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Vampire Squids

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Investment Banks

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Question???

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Who would the

Vampire Squids

rather give a Loan to?

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A group of Terrorists

(Perhaps in the Sudan)?

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A Group or Country

That’s Rioting Now (Perhaps Spain)?

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American Small Business?

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If the Vampire Squid could avoid the negative publicity associated with their loan, who would they give their money to?

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Answer

It Doesn’t Matter

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The Vampire Squid/Investment Bank

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doesn’t give a damn.

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Their big profits does not from capitalism, but from money extraction for all kinds of loans –  From the terrorist’s credit card to a Europen student loan.

They take these loans in bundles and gamble them in the unregulated casino or $600 trillion dollar derivatives market.

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There is no reason to care what the quality if the loan is.

Only worry – The profit from

the commission and gambling


.________________

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Who Pays for the

Bailout or Financial Armegeddon

If A Too Big to Fail

Vampire Squid dies?

_______

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Look deep into a Mirror

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Is This what you see?

But its coming.’.

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STOCKS

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Wall Street Bull and OWS Symbol

..

Insight into how Investors411 evaluates stocks, markets and trends can be found in the STRATEGY Section of the blog.

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Eurogeddon???

Caution - Figures in Below Graphic are dated.

Therefore, NOT Accurate

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We had some warning sign yesterday, as European markets took a big hit and US markets followed with a more minor hit.

Will Eorope recover?

Will there be another recession?

Will there be Eurogeddon?.

A tough call. But Investors411  gives you…

Why its happening,

Whose in Trouble (really everyone)

How to measure if help is coming

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Repeat from Yesterday

A graph from Zero Hedge on what’s moving stocks now

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Our Long Long Term Bullish Bias

Becomes a bit shaky because of Europe

(see below)

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Old Faithful

The McCellan Oscillator

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  • Our #1 technical forecasting tool, the McClellan Oscillator (MO) fell to -50.28. (for more see  STRATEGY link at top of blog and scroll down) We are approaching overbought territory at @-60 MO is  = NEUTRAL/bullishbullish
  • 6 month chart of MO. Remember – The MO is best at calling tops and bottoms. MO will get trumped if Spanish/Italian bonds continue to fall.

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Canary in a Coal Mine

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Investors411 uses several different gauges to determine how well Central Banks are doing at manipulating stocks and bonds. Spain and Italy are the next two countries in line that are in economic trouble.

  • Italian 10 year bond yield rose to the highest in a month yesterday and this AM 5.50% (6:45 AM EST) Well below the 7.00% Danger Zone but…
  • Spain’s 10 year bond yield rose significantly yesterday (4+%) and this AM (2+%) to 5.81% (6:45AM EST)

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From Yesterday

The Canary just Chirped.


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Paul’s Corner

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WHOOPS!

Um, Dow down 124, NASDAQ down 45, the S&P down 14, who exited the dance floor yesterday and left us standing there? A buy the dip opportunity or the start of the dreaded long overdue correction?

My good friend Ian Woodward posted a blog last evening discussing the current market and what to watch for.

LINK

As Ian suggests, yesterday was a major shot across the bow and is the second we have had in a matter of weeks.  He gives you APPL upside and down side targets. Please take a few minutes and read Ian’s blog.

YOUR Stock List

CMG – sitting on the 17, held up well yesterday.

DLTR – sitting on the 17, held up well yesterday.

ENB – chart starting to look attractive

FAST – dropped below the 17, its usual line of support, basing

FL – sitting on the 17, indicators turning red

HD – sitting on the 17, held up well yesterday.

IMAX – broke below the 50, HGSI indicators are red

IBM – closed on the 17

KLAC – dropped to the 17, its usual line of support

LEN – sitting on the 17, held up well yesterday.

MC – sitting above the 17, held up well yesterday.

MNST – sitting on the 9, held up well yesterday.

SWI – closed below the 17 and above the 50, this is a high beta stock

TSCO – good chart action yesterday, didn’t even know a correction was going on.

URI – sitting on the 17

Personally I’m going to sit out the next few dances on the market dance floor until we have a clearer idea of market direction. Too many times in instances like we are sitting, I have lost a few toes for venturing out onto the dance floor when the elephants were leaving.

As Ian suggests “Net-net, tomorrow (today) will be a key day with regard to where we sit for this Rally…It is at the crossroads.”

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We have a serious problem in the rising

yields of Spanish and Italian bond rates.

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Nervous Nelly

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The rising Bond Yields

Unless rapidly addressed are a significant problem

Sooner Rather Than Later

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The rise in yields started a month ago and is now growing faster. Spain, the worst rose 4% yesterday and has added 2% already this AM.

I don’t have the inside information or skill to to know when or how Central Banks will manipulate Spanish/Italian bonds lower or ride to the rescue.

But they always have intervened in the past.

How ECB and friends drive down rates – They supply the liquidity for banks and others to buy the bonds, therefore driving  down rates.

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But, right now it looks like they are

loosing control.

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Therefore Investors411 is closing its long position in XHB (homebuilders ETF)

with a Stop/sell order at 20.64.

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As stated many times, the Central Banks have always rode to the rescue.

Listen for the trumpet –

That’s Spanish/Italian bond rates falling.

The final look at the Spanish 10 year bond

at 8:45 AM EST.

Down a bit from 6:45 to

5.79%



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Longer Term Outlook

3 months+

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A Shaky

CAUTIOUSLY BULLISH

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AS ALWAYS, DO YOUR OWN RESEARCH BEFORE INVESTING

ALL TRADING INVOLVES RISK AND POTENTIAL LOSS OF PRINCIPLE

CHECK ALL DATA, I MAKE MORE THAN GRAMMAR  ERRORS.

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