The Vampire Squid

The People vs Goldman Sach’s

Matt Taibbi back with another editorial in the Rolling Stone. Matt’s the guy who immortalize GS as a Vampire Squid sucking on the face of humanity. He just keeps getting better and better. You can be damn sure that none of the cheerleading financial channels will dare to have him on.

Here’s Some of the money quotes

  • They weren’t murderers or anything; they had merely stolen more money than most people can rationally conceive of, from their own customers, in a few blinks of an eye
  • [Goldman Sachs] – “stands as the most important symbol of Wall Street’s aristocratic impunity and prosecutorial immunity produced since the crash of 2008…

  • used its canny perception of an upcoming disaster (one which it helped create, incidentally) as an opportunity to enrich itself, not only at the expense of clients but ultimately, through the bailouts and the collateral damage of the wrecked economy, at the expense of society. The bank seemed to count on the unwillingness or inability of federal regulators to stop them…

  • stands now on the precipice of officially getting away with one of the biggest financial crimes in history….

  • This isn’t just a matter of a few seedy guys stealing a few bucks. This is America: Corporate stealing is practically the national pastime, and Goldman Sachs is far from the only company to get away with doing it….

  • if Goldman skates without so much as a trial — it will confirm once and for all the embarrassing truth: that the law in America is subjective, and crime is defined not by what you did, but by who you are.”

“Stealing by corporate America is practically a national pastime.” The ruling wealthy plutocracy that benefits from GS rules the USA. Almost untouchable. Yet their financed media finds ways of pitting the middle class who they use and abuse against each other and the poor.

Vast amounts of wealth have been transfered to the wealthy elite over decades while they focus/fear monger you on racial prejudice, patriotism, religious bias, jealousy, greed, endless wars, cutting everything except the aristocracy.

TREND – As other countries develop their middle class, the consumers of the shrinking middle class in the USA will become even less important.

_____________

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

_____________

Index Percentage Volume
Dow -1.02% up
NASDQ -0.93% up
S&P 500 -1.11% up
Russell 2000 -1.78% -

_____________

.

Technicals, Fundamentals & Analysis

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

  • The weekly jobless numbers come out today and will act as a confirmation of how the economy is doing.
  • A bad jobless number is not necessarily bad for stocks, because it means it means the potential for more quantitative easing.
  • The dollar rising means many of those who have for months been dollar bears and long commodities are getting out of their positions, This hurts stocks and you saw the damage on Silver (down 8.34%) & oil (down 5.44%) yesterday.
  • BRAVO – The US government finally won a sizable court VICTORY – Hedge Fund bigwig Raj Rajaratham was convicted on all 14 counts of insider trading
  • Translation – You decide - Hedge Funds and others will think twice because this guy should get serious jail time or this is just the tip of the iceberg. Everyones doing it and the underfunded SEC can’t begin to catch all the crooks.
  • How the Wall Street day sets up from Seeking Alpha (Not good)

_________________

Shorter Term Forecasting Indexes

There are hundreds of forecasting tools, – These two tools have worked

When they stop working Investors411 will use other Indexes

  • The Dollar (USD) [Any daily price move over +/- 0.50 is significant. Dollar usually moves inversely to stocks] Dollar rose a whopping +0.96%yesterday. Third major move higher in 5 day broke through the 50 day moving average. It’s the major reason stocks fell yesterday. Long term trend is bearish, but the short term trend is clearly bullish. For stocks = Bearish
  • McClellan Index - (MO) [The very rough guideline is over +60 = overbought market = sell positions or short stocks, & -60 = oversold market = buy stocks .] Mo on fell dramatically to +1.98. Back squarely in the middle. = Neutral

________________

Paul’s Corner

We were all set up for our 4th day of the rally, futures looked good and then after the opening bell, the heat mat of the S&P 500 turned almost solid red. “Humph looks like a trying day coming“. Reports of a growth in inventory of crude and gasoline started a slide in commodities. The EURO fell with concerns over Europe’s debt crisis, the dollar rose and you guessed it the market took a hit.

YSL 4 had mixed trading and nothing gross happened to the group. SPRD, CPHD and SAP all had a good day.  SPRD  needs to settle down and base a bit before a buy would be safe. RNOW dropped below the 50 but it did that on low volume.  Volume on many of the YSL 4 stocks was normal or even low.

*****

As I often state, I use HGSI software as my primary stock analysis program. It has great interactive charts, the best screening in the business, the ability to make your own groups and indexes along with excellent support.

Next week May 18th Jeffrey Scott a HGSI user is going to present a HGSI Webinar and will show how he uses HGSI in his successful trading. I invite any of you who are interested in a quality analysis program  and building your trading skills to watch the webinar.

The Power Of HGSI Webinar May 18th from 8:00pm to 9:30pm EDT Registration is required and the webinar is free.

See LINK

Please note, I am a HGSI user, I pay a monthly fee for the program and I receive no compensation for recommending the product.

*****

These past few months have not been easy to trade with a full stomach. Folks are asking for longer term trades,  all of the stocks on YSL have the quality for long term trades. UFS Domtar, a paper company was added to Your Stock List on August 23, 2010. Priced about 57.15 it closed yesterday at 104.26, with an 87% gain in 9 months. It also has a small dividend.  Common stocks can be nice long term investments. It looks like UFS should have not been removed from YSL.

So what’s the market going to do today? Let’s load up Quote Tracker………here we go folks another day of fun!

Remember, you are responsible for your investment decisions, and I am not.  Please do your diligence, and please take ownership for your actions.

*****

Editor’s note – Click on POSITIONS at top  of blog and scroll down for YSL 4 & 4.5 Stocks mentioned above or LINK here

________________

Dividend Stocks

Caution - The Critic (in the comments section of the blog) reminds that the two high dividend stocks NLY and ANGC are too far above their 50 day moving averages to buy now and longer term investors should wait to buy the dip.

________________

.

Positions

Reading The Tea Leaves – From Yesterday – MO has been an amazing accurate forecasting tool for the past year.  It saying we are getting near a technical top – Yesterday saw a major market reversal led by commodities (silver and oil)

Investors411 mantra has been to wait for the MO to get down toward -60 to buy.

The commodities trade (commodities rally of many months) is unwinding as the dollar goes higher.  Speculators, hedge funds, huge institutions etc. who have built up major positions are unwinding those positions. It took many months to build these positions in commodities and the dollar. It will probably take more than a week to unwind these positions.

UUP – The tracking ETF for the dollar still the index to watch.

Disclosure - I have personal ETF positions in REMX and manage a fund that has a 5+ year position in GLD. I also own NLY and AGNC mentioned above

I have a position = Either I own it personally or a member of my family does.  I also manage an account for a non profit organization.

The Investors411 PortfolioThe stocks in YSL #4/4.5, REMX, plus all trades mentioned  in this section. (example the SLV and ZLS trades mentioned in April and May) AGNC & NLY will be added on a dip

  • REMX – Still trading above 50 day moving average which would be a buying point if your interested in owning rare earth mining companies.
  • ZSL (double short silver) – A potential trade today. Silver is just a % point of two from its last week low. Silver bears are going to try break the bulls today. If they do you might catch a significant downside move.  All of this depends on the dollar. Dollar/Euro trade is at a major support level. Bad news in Europe could set off a chain of events that drive Silver and oil lower.  Not a solid trade with and established trend, but one with potential because momentum with bears. Will mention in comments section if I am about to make trade.

______________

Check out the advice, recommendations, analysis by bloggers on stocks,politics and trends in the comments section of the blog  Many of the best concepts regarding YOUR Financial Future are discussed their. Watch foPaul’s Corner every Tuesday and Thursday

_________________

Longer Term Outlook

CAUTIOUSLY BULLISH

AS ALWAYS, DO YOUR OWN RESEARCH BEFORE INVESTING

  • Share/Save/Bookmark