Photo from Common Dreams

Chris Hedges is a graduate of Harvard Divinity School and a 2 decade long correspondent for the NYT – also CSM, DMN, & NPR. The Acadamy Award Winning Film – The Hurt Locker opened with a quote from a Hedges’ book.

One can defend may things about capitalism. However, Hedges writes a potent editorial that starts -

When did our democracy die?”

You may think this introduction is over the top, because the fact that I’m bringing you his words shows that the flame of democracy still burns. However,  Hedges does make many substantive points that are thought provoking.

  • When did the press, labor, universities, the Democratic part.. wither and atrophy”
  • Is “corporate power” … “inverted totalitarianism?”
  • Over decades – “a massive redistribution of wealth.”
  • “These [corporate] elites do not have a vision [of democracy] . They know only one word—more.”
  • The money quote -

although the heads of state or elected officials in Congress have become largely irrelevant. Lobbyists write the bills. Lobbyists get them passed. Lobbyists make sure you get the money to be elected. And lobbyists employ you when you get out of office. Those who hold actual power are the tiny elite who manage the corporations

What do YOU think?

Is Democracy Dead?


KISS & Stocks

(Keep It Simple Stupid)

If you don’t understand a term look in up at Investopedia.com dictionary




Index Percentage Volume
Dow -0.21% down
NASDQ +0.20% down
S&P 500 -0.16% down
Russell 2000 -0.17% -



Technicals, Fundamentals & Analysis

Investors411 record - 6 years of beating benchmark S&P 500

  • All eyes on silver trade yesterday and today as climax buying (LINK to definition) reached a peak yesterday and a meltdown in foreign markets this AM.
  • Stocks continued to have abysmal volume, despite the fact that we are in the middle of earnings season.
  • Low volume gives Fed’s quantitative easing more influence to move markets up.
  • US dollar in clear long and short term bear run. – Good for stocks in short term.
  • Good contrarian article on the possibility of a dollar rally. This would hurt stocks. Do see possibility of short term rally.
  • News of the week  - Bernanke speaking after the Fed Meeting Wednesday (Thanks to EW for mentioning this in comment section of blog)
  • What investors want to hear from Bernanke is more quantitative easing or QE 3.
  • The big longer term news is the ramification if the dollar continues to fall (See editorial above)



Shorter Term Forecasting Indexes

There are hundreds of forecasting tools, – These two tools have worked

When they stop working Investors411 will use other Indexes

  • The Dollar (USD) [Any daily price move over +/- 0.50 is significant. Dollar usually moves inversely to stocks]   -0.17 yesterday. Clear longer and shorter term bearish trend. For US stocks = Bullish
  • McClellan Index - (MO) [The very rough guideline is over +60 = overbought market = sell positions or short stocks, & -60 = oversold market = buy stocks .] Fell to +10.47. = Neutral



Reading The Tea Leaves

For Silver and Gold investors - Obviously  these commodities went elliptical or had a climax run. or a blowoff top yesterday. Translation – So many investors bought silver that it ran out of buyers. See SLV chart below and look at the big volume SLV on last Thursday & Friday and the record massive volume yesterday. Look at how far above its 50 day moving average (blue line on chart) SLV is.

Silver is the leader and gold went along for the ride. So it too is taking a hit in sympathy with silver.

Since its peak Sunday night SLV is down almost 10% as I write.

The fundamentals, as described yesterday, have not changed. However, we have to wait for the bears to take a bite out of gold and silver before getting back in. Simply too many folks pilled in too quickly. Perhaps the dust will settle today/a week/ a month/ longer. This is much harder to predict than a climax run. Because the fundamentals are so strong, I look for a shorter rather than longer meltdown.

For Stock Investors – It’s the middle of earnings season and volume was abysmal. That means the Fed’s quantitative easing rules and the bulls have the momentum. One very significant point is the dollar did not rally as silver fell from yesterday’s high. Perhaps it will today and this will negatively impact stocks. Sometimes there is a delayed reaction.

Bottom line is that the dollar down/stocks up trends are still in place, but may be in correction for the next day or two. Bernake’s, first time Fed chair speaks after a FOMC meeting, on Wednesday is a market mover.

For long term traders and everyone –  Arnold, the Terminator’s, famous words for gold/silver – “ I’ll be back” invested in silver/gold. We had a year’s run compressed into a month.

The learning part of all of this is sell into a climax run. Judging from the comments section lots of you did just that.


NB – Check out chart of REMX. (Rare Earth Metals) It too had a climax run around New Years day. It reached a high of  @27, then and is now over 28. Consolidating gains after breaking out to a new high.

What to watch today - For shorter term traders – Market movers.

  • USO - ETF for oil - Oil up = stocks down.
  • UUP(Tracking ETF for dollar) Remember - Usually the dollar is a contrarian indicator for stocks. Any major fall may give temporary help to US stocks, but a major breakdown also signal major structural problems with the USA.
  • SLVWent elliptical and in meltdown



The POSITIONS Section at top of the blog is a link to 4 different portfolios. It’s full of investment idea. The actively managed portfolios #3 &4 - Aggressive ETF Trading & Your Stock List.

Check out YOUR Stock List. - 6 or 7 of the 15 stocks are at highs

Disclosure – I have personal  positions in REMX,  SLV (small covered call position@ $40) RJA and manage a fund that has a 5 year position in GLD


Look for Paul R’s always enlightening remarks on stocks and sectors in the comments section of the blog. SeePOSITION section of blog (at top of page) for lists of potential stocks & ETF’s including ”YOUR Stock List.”

Longer Term Outlook - CAUTIOUSLY BULLISH


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