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The Dying Democracy –  We the People

  • Tea Party just got $1,000,000 from an anonymous donor
  • The hidden money “stampeding” in elections from Time magazine (Thanks to Ewanapat for this reference)
  • Fox News $1,000,000 contribution to Republicans
  • Recent Supreme Court decision that opened the door for Corporations and other entities to unlimitedly fund propaganda against any political candidate.

Do you really believe your measly one vote and restricted financial contribution has the power of a $1,000,000 dollar anonymous contribution in an election?

Wake up and smell the coffee!

  • Obama caved in to the Insurance monopoly on health care because they give fat checks
  • McCain has gone mute on campaign finance reform because this oligarchy is behind him
  • Islamophobia is flourishing because the weapons industry’s has massive financial contribution power .

In Alaska and Delaware massive amounts of money came into tea party candidates and they came from 20 to 30 % down in polls in 6 weeks to beat the establishment Republican candidates with a blizzard of negative adds. In Alaska the known amount of $ that came in (almost all from outside the state) was over $600,000 or $more than $10 a vote. This does not count all those anonymous negative adds.

This blog will continue to be The Resistance for those who want to terminate American democracy. Yes, I’ll send in my limited transparent contribution, speak out for we the people, and vote.

Mega trend - vanishing middle/working class in America. Growing working/middle class in emerging markets. Loss of democratic values.

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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

Index Percentage Volume
Dow -0.20% down
NASDQ -0.63% flat
S&P -0.48% up
Russell 2000 -1.20% -

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Technicals, Fundamentals & Analysis

Investors411 record – 5 years of beating benchmark S&P 500

Mantra for September“The Black Box/High Frequency Traders BB/HFT control the majority of trades. Jim Cramer -”BB/HFT make up 80% of trades.

Term of the Day – Overextended - This is when a stock, sector or index goes up too far too fast, in usually increased volume, It simply runs out of buyers and has to consolidate. There are many ways to measure this. Investors411, for bullish stocks. uses the distance a stock is from its 50 Day Moving Average (blue line on charts)

Simply by looking at one of the many charts referenced in Investors411 you can see how far away (space between) the 50 Day Moving Average is from the price. The more volume there is adds to its over extension – more buyers piling in.  You would be chasing a winner and it is better to wait for some sort of pull back or consolidation to invest.

US Markets

Again thanks to Paul R for analysis of YOUR Stock LIst.  14.4% gains! Will try to put together another stock list after earnings season has matured. (earnings can radically alter the price of stocks) Look for Paul’s in Comments section of blog.

Fed continues to print and inject $ in to the economy – $2 billion yesterday. Just what are the banks doing with this $? Who knows? We have a less than transparent financial system. Bottom Line here is the worry about deflation. Fed sure looking like it wants to push dollar lower.

“Stocks won’t crash unless earnings do” from Seeking Alpha author. Fed, sure looks like its manipulating to get a good earning season from globalized US firms.

Significant Indexes

  • The Dollar (USD) [Anything daily price move over +/- 0.50 is significant. Dollar moves inversely to stocks] The dollar, fell significant  -0.76% yesterday breaking a major support levelBullish
  • The Baltic Dry Index (BDI) [measures cost of world trade. Also proxy for China & emerging markets] Fell  -2.97% yesterday. 8th down day in a row. After 8 week bull run trend seems to be changing to = Bearish
  • McClellan Index – (MO) [The rough guideline is over +60 = overbought market = sell positions or short stocks, & -60 = oversold market = buy stocks.] MO fell  to +3.87 yesterday. Trend is bearish Location of index as far as buying/selling or overbought/oversold = NEUTRAL

Reading Tea Leaves

Something’s big is happening. The dollar and stocks for three months have had almost a 90% inverse correlation. The dollar drops, US goods (exports) cost less abroad and therefore profits rise, and stocks rise. The dollar, falling almost 2% in two days & breaking a support level should have had stocks exploding higher. It didn’t.

A weak dollar also shows a fear of weakens in the American economy relative to others.

Currency trading is a huge market, that every major entity tries to manipulate. However because of its size its hard to manipulate for long in an open market. The Chinese (and some others) basically have a closed market on their currency.

Bottom Line - When a long term pattern breaks down it almost always means change of some type. Fundamentally,lower dollar = higher profits for US exporters is going to help globalized companies, but now the soundness of the American economy is also being questioned.  This is Bearish

The MO – In tech speak this chart has broken down from what’s called a “head and shoulders” trading pattern, Usually means there is more downside risk & area around -20 on MO is now a new support level.

Bottom Line - Gold is historically a hedge against a falling dollar, The dollar melting rapidly through support levels also shows perceived strength in Emerging Markets economies,

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 Longer Term positions -

  • EWS (Singapore)
  • USO (price of oil/commodity)- fall of dollar negatively impacting this.
  • SSO (2x what S&P does- this ETF is more a trade that may turn into an investment) I have a 2% trailing stop on this trade

Because of falling dollar looking to add to long term holding in emerging markets (see POSITION section of blog) Only caution is do NOT chase stocks that are too over extended from 5oDMA  Would like to see MO reach @-20 before nibbling.

Biggest mistake Investors411 has made this year was talking about but not buying GLD (ETF for gold) earlier this year.

Long Term Outlook - CAUTIOUSLY BULLISH

AS ALWAYS, DO YOUR OWN RESEARCH BEFORE INVESTING!

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