Bush/Obama holding hands with world’s richest totalitarian

Totalitarianism

Egypt - Day 16

Latest from Egypt

There are a whole string of mostly American back dictators backing the inhumane Mubarak. Remember Saudi Arabia where most of the 911 hijackers come from?

This oil rich totalitarian regime along with our American media and governments collaborate to keep what happens in their totalitarian regime from YOU. Not Investors411. Let’s present the reality of Mubarak’s biggest backer and Bush/Obama’s biggest hand holders -

How the Saudi’s treat

  • Jews – They send out text books across the world depicting Jew’s as monkey’s and pigs.
  • Journalists - For criticizing an electric company a journalist was given 50 lashes in front of the company and put in jail for 6 months.
  • Women – For going unaccompanied with a man to a building a women was given 300 lashes and a one year jail term

The above facts are from Human Right’s Watch founder Robert Bernstein video [source - Bloomberg's Taking Stock show with Henry Pimm - Paul's favorite financial network]

We sell $60 billion worth of weapons to the Saudi’s from our military industrial complex yet almost No Americans have ever heard of Cyber Dissidents.org who fight for freedom and justice in a gulag of dictatorships.


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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 +0.06% up
NASDQ -0.29% up
S&P 500 -0.28% up
Russell 2000 -0.54% -

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Technicals, Fundamentals & Analysis

Investors411 record - 6 years of beating benchmark S&P 500

  • Flat to moderate declines in weak volume.
  • Short term over bought US indexes took an out of breath break yesterday.
  • Mantra till it no longer worksstill endorsing the concept that the Fed POMO [schedule] is and will be the key factor in keeping a long term rally going. .
  • Mantra #250% to 70% of the volume on US stock exchange is soaked up by High Frequency Trades ‘s chasing imbalances in trades. This means 30% to 50% of volume is made up or real or valuation investors.
  • Major fundamental causes for Wall Street concern at the moment – Inflation in emerging markets, European debt, will the Suez canal stay open.
  • Another Bearish forecast – “Yield Curve” is steepest ever – difference between rates of 2 (so low) & 10 (rising, but down 2.23% yesterday)year treasury bonds.

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Significant Shorter Term Forecasting Indexes

  • The Dollar (USD) [Any daily price move over +/- 0.50 is significant. Dollar usually moves inversely to stocks] Dollar fell  yesterday  -0.46%. Looks like dollar bears may be back and for stocks that’s = Bullish
  • McClellan Index – (MO) [The very rough guideline is over +60 = overbought market = sell positions or short stocks, & -60 = oversold market = buy stocks.] Fell to to +10.38. Over the last three months the new parameters seems to be +/- 30 as an overbought/oversold level.  Stocks outlook = Neutral

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Reading The Tea Leaves

Same mantraA manipulated US stock market is moving higher on stimulus, low interest rates and quantitative easing. Financials and stocks have received unbelievable support from our government and the Fed to pay off their over leveraged debt.

Photo - Helicopter Ben Bernanke - Dishing out a Tsunami of liquidity to US economy

Major emerging markets are in a meltdownA correction of 5% to 10% has turned into a 10% to 20+% meltdown. Inflation is the enemy. China, Brazil and India all had about a 2% drop yesterday.

From yesterday - Gold, and commodities may work as a hedge on inflation, but when it comes to the USA,  going short equities provides much more protection.

Falling dollarThe other major factor keeping US stocks in rally mode is the falling dollar.

Bottom Line

  • Short termtoo many up days in a row. Minor correction due
  • Longer termFed liquidity tsunami is having a negative impact on the rest of the world, but keeping US afloat. Problem s what happens when the liquidity dries up? But when is uncertain (QE #2 goes to June) and if economic news is bad will there be a QE#3.

What to watch today

UUP - (Tracking ETF for dollar)  See $USD above for more. Dollar may be turning back down. From yesterday -When after a short rally a stock/sector index opens and closes at same price it often indicates a reversal. We’ve had a significant reversal down. Today will confirm/or not, that reversal

Remember - The dollar is a contrarian indicator. Bad dollar = good stocks

AAPL –  The tech general broke out to a new high in moderately higher volume. Up 4 days in a row.

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Positions

The  Positions Section link to latest & former buys and sells  - These are positions I actually own

(I do manage 6 accounts that have other positions).

Current ETF Positions. (oldest held positions listed first)(see comments section where all trades are first announced)

  • UWM (1/2 position, took 5+% profits already)
  • REMX (1/2 position, took 5+% profits already) Took a big hit yesterday.
  • DBC
  • RJA

UCO -(2x oil prices)  On dips. Wait till it consolidates lower  and returns to pre Egypt crisis levels or below.

REMX (Rare Earth ETF) – Really believe this a good long term holding. Considering buying more on a dip.

DGP – (ETF is 2X gold) .

DBC – (Commodities ETF) For a more complete list of commodity ETF’s see POSITIONS listed at top of blog  DBC is tilted to energy. Perhaps preferable or a good alternative would be *DJP that is more agriculture and metals.

*RJA (Agriculture commodities Index)An  ETN, not an ETF.

UWM (2x small cap stocks) – Have set stop/loss for last 1/2 at 40.02 -the price it was bought for.

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Look for Paul R’s always enlightening remarks on stocks and sectors in the comments section of the blog. See POSITION section of blog (at top of page) for lists of potential stocks & ETF’s including “YOUR Stock List.” (YSL#4 is under construction.)

Longer Term Outlook - CAUTIOUSLY BULLISH

AS ALWAYS, DO YOUR OWN RESEARCH BEFORE INVESTING!

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