We are the 99%


Police in Oakland,  broke up the Occupy Oakland Protest.  Police used “flash grenades,”  ”tear gas.”& “riot police.” Officials used the same excuses and methods other officials to break protestors  in Egypt, and other Arab Spring countries that were fighting for jobs and democracy. Exception – There were no deaths

Photos of the incident and, are on front pages throughout the world. Just like in the Arab Spring.

Links/Photos/VideosAl JazeeraBritain, Huffington Post, Woman in wheelchair tear gassed


Here’s What We Are Fighting For


One of the 1000+ photos at wearethe99%.tumblr.com



And Another



And Another

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Chart of the Day
From Talking Points Memo

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Stocks

Overbought stocks fell dramatically on European fears and bad consumer confidence numbers. Tech leader AMZN missed earnings expectations badly (down 15% in post market trading) and European stocks are flat (7:00) AM EST.
The biggest problem in Europe is Italy (The #3 economy in the Euro zone – see yesterday’s  NYT chart) A deal?
  • #1 forecasting tool, the MO fell dramatically to 44.61 Moderately overbought = Neutral/Bearish
  • Our secondary forecasting tool the PCR rose slightly to 1.04 = Neutral
  • See Strategy section for more on MO & PCP

Reading Tea Leaves


Same as yesterday - Right now the news out of Europe trumps everything – Their financial Stocks move higher = so does everything else. Pro’s are bullish (PCR) takes some of the sting off how overbought we are (MO).

The major editorial yesterday said it all. Conclusion –  Europe is the same as the USA in 2008. If gains are allowed to be privatized by financial companies  and the risk socialized by the people the financial stocks involved will push stocks higher in the shorter term.  It will be more poverty for the middle classes who will pay the bill.

My read of the Tea Leaves is stock will keep erratically moving higher. If we close below 1225 support level on S&P 500, Long term Outlook will change back to NEUTRAL.

Our financial system desperately need  regulation, regulators,accountability & transparency. But few care about long tem solutions.

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Detective

Demystifying and Discussing

Simple Option Strategies

By JS


LEAPS

Today I’ll discuss investing in LEAPS ( Long Term AnticPation Securities).  Leaps are longer term options, for up to 2 years or more.  Today, you can by LEAPS that expire up to January, 2014.

Why buy out that long? Because it gives you a longer time to have your investment work. Many times my calls expire before the stock moves enough for my investment to pay off. I’ll watch my call expire worthless and then see 2 or 3 months later, (or a year later)  I made the right call but the wrong timing.

Example:  On June 20, this year, CSCO was $15.01.  It had reached a pretty good low. I’ve followed it since the mid ’90′s and felt it was way too low; they had lots of cash, little debt, and products that were necessary for the internet, especially with the cloud becoming bigger.

However, this market was very unstable at that time (even now). I could have bought 100 shares for $1500, but I wanted a bigger return, so I bought  LEAPS:  -CSCO130119C17.5, costing $1.33 per share or $133 per contract. I was able to purchase 10 contracts ( or 1000 shares) for $1330.

Today the result of this trade:

  • Buy 100 shares :   $1501:    price today:   $17.50, or $1750,  a profit of $250 or 17%.
  • Buy 10 contracts:  $1330:    price today:      $2.54, or $ 2540, a profit of $1210 or 90%

This option is still alive till Jan, 2013. My question (to me) is: is 90% enough or should I take my profit and run. In this market, I think I’ll take 1/2. If I had purchase shorter term options, one to 3 months out, I would have lost all or most of my investment. Also, the reason the price of this option was so low was that CSCO is not on many buy lists.

Note: this column is based on closing prices of Monday, Oct 24.

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Long Term Outlook

3 to 6+ months

CAUTIOUSLY BULLISH*


*Investors411 has 5 different long term valuations - BULLISH, CAUTIOUSLY BULLISH, NEUTRAL, CAUTIOUSLY BEARISH, and BEARISH.

* Everything written in BROWN is a repeat from a previous day(s)

AS ALWAYS, DO YOUR OWN RESEARCH BEFORE INVESTING

ALL TRADING INVOLVES RISK AND POTENTIAL LOSS OF PRINCIPLE

CHECK ALL DATA, I MAKE MORE THAN GRAMER ERRORS.


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