Warren

Elizabeth Warren – fighting to save the Consumer Protection Agency.

Wall Street vs Main Street

Wall Street is toasting Main Street. You’d have thought even after the huge financial meltdown that almost shattered banking worldwide the situation would change. It hasn’t -beyond preventing a worldwide meltdown. The situation in the USA has not improved. Back in 2009 Investors411 emphasized that economic problems – especially financials were “far far far far far bigger than first imagined.” This is especially true for the USA.

Because of globalization, and almost no financial rules governing shadow banks – what’s good for Wall Street is NOT going to be good for Main Street. Unfortunately, Americans are looking for quick solutions from politicians that cater far more to Wall Street.

The bottom line - America has grown for decades into a two tiered country -Wealthy vs Poor. This divide is increasing.

Matt Taibbi vs. David Brooks

These are two editorialists often quoted in Investors411 – Taibbi’s reply to a Brooks editorial Some real fireworks here.

Consumer Financial Protection Agency

Elizabeth Warren’s fight to save Main Street from the Shadow Banks headlines the Huffington Post blog. Ironically in the tight  Senate battle in Massachusetts the Republican has promised to  be the 41st vote to block this and health care.

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!

Index Percentage Volume
Dow -0.94% up
NASDQ -1.24% up
S&P500 -1.08% up
Russell2000- -1.31% -

Investors411 record – 5 years of beating benchmark S&P 500 and almost all major US indexes

Technicals, Fundamentals & Analysis

See Positions , Strategy , and Overview for changes made over weekend.

This was our second big volume decline within 4 trading days.  This time the volume was even more significant.  Usually somewhere between two and four of these “distribution” days where a lot of investors are running for cover signals a reversal in overall market outlook.  So we could have a substantial reversal (5 to 10%).

Intel’ s, The chip making giant, earnings report was the spark for the reversal. The stock itself was down @ 3%. But what set the stage for the reversal was the weaker than expected monthly jobs report.

Bulls do have amo on their side for US stocks (NOT the economy) to move higher.  The outlook for a quick economic recovery is looking  bleaker and that means the Fed will keep interest rates lower longer, Money (unless you want near zero rates) has no where else to go but stocks. Also, and meaningful health care reform is either going to collapse or be extremely week.  This will give a huge boost to stocks (not economics) that profit off health care.

  • McClellan Index at -10.33 = Just slightly oversold.    @+60 or overbought territory & @-60 or oversold. This Oscillator has broken through strong BEARISH support @ zero (see chart). This is in the short term for stocks. NOTE -That if stocks  reach -60 or more this would be a BUYING opportunity.
  • Baltic Dry Index – The BDI has moved higher for the last three weeks.  This is good news for world trade and especially China.
  • US dollar – The dollar had been dropping for over 3 weeks and this had helped stocks. This all changed last Friday as the dollar soared +0.61% For more on all charts see STRATEGY sections

FEARLESS FORECAST – Bears paw prints are everywhere. Volume is starting to confirm the downside move. Between June and Nov. of last year 6 times the McClellan Oscillator reached -60.  It has stayed above -30 for over 2 1/2 months now. This does indicate a bullish stock bias. But we are long overdue for some sort of downside move. Forecast = Down week. However, the case for any meaningful reform from health care to financials (shadow banks) grows weaker each day.  This should temper any stock toasting

The Massachusetts Senate election will have an impact on stocks. Basically the Stock market likes gridlock and if the Republican wins the Dems will loose their 60 vote majority in congress and nothing will get done for at least the last 3 years of the Obama presidency. This means no meaningful regulations. It is a debatable point that Democrats alone would enact reform.

Positions

The  Positions Section (also at top of blog) has the latest buys and sells (Usually updated over weekends)

These are positions I actually own

SELLING & BUYING

Proposed schedule (sorry, again, limited time this AM – took the Red eye flight from California) Will cover Stocks & ETF’s tomorrow.

NB – Investor411 is going to make few moves unless we get to very oversold or overbought positions

Weekly schedule remains – (Since Monday was a holiday  charts were the focus of today)

  • Tuesday and Thursday – Stock Watch List
  • Monday Fearless Weekly Forecast and focus on multiple charts
  • Wed. & Friday – ETF’s Watch List

See POSITIONS (scroll down) for details on this and what’s under consideration for 2010.

Long Term Outlook = CAUTIOUSLY BULLISH

AS ALWAYS DO YOUR OWN RESEARCH BEFORE INVESTING!

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