Welcome to the Resistance - Investors411

A blog that promotes transparency in democracy & capitalism, and beating the results of the S&P 500

YOUR Stock List #3 has just been Published(see below)

istockphoto_4652283-blue-happy-crowd.jpg

Istockphoto of a happy crowd – Hope you like the New Stock List.

What American’s Want

A previously mentioned CBS poll on Nov 11 clearly showed Americans wanted their elected leaders to focus on jobs & the economy. It wasn’t even close.

  1. 56% Jobs & economy
  2. 14% health care
  3. 4% the deficit
  4. other priorities got less votes.

What does America’s Media focus on? Pat downs at airports & TV show Dancing with The Stars is rigged because Sarah Palin’s daughter is on it.

What does our Congress focus on? Perhaps their focus is important, but what about the #1 Priority – Jobs & the Economy, that is 4 times greater than any other priority?

  • Republican’s – Keeping tax cuts for the rich
  • Democrats – Don’t Ask Don’t Tell legislation

Aside – Watching the financial channel CNBC this AM. The chosen expert commentator is Frederick Mishkin. He’s the former Fed Governor who in the middle of the 2008 financial meltdown quit his post to write a book. The TV is intentionally on mute.

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

Index Percentage Volume
Dow +0.20% down
NASDQ +0.15% down
S&P +0.25% down
Russell 2000 +0.49% -

Technicals, Fundamentals & Analysis

Investors411 record – 5 years of beating benchmark S&P 500

US Stock Markets -

Friday’s move sideways acts as confirmation of Thursday’s big move higher. Short term momentum is with the bulls.

Fundamentally – in the AM on Friday markets absorbed the news about China’s rise in interest rates (to keep growth from growing out of control – we would love to have this problem) The Dow fell @ 50 points on the news and spent the rest of the day recovering.  If the bears ruled then this news would have driven stocks much lower.

Investors411′s mantra has been – High Frequency Traders are dominating the market. Under what used to be normal, the light volume rally of the last three days would have been a sign that it the bears would be back in control today. The rally simply did not have enough bulls to sustain the momentum. However the HFT’s that make up 50 to 80% (probably closer to 80+% yesterday because it was a options expiration Friday that creates the market distortions they use as a basis for trading) dominate.

Therefore, since its Thanksgiving week which has traditionally light trading the HFT’s should dominate even more. = bullish

CAUTIONThis view is contrary to the majority of analysts that I skim each morning before writing Investors411. They see the weak volume behind the three day rally and believe the 3 day bull run will collapse.

Significant Shorter Term Forecasting Indexes

  • The Dollar (USD) [Anything daily price move over +/- 0.50 is significant. Dollar usually moves inversely to stocks] The dollar fell -0.14% After almost a 2 week rally the 3 day trend starting to move down. For stocks = Neutral
  • The Baltic Dry Index (BDI) [measures cost of world trade. Also proxy for China, emerging markets,&  exporting countries]Fell  -0.42% yesterday. Major support recently broken, but rate of decline keeps decreasing = Neutral
  • McClellan Index – (MO) [The rough guideline is over +60 = overbought market = sell positions or short stocks, & -60 = oversold market = buy stocks.] fell to -20.18Neutral

Reading The Tea Leaves -

Our forecasting index have moved from bearish to neutral giving a slight edge in short term momentum to the bulls.

Bottom Line - There’s a decent shot that we can hold onto gains and not fall back below last weeks low. There’s a slightly greater chance we will visit or come close to  the 1130 S&P support level (@6% lower)


Positions

The  Positions Section link to latest & former buys and sells  - These are positions I actually own

(I do manage 6 accounts that have other positions).

  • EEM – (Emerging Markets ETF)
  • UWM – (2x small cap stocks ETF) Bought Friday at 35.78. (5% trailing stop)

Investors & Traders -

Stock List #3 is Published

Both Paul & I spent a lot of time this week going over between 40 & 50 possibilities that YOU sent in or were on the old stock list.  We added a few of our best picks too. There are 15 stocks on the list. You can view the New Stock List by going to the POSITION section of the blog and scrolling down.

  • Our first YOUR Stock List went up @ +24% from 2/11 to 4/20 vs @ 11% for the S&P.
  • Our second YOUR Stock List went up @ +26% from 8/4 to 11/5  vs.  @9% for S&P

One significant reason we’ve been successful in outperforming the S&P 500 is YOUR participation. Some excellent choices were eliminated or narrowly avoided making the list. Reasons for this ranged from having diversity to another stock in the same sector was just a bit better.

Look for Paul Rs always enlightening remarks on stocks and sectors in the comments section of the blog. See POSITION section of blog for lists of potential stocks & ETF’s including “YOUR Stock List.” -

Longer Term Outlook - CAUTIOUSLY BULLISH

AS ALWAYS, DO YOUR OWN RESEARCH BEFORE INVESTING!

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