The Energy Problem

Here’s the energy problem the world has to solve – The question is how. From May 24th’s Forbes – “Worldwide electrical generation is projected to increase 77% by 2030″ according to energy Secretary Steven Chu.  That’s just electricity.

How does the world and the USA as a nation meet this energy demand?  It takes 10+ years to get a possible wind farm off the coast of Massachusetts that in the end will produce 1/2 to 3/4 of the electricity for Cape Cod.  It’s easy to make a case against off shore drilling or nuclear energy, Build a case for a viable solution.

Any takers?

KISS & Stocks (Keep It Simple Stupid)

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


Index Percentage Volume
Dow -1.51% up
NASDQ -1.98% up
S&P 500 -1.88% up
Russell 2000 -2.44% -

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

Technicals, Fundamentals & Analysis

US markets dropped as The Dollar rose. The rise in the dollar vs. the Euro is anchoring or pulling stocks lower. This is the dominant theme driving the market.

Volume rose, but was only slightly above average = Mildly Bearish

Markets rose in the last 30 minutes of trading = Bullish

Nothing really happened over the weekend in Europe, but the NYT is headlining Fears Intensify That Euro Crisis Could Snowball = Bearish

Bottom Line - Almost everyone is short the Euro and long the Dollar = The dollar is going to go up & this is going to negatively impact stocks. However, technically, the dollar is more extended over its 50DMA than any time since 2008. If it goes up about another $2.00  it will reach a strong resistance level (the old 2008 highs).  This should at least in the short term, should stem the fall. (see chart below) = Bullish

The McCellan Oscillator has reached OVERSOLD territory = Bullish.

Fearless Forecast Last Week = “Up week” – Correct call

Fearless Forecast This Week = McClellan is OVERSOLD Territory and the Dollar is Overextended from its 50 Day Moving Average.  We may see a wild roller coaster ride, but by end of week stocks should inch higher.

Best case senerio – Stocks fall early this week as dollar rises and we get closer to @$88 resistance level for the dollar. The McClellan goes lower. This would set up an even better buying opportunity.

We have now entered Buy the Dip territory, especially for traders.

Longer term  Investors- The Euro, as the NYT article states could snowball lower, but at least temporarily, there is a short term trading opportunity that could be presenting itself. The dollar is what to watch.

Significant Indexes

  • McClellan Oscillator fell dramatically to -65.45 yesterday.  [+60 or above = Overbought = sell. -60 or below = Oversold = buy]. StockCharts has a better version of the McClellan chart ($NYMO)LINK. - This is OVERSOLD territory. Bullish
  • US Dollar – rose +1.00% yesterday. [Anything over +/- @0.50 is significant.] Mantra - right now The Dollar Rules is very important Dollar Rules because it broke out to new high is a significant move. = VERY BEARISH


The  Positions Section = latest buys and sells  - These are positions I actually own

Investors411 exited all positions mentioned Friday as market opened.  The only ETF position left is 5% in UWM bought two Friday’s ago.

Investors almost also has all the stock positions from YOUR Stock List. Sold 1/2 of SNDK at open on Friday.

Since the McClellan is oversold - we’ve reached Buy the Dip territory. (see above)

Longer term traders – every time we get below -60 on the McClellan its time to nibble.  The further below the better. The recent low was -123

Yes, best read of tea leaves is for markets to move lower at the start of the week. If your panicked about loosing some $ in the short term, sell at the open.

Long Term Outlook = NEUTRAL


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