Socialism is Alive and Well in America

Wed Apr 1, 2009 1:59am EST 50

Thanks to Obama mania, we are seeing capitalism disappear before our very eyes. The rest of the world doesn’t want capitalism, and neither does our government. It’s to blame for this financial mess. It’s the dreaded capitalism, stupid.

What’s disconcerting is that Mr. Obama has gained an advantage because of this mess to push his socialist agenda, side with the Europeans, and will secretly abolish capitalism as we know it, all the while smiling and telling you he’s your President, and he’s rooting for the UNC Tarheels.

Last time I checked my copy of the U.S. Constitution, nowhere did it say the President of the United States can seize control of a U.S. business, fire its CEO and effectively run it himself. (Let’s see….remind me again how much business experience these politician/lawyers have?) I don’t care if you think Rick Waggoner is an asshat. That’s why companies have a Board of Directors and shareholders. Let them deal with GM’s future. But oh, I forgot, we’re dealing with the savior, the most popular President in history. And he’s using the arguement that it’s “our money” that he’s safguarding, in order to justify this most egregious breach of capitalism American history has ever seen.

Now comes the G-20 and more global financial regulation. In the future, you’ll probably be going on the IMF website to download your company 10-Ks. The SEC will be a puppet organization with reporting requirements to the IMF (a European-style institution). People think U.S. securities regulation was ineffective, just wait until some non-English speaking body tells Wall Street and corporate America how to run its business. Will Obama cave in? Of course he will. He was born to be a facilitator. Plus, he reads speeches from a teleprompter that are written by other people. It’s all very convenient.

None of this is good for America, capitalism or the stock market. This will not make things better. It will make things worse. Wealth is being redistributed, only to be frittered away in the hands of bureaucrats, both foreign and domestic. More egregiosity.

Socialism has proven to be a failure, yet our government still insists on pursuing it.

You want a depression? You got a depression, Mr. Obama. It’s your baby now.

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Bought FXA @ $69.76

Tue Mar 31, 2009 2:52pm EST 9

……because there’s always a bull market in currencies.

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Walked Away With Over 21%

Mon Mar 30, 2009 11:29am EST 10

Back in cash. Sold all the stocks in Optimal Alpha. Will post details in PPT.

This pullback might be a normal one. Then again, it might be the start of another meltdown. No need to get greedy here, so I’m walking away with a tidy 2-week profit.

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Going for the Brass Ring

Fri Mar 27, 2009 4:53pm EST 3

All in all, the market gave back most of what it gained yesterday, about 2%.

Thankfully, this loss does not even begin to touch the gains I’ve had on the long side of the trades recently. Although I gave up about 8% today on the low-priced Optimal Alpha stocks, I’m still up 25.2% in less than two weeks.

Yes, I probably should have taken the profits today and walked away with a 30% gain, but instead, I intend to press the issue and hold on for bigger gains as long as I’m ahead. Truth be known, most outrageously successful years in the market will come from a handful of trades that will have huge gains in proportion to the rest of your trades. Therefore, while I’m ahead, I will press the matter at hand and go for the brass ring, since Mr. Market is bootstrapping my success right now anyway. Worst case scenario, I will sell out the stocks, netting a 10% gain in less than a month. I can live with that.

Going into this weekend, rest assured that I will take my chances on next week, rolling the dice, and praying for a merciful markup going into the ISM numbers on Wednesday. If it all works out in the end, I’ll have another brass ring.

Enjoy your weekend.

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Russell 1000 Buy Signals

Fri Mar 27, 2009 7:48am EST 5

For those of you who might be looking to buy some of the more established names, the Russell 1000 has 62 stocks on established breakout buy signals, 32 of which were newly established on Thursday. The reason you might want to consider looking at stocks in the Russell 1000 is two-fold. One, for ideas. Two, this is an institutional buyers list, so you can guage the level of interest coming from the big money camp.

The following list of stocks are technical breakout buys based on Point & Figure analysis. You might want to cross reference these with a fundamental opinion and a fundamental score from The PPT before diving head first.

Behold, the list of 32:

CAL, VMC, RHI, NLG, CPN, COF, DPS, KO, HMA, HAR, UTR, HOG, TKR, CMCSA, IAC, APC, TSO, HP, OIS, JOE, ANN, KLAC, VSEA, ADBE, ORCL, SNPS, TRMB, KEX, UNP, UTIW, FII, and TROW.

Here are the other 30 that already have been on breakout buy signals:

FDX, PCP, AAP, AZO, KMX, USB, JEC, NVR, URS, STRA, MON, AXP, MA, AKAM, GOOG, PCLN, PFG, AG, CTCM, CMG, FCX, PXP, RIG, CGM, VMI, BNI, CNW, AMTD, BEN, ICE.

As you can see, there’s a pretty good cross-section of industry sectors here.

Also, there are 94 other stocks that have not made it to the “breakout buy” list, but are showing positive signs of strength.

I also looked at the Russell 1000 from a momentum perspective.

4.5% of the stocks in the index have shown a positive momentum shift on a 5 day basis, and 7.1% of the stocks on a 15 day basis.

10.3% of the stocks in the index have shown a positive momentum shift on a 6 week basis, and 10.0% on a 10 week basis.

And, 9.9% of the stocks in the index have positive momentum on a 4 month basis, and 10.0% on a 6 month basis.

This market does not appear to be overbought from an institutional perspective. There is still a healthy amount of caution out there. Just what the bulls need for this rally to continue.

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Here Comes the Stampede

Thu Mar 26, 2009 11:59pm EST 5

Tomorrow, I’m going to take a hard look at my low-priced flyers, consider locking in profits and start buying growth stocks, using The PPT Screener.

Unbeknownest to many of you, the Proshares Short S&P 500 ETF (SH) has given me the first sell signal in almost a year (4/16/08). SH has been on a buy signal since 06/10/08.

The NYSE Bullish Percent Index increased 3%, to 43% today. There’s still room to run. To put things in perspective, the rally from 11/20/08 to 01/06/09 saw the NYSE Bullish Percent Index top out at 66%.

Start buying stocks if you haven’t been already. Folks, please realize that this rally that started on 3/10 will probably turn out be the only time this year for investors to make money on the long side. So, make the most of it.

You should not be surprised to see the rotation back into stocks in a big way. Believe it.

The bear will be severely maimed, but will not die. Not just yet.

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