more on this. Results for options expiration on the today

  • Me – A pathetic +4%
  • Jim +33% on 1/2 (He has not told us what hew did with the second half)
  • Critic +59%

For those who have an options expiration on the 21st.

Remember if you are out of the money the option will degrade even faster the closer you come to the 21st. (12 days)

MOS has traded between 44.7 and 55 over the last 12 days. If your Call/Put was placed at 52.5 you need about a 4% move either way to make a profit. One item in your favor is that we are entering earnings season next week and things almost always become more volatile.

As stated in the comments section lots of yesterdays rally was short covering and not fundamentally based.

Odds are you will see a 4%+ move above or below 52.5 in the next 12 days, but the trade is no longer based on the earnings report. MOS is currently at 53.50. Technically, because it gave up 1/2 its gains yesterday its outlook for today is a wee bit bearish. But that’s just for today.

All – Also remember you can sell the Put side too if its value is more than the commission.  Example MOS goes up and you sell your call next Wednesday when MOS is 54.5 You make (guess) 30%  By Friday  MOS has lost 5% of its value and each Put is then worth (guess) $30.

MOS could also shoot up to the moon. MOS is up a bit in pre market trading.

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Longer Term Outlook

3 months+

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CAUTIOUSLY BULLISH

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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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