YOUR Comments

The comments section is the hidden gem of the Investors411 blog. LINK Here for yesterday’s comments from stocks to politics and scroll down.

A sample -

  • Scott H - Another point about the republican debates and I’m not really picking on Republicans because the Dems do the exact same thing. Each candidate was essentially auctioning themselves off to the most powerful sectors of corporate power whether it be big oil, Wall Street, or the defense industry. Each candidate was pandering themselves to certain major corporate sectors and assuring those sectors that they would be the best return of their investment.
  • JS Back to NLY … Watching it the last few days, approaching it’s 52 week high, signs of a slowing recovery, bond, CD rates so low, investors searching for income, maybe 50 day moving average isn’t working for these high div stocks. On the other hand, ex div is coming soon, and div capture may also be adding to price rise. One thing to keep in mind, regardless of tech, is higher interest rate will effect the price of NLY. CPI rose much higher than expected today. On Motley fool, one poster said he kept a core position in NLY but took some profits when high and bought some more when low. Sounds good to me. I’ll be watching interest rates, and NLY’s price action, since it’s an outsized portion of my portfolio.
  • Yankee Bob  Mitt is by far,the best the GOP has and he is pretty bad. Your Gordon Gecko linkage is  spot on. Will the Dems have the balls to use it? Will they feature an ad of Mitt/s business  success where he buys distressed companies,sells off their assets,lay every one off and sell the equipment to overseas operations? Is that what America wants?! His job creation and Gecko past is not proof of his ability,..Just the opposite. He’s a greedy fat cat  that made money as a vulture. He created ….nothing. That’s strike one.  Strike 2  is how…

To see how Yankee Bob ends his editorial or the 21 other comments scroll down from above link and be sure to check out today’s debates, stock information or sometimes knock down drag out fights.

Tomorrow – #37 – What does it mean?

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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!

DOUBLE CHECK ALL DATA, I MAKE MORE THAN GRAMMAR MISTAKES

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Index Percentage Volume
Dow -1.48% Up
NASDQ -1.76% Up
S&P 500 -1.74% Up
Russell 2000 -1.83% -

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Technicals, Fundamentals & Analysis

  • Stocks fell big time and reversed the previous days gains. Volume increased and was modestly above average.  Of course, there was NO upside conformation of Tuesday’s rally day and when you erase a rally day in increased above average volume virtually every market guru shouts BEAR’S RULE

  • Every long term Investors411 reader should know – what the consensus of analyst now look for is big volume down day(s) that show a climax sell off and mark the end of BEARS RULE. Yesterday showed perhaps a small sign of a start, but not nearly enough volume for a capitulation/running out of sellers/ climax sell off.

  • Alice in Wonderland - Volume in US equities is getting almost entirely (sometimes over 70% HFT’s) sucked up by High Frequency Trading and monetary manipulation  This has to create distortions. Investors411 has featured some of these distortions in past (example – Starting last year how QE #2 would positively impact stocks) Investors will continue to research these critical factors in market manipulations and use findings to make investment choices.

  • The Bloom Is Off The Roses forecast from author at Seeking Alpha – Investors made this call on May 20th – but the forecast is worth reading for the nuts and bolts
  • The McClellan Oscillator (MO) chart exploded lower to -53.89 ( below -30 = somewhat oversold, below -60 = oversold, below -90 OMG oversold) The lower the MO goes the more the chances for some sort of rebound. Obviously, we’re now close to -60 so pressure for rebound/rally is building
  • $USD The Dollar rocked higher an most significant +1.83% (consider that Investors uses +/- 0.50 as a significant one day move) It broke out through resistance and formed a higher high on its chart. Today is the confirmation of yesterday’s massive move. Big tim bullish for dollar and for stocks = Bearish

  • Reading The Tea Leaves - Short term (repeat) – Staying with the same dead cat bounce pattern of lower highs and lows till it breaks down. Pattern in place since early May  The dead cat rally bounced Tuesday and fell Wednesday = Bearish. Investors411 predicted an MO of -90 to 120 this summer. It may come sooner than expected.

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Image from Yahoo Finance

  • Reading The Tea Leaves - Longer Term (repeat) –  “See May 20th blog for forecast for this summer.”

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Paul’s Corner

Congratulations to the Boston Bruins! A great game 7 and a well fought series!

I trust  most of you folks are sitting on the sidelines during this market correction. It’s scary at the moment and in my humble opinion you should be in cash.  Ian Woodward and Ron Brown from HGSI publish an outstanding News Letter every month. You’ll never find a stock  recommendation in the News Letter but what you will find is excellent market analysis and some very good lessons designed to make you your own market guru.

Here is a short snippet Ian said  in the June News Letter which came out last evening:

“Yes, there is money to be made on both the short and long side of the market with the current Market Yo-Yo behavior, but frankly it is more prudent at this stage to be patient a little longer and wait until the true direction is established. This market can cut you to ribbons, especially if you are not able to watch it in real time.

Ok since I’m quoting from the masters, Ron Brown’s Morning Report just came out and he points out the following:

I noticed on the monthly chart of the NASDAQ below that more volume has already traded this month than in the entire month of May.  This is a sign of distribution.  Tomorrow is quadruple expiration day, so it could be extremely volatile. Be careful with your capital.”

If any of you folks are interested in adding to your trading skills I encourage you to take a look at the HGSI product!

Folks this isn’t the time to play in the market, please protect your capital. Let’s sit back and watch the fun.

Remember, you are responsible for your investment decisions, and I am not.  Please do your diligence, and please take ownership for your actions because I‘m sure not going to.

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Positions

Below – Investors411  hypothetical portfolio that should outperform the S&P 500.

NLY - Annaly Capital Mgt. Ultra high dividend stock.

TZA - ETF that is 3 times short small cap stocks Bought 1/2 TZA position at 39.75 Thursday.

Gold/Silver - Repeat - No trends except gold is out performing stocks and silver. A major editorial on this in near future

Repeat –  More likely to add TZA than subtract. Would buy more TZA in small rally

RepeatInvestors411 recommends using TZA or SDS as a hedge/insurance against losses in high dividend stock NLY and especially if you own other dividend stocks (see past month+ blogs on dividend stocks.)  This way you protect prices of dividend stocks against falling prices and still collect the dividend.

Repeat Strategy remains

  • Short any rally - Investors411 will use TZA (3X short small cap stocks) and SDS (2x short S&P 500 more conservative) .
  • Sell long positions into any rally -

Disclosure - I own NLY, & TZA - I buy all stocks mentioned in the hypothetical Investors411 portfolio.

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Look for an enlightened Paul’s Corner every Tuesday & Thursday and the always informative comments section every day.

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The Fed has moved from an expanding money supply to a neutral – No QE #3. Congress is threatening to contract the money supply. “We [the USA] need to grow at this point more than anything else.” Investors411 outlook will remain negative on the USA unless the Fed and/or congress return to more pro growth policies.

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Longer Term Outlook

Neutral/CAUTIOUSLY BEARISH

AS ALWAYS, DO YOUR OWN RESEARCH BEFORE INVESTING

ALL TRADING INVOLVES RISK AND POTENTIAL LOSS OF PRINCIPLE

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