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 Soundtrack by Trevor Morris

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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Index Percentage Volume
Dow +1.21 Down
NASDQ +1.53 Down
S&P 500 +1.29 Down
Russell 2000 +1.51 -

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Technicals, Fundamentals & Analysis

Shorter Term Outlook.

  • Another significant price rally, but in  even weaker and below average volume  It was  dominated by the High Frequency Traders and Bank trading desks.
  • 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

Rodrigo Borgia

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 Banksone 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


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