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Vampire Squids, Bankstas,

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& Vampire Capitalism

Will Return in the next Investors411

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Republicans

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In 1928 we elected a proven businessman president. His name was Herbert Hover.  He enacted the Smoot Hawley Tariff Act. and a worldwide trade war began that sank the world into the Great Depression.

Yesterday another proven business leader running for President doubled down on his commitment to launch a trade war against China on day one of his presidency – Mitt Romney.

This is a major reason

Romney has to be stopped

Romney wrote an Op-ed in the WSJ, as the soon to be  leader of China is visiting the USA.

Fellow Republican and former ambassador to China Jon Huntsman replied –

Link to editorial and reply.

Link to video reply

  • Are the Chinese currency manipulators – Yes
  • Is the US a currency manipulator – Yes  (quantitative easing is massive currency manipulation.)
  • Are trade practices unfair – Yes

But you do NOT accuse China in front of the world court on day 1 of  your [the Romney] Presidency“.

Asian cultures are about saving face, and to China this act would be a direct escalation into a trade war. Plus,  You all know how good Republicans are at fear mongering – Think Iraq.


This has a very real possibility of happening, because there are Democrats and Republicans led by Chuck Shumer (D) who have already pass similar legislation through the Senate.

Every Neocon and weapons manufacturer is drooling at another explode (pun intended) the national debt war.

(Again more later)

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STOCKS

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Wall Street Bull & OWS Symbol

  • Mantra“INVESTORS411 has not changed its long term outlook, because this is a manipulated market. Our Central bank  has backed American banks since 2009 and the European Central Banks is now backing their Banks in the same way – by basically printing money and holding interest rates near zero.”
  • Therefore - “Anyone who wants a return on their $ greater than near 0% is pushed into assets that the ECB and Fed is manipulating higher. Our economy either gets better or the Fed has our back”
  • There could be some very negative consequences to Bernanke/Fed manipulation of markets and economies. But looking foward for 3+ months this is bullish for stocks.

Shorter Term

  • AAPL , the mother of all stocks ended up with only a 7% drop from its high, before it recovered yesterday. From yesterday – “While AAPL did go elliptical, it had above average but not huge volume behind the move.”
  • Its starting to look like US is economically recovering. Yesterday’s signs –  GM up 7%+ on earnings, weekly unemployment number lowest in many years

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  • Our #1 technical forecasting tool, the McCellan Oscillator (MO) rose to -5.26. 50 Day Moving Average at +21.62 (for more see  STRATEGY link at top of blog and scroll down)  More wiggle room for bulls than bears, but not near any clear technical tops/overbought or bottoms/oversold = NEUTRAL

Investors411 has used this one simple timing indicator to call tops, bottom and “wiggle room” (the space/room US stocks have to wiggle/move higher or lower till they reach a top or bottom) because it has been so successful for over a year.

  • What used to be the European canary in a coal mine is chirping, but a negative trend has started.
  • Italian 10 year bond yield from from at 5.84% (yesterday AM EST) to 5.62% (7:00 AM EST) - No where near the danger zone of 7.0% of just a couple weeks back.The 5 days in a row move higher trend was broken.
  • Of course the long term negative here is ECB printing presses are hard at work printing money to drive down bond yields. This is similar to US money printing (quantitative easing)
  • In the very long term this has negative consequences because the world’s banking system no longer runs on capitalism, but extraction. (A subject for many future editorials)

Bottom Line – Investors411 recommends American stocks. There are many areas to consider.

  • The former beaten up sectors are outperforming
  • Usually technology and small caps lead the way when stocks get bullish.
  • Financials are no longer running a capitalist system but running a corrupt extraction program. This sector should do well also.
  • Safest is ETF that mirror the Indexes or Sectors
  • More aggresive investors could use ETF’s that do 2x what major market sectors do.
  • YSL 2012 should outperform.

Bull Rule – Repeat“A 2 % to 5% pullback would be healthy for stocks. Even a flat consolidating stock market.” You don’t want to overheat stocks too rapidly.

Buy The Dip – But, it now looks like the dips are going to be small.

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Longer Term Outlook

3 months+

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Still

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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