Trust

One Republican Candidate for President stands out

far above all the othersJon Huntsman

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Romney lashed out and tried to humiliate Huntsman for being Obama’s ambassador to China in a debate this weekend.

Remember when everyone on the right lashed out at anyone who took a stand against America’s war in Iraq as un-American or not patriotic?

Huntsman replied that’s just what’s wrong with American politics.

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“America is divided because of politics like Romney’s… Romney puts politics first…I’m someone who believes in putting America first.”


Romney is fear mongering to the fact that American’s don’t trust each other.

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If you viewed Friday’s video by Richard Wilkinson you know that Trust has a lot to do with big gap between Incomes of Americans.

Click on photo of Wilkinson below to see video

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In Wilkinson’s presentation he has one chart which compares the lack of trust in 20+ democracies.

The USA is where income disparity is greatest. So to is the mistrust among Americans greater than the mistrust among citizens of other countries with less income disparity.

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Super PAC’s

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How You Lose Democracy


After Romney’s super Pac decimated Gingrich in Iowa, it seems Newt got a billionaire to fund a super PAC and is going after Romney in South Carolina. Story in NYT and here

I’m sure Obama will have his super PAC if he is to compete.

Bottom Line

Democracy is being bought by the uber weathy and corporate oligarchy. Money buys negative campign adds that pounds the negative message home and buys the vote


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STOCKS

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Wall Street Bull and OWS Symbol

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  • The correlation between Europe and the USA is still weakening, but still significant. The Bulls are gaining more control in the USA. For three days US markets have done better than European – A trend bullish may be starting in US
  • Earnings season traditionally starts after the bell with Alcoa’s earnings report
  • The European Central Bank intervened to support Italian bonds, but the yield is still just over the danger zone 7%.  Today’s news
  • Check out links below for more accurate picture of how US markets will be influenced by Europe. Germany dominates, but Italy is significant.

Overnight Data From Europe

Germany’s DAX

Italian 10 year bond

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Let the Battle Begin

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As stock market war breaks out

Below is a chart of the Battle Plan

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SPY DAILY

Chart from ETF Digest

Those horizontal blue lines are the areas bulls and bears are making their big stand according to chart analyst.

As you can see on this chart of the benchmark S&P 500, prices have risen to the top blue line – a major defensive line for the bears. If it breaks, bulls hope to stampede through and drive prices higher.

The majority of serious investors believe in this stuff, so we have to pay attention. This battle becomes even more important because earnings season is starting

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Top Long Term Investment

EUO Investors411 has been beating the drum for buying the dip of this ETF that double shorts the Euro in the blog, comment section, and anyone who asks what my #1 investment is.

Buy the dip of this trend.

When to exit trade.

  • A climax sell off. Where volume increases and prices drop dramatically.
  • Lighten up at its major resistance area. For this look at the ETF that tracks the Euro – FXE
  • The FXE is at 126.71 with its major support level/defensive line just below 120

Reasoning – The last time the Euro (European currency) was in such trouble was the summer of 2010, This crisis is worse and the ECB (European Central Bank) is lowering interest rates to fight it.

It also acts as a hedge for the long term dividend stocks I have. It Europe shrinks or collapses, the USA markets and dividend stocks will be negatively impacted.

The euro goes down usually means the US dollar goes up. They are the #1 & 2 currencies in the world and, therefore, pegged against each other. This makes the cost of US goods more abroad and hurting major US exporters.


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Combination Option Trade

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JPMorgan’s size and scope makes it a bellwether for financial companies worldwide, as they wonder whether bank stocks will grow in the months to come. - JPMorgan’s size and scope makes it a bellwether for financial companies worldwide, as they wonder whether bank stocks will grow in the months to come. | LUCAS JACKSON/REUTERS

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Yes, I realize lots Option trading is too technical for many of you. Buy a book or read an on line tutorial

What conservative option trading allows you to do is risk a defined amount of money to have ownership of a much larger (1 put/call to 100 shares of stock ratio) amount of stock for a set period of time.

This week two combination option trades are being considered AA & JPM. For more see Critic’s post in the comment section of yesterday’s blog. (scroll down)

JPM looks to be the better trade of the two and reports before the bell on Friday. AA reports after the bell today.

More in comments section of the blog.


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Longer Term Outlook

3 months+

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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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