News Briefs


But First a photo story from the 99%

I chose my dog.

New Photo/Stories of the 99% at

LINK


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Briefs


  • Herman Cain accuses Rick Perry of orchestrating Sex smear campaign - NYT & FOX
  • Latest Poll out yesterday on Republicans – Cain 30%, Romney 23% Others 10% or lower. LINK
  • “The flip-flopper tag he [Romney] earned four years ago is taking on new resonance”. “Afraid to Lead” FOX News
  • Cain’s 12 year old harassment accusation seem minor compared to other political sex scandals.
  • Comparison –  OWS has had over 3000 arrests while those calling for democracy in Syria have over 3000 deaths
  • Syria responds to Arab League’s proposal to end violence in Syria with threat – “Volcano” of blood if attacked LINK
  • OWS Oakland Thousands peacefully demonstrate, marred by no one hurt vandalism/arrests at night. LINK
  • Poll 75% of Americans support Obama’s Leaving Iraq withdrawal LINK
  • Fed downgrades future GDP and employment numbers. Stocks hold gains. LINK
  • God in politics –  Obama on his jobs plan “Even God wants to put Americans back to work.”  LINK
  • Split in Greece over referendum NYT
  • Private ADP report shows 110,000 jobs added – juices stocks yesterday LINK
  • Europe has an unfunded plan that involves a 50% bond haircut and Greek austerity. If December referendum in Greece fails, then a whole bunch of CDS’s (over leveraged gambling) blow up causing EU & US banks big big big trouble. How German Chancellor feels about the Greek referendum shown in her face below.

The Face


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STOCKS

Same Question

Will The Baby Bear Market Hang On?

Fundamentals move markets and the most important one out there is the resolution of the European crisis. German markets up 2.62% at 8:30 EST.

However, today we have the governments weekly jobs report. It is a short term market mover and mildly positive results expected. Jobs numbers are - 397,000  = Unemployment number. Pre market trading seems to slightly like this below 400k number.   Friday’s monthly report BIG #


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Reading The Tea Leaves

  • Our secondary indicator, the Put Call Ratio fell to 1.17. Its 50DMA which is at 1.16 = NEUTRAL
  • For more on MO & PCR see POSITION Section of blog (scroll down)

Remember – Fundaments (Like earnings reports) move stocks. All technicals can do is offer guideposts – like stop signs, speed limits and red/yellow/green lights. Fundamentals are the drivers who can blow right past any technical signals or just put the car in reverse.

Technicals are NEUTRAL. For reasons illuminated yesterday bulls have the mojo.

Yesterday’s Short Term Prediction Still Holds – So, at least for now, that baby bear is in trouble.

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Paul’s Corner

Failure?

That’s right folks failure YSL 5 was a failure. It only gave us 6.81% while the S&P 500 yielded 9.14%.  I’m really disappointed with the list only giving ups 6.81% in 50 days of trading.  That’s an annualized yield of only 30% (approx.). Come on folks what a disappointment, we could have made more money by buying a CD at the local bank. CD yields are currently  1% , and I’m closing out my trading account and  going down to the local S&L and  opening up a safe and secure CD!

Actually folks 6.81% during the past 10 weeks of chaos in the markets due to the constant news feed from the Euro War Zone ain’t half bad. Frankly it would have been easier on the stomach during this current correction if one would have been in cash the whole time as the yield on the portfolio changed hourly depending on the news feed of the moment.

If one had this portfolio and had wisely cut CROX and GMCR when the chart first dictated, the results would have been closer to 10% for the 50 days of trading. So was YSL  failure? I don’t think so, you folks picked a great bunch of stocks and now is the time to email Barr and make your suggestions for YSL 6. I believe we are going to keep 10 members of YSL 5 so we have room for 5 new stocks.

I am enjoying reading Gil Morales new book “How To Trade Like an O’Neil Disciple”. Here are a few interesting points from the 1st chapter.

“Buy based on both fundamental and technicals, but sell purely technicals. Technical action should always be the final judge  when selling the stock.” (GMCR & CROX)

“No matter how great a stock‘s fundamentals, a serious bear market will usually  drag a stock down.”

“While earnings are one of the most important variables used to gauge a potential stock, sales growth is a useful metric for (new) stocks with no earnings. Understanding the fundamental story behind a stock together with understanding how Wall Street perceives the story  behind the stock proves beneficial.”

This is going to be a great book to read!


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Positions


Paul has morphed YSL #5 into a new YSL #6 by eliminating the stocks with poor earnings reports (see comments section of blog.)

SPY - Our other position has a stop/loss order at 1211.

GLD – Breaking out – A buy the small dip consideration


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Long Term Outlook

3 to 6+ months

Benchmark S &P 500 is our line in the sand. Any serious break of this support level changes LTO to NEUTRAL


CAUTIOUSLY BULLISH


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 GRAMER ERRORS.

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