The Insider Report

Tomorrow by the time many of us wake up, the Greek Parliament will have approved the budget with its mandated austerity cuts or they will have voted it down.  If they vote it down, analysts, pundits, and market players seem universal in their opinion that something very bad and unknown, cataclysmic  and systemic will happen to the global financial system.   That almost certainly means that nothing so terrible as the predicted financial fall out will take place. On the other hand if nothing terrible happens in the days following the no vote, there is a good chance that the Greek … Read more

Fom the Finnancial Times Despite a drop that dragged the S&P 500 as much as 8.2 percent below its three-year high hit in early May, the index held above its 200-day moving average — a major line in the sand as the bulls and bears battle for control of the market. The slide had been telegraphed for weeks and the market’s by-the-book performance — pulling back to a widely followed level — seems too well choreographed for some analysts. “The fact that we went to the 200-day … seems just a little too perfect,” said Marc Pado, U.S. market strategist … Read more

We wanted to know who the best hedge fund managers in the world are. You would think this kind of information is easy to come by. It’s neither easy to come by nor is it free. Except here at HSAX & CO., LLC. In order to get to the bottom of this, we commissioned BarclayHedge, a leading third party independent database provider to create an exclusive comparative analysis report. Our first revelation was and it should come as no surprise; the biggest are not the best. Warren Buffett would be the first to tell you that he could hit the ball … Read more

Consumer confidence is on the decline, employment growth has turned down, the Government is broke, the Dollar is going down the tubes, and government is broken.  And that’s the good news.  Greece is defaulting on its debt, Ireland wants to be next, and the grandaddy of all encumbered beggars, the US seems helpless to mend its ways.  Japan is on the verge of sliding into the sea, the Mideast is one protest away from exploding into oil burning conflagration.  The unmitigated glee of doomsayers and alarmists is beginning to annoy me.  It’s amazing how people can hold themselves out as prognosticators of doom on … Read more

Commissions and transaction costs have plummeted in the last 15 years.  The rationale behind staying put and minimizing transaction costs is not as compelling as it used to be.  Unless there is a catalyst to be in a particular equity, a dividend forthcoming, news headline, general bull market, etc, it doesn’t hurt the average investor to stay on the sidelines if they are worried or uncertain about a position.  Reduce the size of  your position or trade out of it all together.  Trading or investing is a lot about behavioral psychology.   maintaining your confidence is the single most important thing an investor can do.  It’s also … Read more

Being unable to sleep at night. Irritability and irrational behavior. These are all unfortunate consequences of overconcentration of risk. A lot of people will tell you that diversification is the key to success in the market. I disagree. Diversification is key to tolerating the pain. And tolerating the pain is key to emotional indifference and that is the KEY to winning market behavior. The market is a constant psychological tug of rope between the group’s collective dynamic relationship between polar opposite emotions- Fear and Greed.  The tension between these two feelings is the daily pulse of the market.  Selling leads to more selling … Read more

According to Briefing.com this morning Apple may be forming a foundry relationship with Intel. Citigroup is the source of this comment and would review such a relationship as positive for Intel. No kidding. We wrote about this in detail on May 30 providing our reasoning behind this guess. Read the full article here . We also went further to tell you to buy Intel below $21.70 in one of our tweets. I’m not as comfortable though about the price levels for Intel as most market charts have deteriorated so much. Still, this news will be very positive should and when … Read more

I’ve written in the past about how helpful RSI Divergence is.  It’s an osscilator type indicator and is good for finding temporary bottoms and tops in a primary trend.  It is NOT good when the trend has changed and that may be the period we are entering now in the market.   Since I trade on a combination of fundamental and technical measures, I thought it would be critical to review my current holdings.  Only five positions met that description, bullish divergence on both the weekly and daily charts.  They are: SJW SJW Corp Silicon Valley public water utility company yielding … Read more

The S&P 500 200 day moving average is at 1249.09.  That’s also the March low.  There is very little in the way to stop it from reaching this very obvious road sign.  Traders will force the issue.  The question will be can it hold.  There isnt’ any real long-term support at even those levels. We will need stepped up insider buying, M&A, or a rash of stock buy backs and/or dividend increases to offset the perceived lack of government spending.  The end of QE 2 combined with the Republican party’s zeal to curb the budget defecit will decrease any momentum for Government spending.  That’s … Read more

Google weekly charts looks like a buy   Google daily chart looks lilke a buy

  Emerging Markets will have a lower open this week but it is time to buy in these economic hot spots. Singapore, Thailand, Malaysia Equities and Currencies are a must own for all investors. Capital inflows to emerging markets will surpass US$1T in Y 2011 Overall net private capital flows to emerging markets (EMs) this year is projected to exceed US$1T , continuing the upward trend fueled by strong fundamentals of the emerging economies, the Institute of International Finance (IIF) said Wednesday. The level follows a 54% rise of net private capital flows to emerging markets to nearly US$990B in … Read more