The long awaited YOUR Stock List #7 is published today

5 of the last 6 YSL’s toasted the S&P 500.

See Paul’s Corner Below


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Effective Government



People as Sheep

Almost 1/2 of the sheeple in the USA have been hit over the head so many time with this concept they believe this -


“Just get government out of the way and everything will be fine.”

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How to Administer Economic

Shock Therapy

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Start with –  So you want to eliminate the US military – because its part of government. This will usually get loud NO repose – except from libertarians. Nevertheless you’ve opened the door to part of government can be effective.

Tell them – Having a well disciplined effective government works – Just like a well disdiplined military.  We took that discipline away  when we deregulated our financial industry .

The story


  • In 1998 we deregulated our financial institutions – everybody was for it -Democrats Republicans even Alan Greenspan.
  • Bankers are wicked smart and had recently found a new way to make money called Derivatives or Credit Default Swaps. This involved making a bets on the solvency of different bundles of debt.
  • Since they had an unregulated opaque derivatives that they thought would protect them they went right ahead and offered fabulous cheap mortgages to Americans.
  • These wicked smart bankers also bought bonds off some troubled European countries because they they had unregulated derivatives to back them up.

The rest is history – the 2008 meltdown and the EURO meltdown we are now in. This has caused the greatest recession of our lifetimes and it will get worse unless we again have effective government.

I’ll outline some details and cost figures when there is more time. You can do so by looking at past Investor411′s. But the obvious bottom line is -

Effective Government regulations work.

Good discipline is important just like it is in the army


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STOCKS


The Puppet Master

Goes Global


Yesterday the Puppet Master and his assistants proved he’s still in charge as global equities soared. Volume was light and, of course the algorithms of the HFT’s made up most of the the trades.

World equity markets soared

How does the puppet master make the puppet dance? My best read of the tea leaves is that he and is assistants intervene in the bond and/or derivatives market. They  drive down the bond yields of certain at risk countries (probably Spain and Italy, perhaps even the USA) or their derivative spreads by making purchases.

Traders/Investors, who have robotically based their stock purchases on the implosion of Euro bonds saw the yeilds fall and found some other place to park their money – stocks.

The puppet master had already pulled the strings and worked his magic in the USA bringing stock prices up from the infamous low of 666 in 2009 to yesterday’s close 1192 (S&P price)

What’s happened is that the puppet master has gone global.

Actually he had gone global long before this (see list of secret loans to foreign and US banks in yesterday’s Investors411  financial chart) Now with new allies like foreign governments, central banks, even other major financial institutions he is making his presence felt.


Who is the Puppet Master?



Fed Chair Ben Bernanke


Some hate Bernanke with a passion, others are his ardent allies. Investors411 simply recognizes him as the puppet master who is holding the world’s fragile economy in balance.


Germany’s DAX today up +0.70% at 6:45 AM EST

Up +0.44% at 8:45 AM EST

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Reading The Tea Leaves


Our #1 technical forecasting tool, the McCellan Oscillator fell to -52,05. 50DMA at +8.99Bullish/Neutral

Were still a bit more oversold than neutral – Even after yesterday’s massive rally – so for now bulls rule.

From yesterday – It sure looks like the predicted oversold Monday rally is about to happen.

Bottom Line – Old Wall Street axiom

Don’t fight the Fed.

The Fed manipulated the puppet strings (some hidden others transparent) and the USA didn’t go over the cliff. Can they and their allies do the same in Europe? – They certainly picked a perfect spot to make a big move. Our MO indicator was at -100 or OMG oversold levels.


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Paul’s Corner


YSL 7 Watch List

Here you go folks, YSL 7! A mix of some well known stocks and a few new to most of us. Stocks were selected from reader suggestions and Barr and I tossed in a few.


AKRX Akorn, Inc. engages in the manufacture and marketing of diagnostic and therapeutic pharmaceutical products, hospital drugs, and injectable pharmaceuticals in the United States and internationally. It offers products in various specialty areas, including ophthalmology, antidotes, anti-infectives, pain management, anesthesia, and vaccines.

CATM Cardtronics, Inc., together with its subsidiaries, provides automated consumer financial services through its network of automated teller machines (ATMs) and multi-function financial services kiosks. As of June 30, 2011, it offered services to approximately 37,800 devices across its portfolio, which included approximately 31,600 devices located in 50 states of the United States,

CMG Chipotle Mexican Grill, Inc. develops and operates fast-casual, fresh Mexican food restaurants in the United States. It also operates restaurants in Toronto, Canada and in London, the United Kingdom. As of October 20, 2011, it operated 1,100 restaurants. Chipotle Mexican Grill, Inc. was founded in 1993 and is based in Denver, Colorado.

DECK Deckers Outdoor Corporation engages in the design, manufacture, and marketing of footwear and accessories for outdoor activities and casual lifestyle use to men, women, and children.

DLTR Dollar Tree, Inc. operates discount variety stores in the United States and Canada. Its stores offer merchandise primarily at the fixed price of $1.00. (Now serving the former middle class!)

FTK Flotek Industries, Inc., together with its subsidiaries, develops and supplies drilling and production related products and services to the energy and mining industries in the United States and internationally. The company operates in three segments: Chemicals, Drilling, and Artificial Lift. The Chemicals segment designs, develops, manufactures, packages, and markets specialty chemicals used by oilfield service companies in oil and natural gas well drilling, cementing, stimulation, and production activities

HANS Hansen Natural Corporation, through its subsidiaries, develops, markets, sells, and distributes beverages in the United States and internationally. It offers non-carbonated ready-to-drink iced teas, lemonades, juice cocktails, single-serve juices and fruit beverages, ready-to-drink dairy and coffee drinks, energy drinks, sports drinks, single-serve still water, sparkling juices, and flavored sparkling beverages.

HLF Herbalife Ltd., a network marketing company, sells weight management, nutritional supplement, energy, sports and fitness, and personal care products worldwide

IMAX IMAX Corporation, together with its subsidiaries, operates as an entertainment technology company worldwide. It specializes in digital and film-based motion picture technologies

IBM International Business Machines Corporation (IBM) provides information technology (IT) products and services worldwide. Its Global Technology Services segment provides IT infrastructure and business process services, including strategic outsourcing, process, integrated technology, and maintenance services, as well as technology-based support services.

MA MasterCard Incorporated, together with its subsidiaries, provides transaction processing and related services to customers principally in support of their credit, deposit access, electronic cash and automated teller machine payment card programs, and travelers’ cheque programs. Its payment solutions include payment programs, marketing, product development, technology, processing, and consulting and information services.

RL Ralph Lauren Corporation, together with its subsidiaries, engages in the design, marketing, and distribution of lifestyle products. The company offers men’s, women’s, and children’s clothing; and accessories comprising footwear, eyewear, watches, jewelry, hats, and belts, as well as leather goods, including handbags and luggage

SIMO Silicon Motion Technology Corporation, a fabless semiconductor company, designs, develops, and supplies a portfolio of multimedia data processing, storage, and transfer solutions primarily for consumer electronics applications. The company offers a range of microcontrollers for use in NAND flash memory storage products, including flash memory cards, USB flash drives, and embedded flash and solid state drives.

SWI SolarWinds, Inc. (It’s NOT a solar company) designs, develops, markets, sells, and supports enterprise information technology (IT) infrastructure management software to IT professionals. The company offers free tools, including desktop, laptop, or server-based applications designed for use by individual IT professionals focused on a single network or infrastructure management task;

TSCO Tractor Supply Company operates retail farm and ranch stores in the United States. Its stores offer a selection of merchandise, including equine, pet, and animal products, such as items required for their health, care, growth, and containment; hardware, truck, towing, and tool products; seasonal products, including lawn and garden items, power equipment, gifts, and toys; maintenance products for agricultural and rural use; and work/recreational clothing and footwear.

As you all know, it has been a trying range bound market for months now. YSL 5 suffered from the general market and some nasty stocks downgrades. While we hope the market will turn positive and this list will be our best ever, until the Euro War settles, this is a day to day market and it’s foolish to think otherwise.

Next HGSI Webinar Tuesday Dec 6:

Dr Jeffrey Scott and HGSI user is back to present his refresher in HGSI software and, as importantly, share what he is up to in these challenging markets. Jeffrey always puts a new spin on each Webinar presentation so we encourage new and veteran users to come back for more. And he will provide his usual audience pleasing demonstration of how he is currently managing his own stock portfolio by building nightly watch lists.

You can register for this Free Live Webinar at: www2.gotomeeting.com/register/709221386

Disclaimer: No buy sell recommendations are made for any of the listed stocks. At the time of publishing I personally do not own any of these stocks. You buy any of these woofers and lose your house, your truck, or your show set up don’t come whining to me!


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Positions

Hopefully Longer term positions.

Whipsaw - Just like that and for reasons listed above our longer term Outlook has changed back to NEURTAL. So must our positions.

EUO (double short the Euro currency)   1/2 position Bought at 18.60. Selling this position.

Trades/Investments Under consideration-

  • APPL (long) AMZN (short) hedge trade.
  • GLD or DGP (double long gold)

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Longer Term Outlook

3+ months

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The Fed manipulated US markets and won. Remember some of their tools – the Transparent QE #1 & #2 and the secret loans revealed yesterday. The question is can the Fed and its agents (ECB, IMF governments/institutions who don’t want a messy EURO meltdown) do the same on a more global scale?

We’ll see.

The games afoot – But for now yesterday’s transparent Fed salvo – a giant worldwide equity rally – sure makes every investor remember four words -

Don’t Fight The Fed

Therefore,  upgrading to

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NEUTRAL

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Investors411 has 5 different 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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