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“The Toxic Spider”

Rupert Murdoch’s “News” empire is under siege.

The man who is most responsible for tuning news into its vilest and lowest common denominator –  sensationalism, fear mongering, bias, hatred, manipulation, rigid partisanship etc. is embroiled in a worldwide scandal.

The steady stream of influence peddling, bribery, hacked emails of parents of Iraq vets to kidnap victims that is coming to light  is exposing the greed based empire for what it is – A toxic media spiderweb  from Fox News & The WSJ to the London Tabloids.

Many in the Murdoch empire have already resigned and been arrested  the Head of Scotland Yard has also reigned in wake of the scandal. Th FBI is now investigating in the USA.

More sourcesBloomberg/Businessweek, John Nichols/The Nation, & David Carr/NYT

Murdoch empire has been able for decades to throw millions at anyone who questioned their ethics or through the empire’s news machine crush his opponent. Perhaps this time the empire will spend billions to make it all go away.

As one editorialist put it when this is all over the collectve intelligence of the english speaking world may be raised by a few IQ points

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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 +0.34 Up
NASDQ +0.98 Down
S&P 500 +0.56 Flat
Russell 2000 +0.66 -

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Technicals, Fundamentals & Analysis

Shorter Term Outlook.

day/days/week

  • Obviously a bad week for stocks. An OMG overbought market was the initial cause behind the pullback and worries over manufactured US Debt crisis ( “manufactured” = debt is generally not desirable, but this is not a crisis that has to happen now) and Europe’s debt problems.
  • GOOG’s earnings results led bulls on Friday. Earnings week in full force this week, but every investors is looking over their shoulder about negative consequences of defaulting.

  • The High Frequency Traders and major institutions dominate and manipulate US equity trades. HFT, manipulators have formed a lobbying group to clean up their image. Like most lobbying groups, this is supposes to make us sheep feel good about the wolves circling the flock.
  • Technically, the price charts of major US indexes looks like they may be building a bearish head and shoulders pattern. If support breaks, we could see some roasting and toasting of US equities,
  • Two of our successful forecasting tools listed below
  • The McClellan Oscillator (MO) chart fell dramatically last week  from OMG overbought to neutral. -11.80 Lots of wiggle room for equities to go higher and lower.  = Neutral
  • $USD The Dollar had a series of hyper interday swings last week-0.17% Friday. (+/- 0.50 is a significant move and the dollar is usually a contrarian indicator) Prices tried and failed to break out to new five month highs. (see link to chart) The failure creates a strong resistance level and is bearish for the dollar in the long term  and therefore bullish for stocks. For stocks= Neutral
  • Reading The Tea LeavesFrom a week+ agoShorter term  - OMG oversold levels will be reached in any rally.  This put big pressure on rally to let off some steam. We did more than let off some steam from overbought conditions. Investors started to worry about US and European debt.

Longer Term Outlook

weeks, month, months

  • From Last blog Post on 7/6 – The key is to watch for is when Wall Street prices start to react negatively to the debt crisis. Longer term value  investors are taking necessary precautions to protect their portfolio due to the debt problems in Europe and the USA.
  • Reading Tea Leaves – I think the wealthy oligarchy that manipulates and makes money off US & other markets will not let the USA default on its debt. They to have too much to loose. On the other hand, there are many on the far right that feel they would benefit from the economic chaos that would occur.
  • Fear usually trumps greed, but when you drive a speeding car to the edge of a cliff and step on the breaks at the last second it may be too late to matter.

We are entering uncharted waters where even holding cash may turn into a loosing position.

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Your Stock List

Repeat from last week

Paul has published to a spreadsheet of YSL #4 in the comments section of the blog.

Like the past 3 YSL’s is beat the S&P 500 our benchmark S&P 500 again, but this time our gains were meager in comparison to the other three YOUR Stock Lists.

A new YSL is under construction. If You are on the email List send in your choices to me this week.

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Current Positions

Below – Investors411  hypothetical portfolio that should outperform the S&P 500.

NLYAnnaly Capital Mgt. Ultra high dividend stock - Has dipped down into buyable position. Caution if we do have meltdown over debt crisis this stock will take a bigger hit.

GLD & SLV - Gold has broken out to a new high and will probably surge higher today.  Silver should follow. Reasons for this is instability in Europe and US (debt crisis) Investors are rushing into these safer havens (especially gold) in anticipation of problems getting worse. I will probably add SLV to Investors411 portfolio or for those that can tolerate higher risk AGQ (ETF that is double Silver) (Warning on AGQ – it is tied to London trading exchange not US – see me if you want more on this)

I’d prefer to add GLD or DGP (double gold ETF) but fear is will open too high and would prefer a dip.

Long term Investors - GLD is by far the #1 investment (from over 20) that we have held in the non profit I’m Treasurer of. We have held a position in GLD for over 6 years.

Disclaimer - Personally I own a group of dividend stocks including NLY and have placed puts on some of them and some general ETF’s that track market indexes. JS in the comment section has used the term “insurance” to describe the way “Puts” are used protect long term investments. – email me if you want to know more or post a question in the comments section.

Obviously, day and swing traders are subject to some potential mega moves ahead in the market. Your stops may get busted and if you hold an issue overnight there is a chance that major US indexes could move dramatically higher or lower.

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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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Longer Term Outlook

NEUTRAL

AS ALWAYS, DO YOUR OWN RESEARCH BEFORE INVESTING

ALL TRADING INVOLVES RISK AND POTENTIAL LOSS OF PRINCIPLE


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