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Investment Grin Of The Day

10 signs you think about your portfolio too much

  1. You gave your broker a gift on the fifth anniversary of the day you opened your brokerage account, but forgot to give your wife anything on your wedding anniversary.
  2. You tell your children they can’t go to college because you are convinced you can make another 15% on their education accounts when the market turns around.
  3. You go camping, a bear attacks you, and your insurance has run out. You have a choice between selling your Microsoft stock or paying for an operation to save your leg. You choose the stock.
  4. When asked to speak at your graduation, you recited line-for-line Gordon Gekko’s “Greed is Good” speech.
  5. You miss your business partner’s funeral because Cisco is releasing its earnings report… after all, if they were still alive, they would want you to carry on with business as usual.
  6. You make your sixteen year old daughter get a job at a little-known manufacturing company in the hopes she will hear something and give you valuable insider trading tips.
  7. After a company has a disappointing quarter, you throw all of their products out of your house in anger and call your extended family, demanding they do the same.
  8. The Dow Jones drops 10% or more, you demand your family skip one meal a day so you can quickly raise cash to buy stock at the new, cheap levels.
  9. You wander the house on Saturday and Sunday because you have nothing to do. Every hour, on the hour, you loudly announce to the house the time remaining until the Japanese markets open.
  10. Your broker has issued a restraining order.

Stock Market Update. March 26th, 2014. InvestWithAlex.com

z32

A volatile day with the Dow Jones ending the day down 99 points (-0.60%) and the Nasdaq down 61 points (-1.43%)

In short, the market continues to perform as per our forecast (available in our subscriber section). While the Nasdaq continues to underperform, the DOW remains only 300 points away from it’s all time high. Looking at various indicators, the Nasdaq and the Biotech sector remain oversold and due for a bounce. In fact, the Nasdaq left a gap around 4260 that it is likely to close soon. 

I believe such bounce will occur over the next few days. Please note, a slew of negative opinions coming out over the last few days. It is expected from this blog, but not from the mainstream media. I believe the overall psychological perception is changing as well. While it bodes well over the short-term, indicating a bounce, it’s a big problem going forward. 

With that said, as we have been preaching on this site for some time, the bear market of 2014-2017 is just around the corner. If you would be interested in learning exactly when this bear market will start (to the day) and it’s internal composition, please Click Here. 

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Stock Market Update. March 26th, 2014. InvestWithAlex.com Google

Do Foreign Owned Assets Play An Important Role?

Foreign-owned assets in the US hit an all time high of $26.54 Trillion at the end of 2013. Most of the gains came in the form of asset appreciation as opposed to direct capital inflows.  To be honest with you, this is an irrelevant measure. It is simply indicative of what the US Stock market reflects. Overvaluation, speculation, massive credit expansion and credit mechanism dilution by the FED. At the end of the day it will move up or down in conjunction with the US stock market and the US Economy. 

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Do Foreign Owned Assets Play An Important Role?  Google

WSJ Reports: Foreign Investment in U.S. Hits New Record

Foreign investment in the U.S. hit a fresh record in the final quarter of 2013 as rising stock prices boosted the value of American assets, according to figures released Wednesday.

The value of foreign investment in the U.S. hit $26.54 trillion the fourth quarter, up $777.8 billion from the previous quarter and far surpassing a $372.1 billion increase in U.S. investments abroad, the Commerce Department’s Bureau of Economic Analysis said. Adjusting for inflation, the value of foreign investment surpassed the previous record in 2011 and is at the highest level since the data were first collected in 1976.

Reuters

The quarterly report showed foreign investors and companies playing an expanding role in U.S. markets. The development has worried some economists, because it makes the U.S. more vulnerable to major shifts in the global economy. But it also could show strengthening confidence in the American economy.

The BEA said most of the quarterly increases were based on rising asset prices, rather than investors plowing more cash into markets. In that period, the Dow Jones Industrial Average rose by around 8% to new highs, buoyed by growing optimism about the U.S. economic outlook.

U.S. investments overseas were tempered by lingering concerns about Europe’s economic recovery and worries over tapering growth in large emerging markets.

China To The USA Military: Get The F*#& Out Of Asia

According to Pentagon-sponsored study, China is waging a “Three Way” political warfare against the United States as part of a strategy to drive the U.S. military out of Asia and control seas near its coasts. (read full article below). This should not come as surprise to the readers of this blog. Developments outlined in This Report are playing out just as predicted. China views itself as a superpower. It’s recent and massive military expenditure are designed specifically to drive the US out of the region.

With China and Russia forming a military alliance over the next decade, this will be hard nut to crack. But not to worry, as President Obama stated yesterday “Russia is just a regional power”. Never underestimate your enemies Mr. President.  Lesson most often learned the hard way throughout history. 

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China To The USA Military: Get The F*#& Out Of Asia  Google

 

Warfare Three Ways

China is waging political warfare against the United States as part of a strategy to drive the U.S. military out of Asia and control seas near its coasts, according to a Pentagon-sponsored study.

A defense contractor report produced for the Office of Net Assessment, the Pentagon’s think tank on future warfare, describes in detail China’s “Three Warfares” as psychological, media, and legal operations. They represent an asymmetric “military technology” that is a surrogate for conflict involving nuclear and conventional weapons.

The unclassified 566-page report warns that the U.S. government and the military lack effective tools for countering the non-kinetic warfare methods, and notes that U.S. military academies do not teach future military leaders about the Chinese use of unconventional warfare. It urges greater efforts to understand the threat and adopt steps to counter it.

The report highlights China’s use of the Three Warfares in various disputes, including dangerous encounters between U.S. and Chinese warships; the crisis over the 2001 mid-air collision between a U.S. EP-3E surveillance plane and a Chinese jet; and China’s growing aggressiveness in various maritime disputes in the South China and East China Seas.

“The Three Warfares is a dynamic three dimensional war-fighting process that constitutes war by other means,” said Cambridge University professor Stefan Halper, who directed the study. “It is China’s weapon of choice in the South China Sea.”

Seven other China specialists, including former Reagan Pentagon policymaker Michael Pillsbury, contributed to the study. A copy of the assessment was obtained by the Washington Free Beacon. Disclosure of the report is unusual as most studies produced for the Office of Net Assessment are withheld from public release.

The May 2013 report was written before the dangerous near collision in the South China Sea last December between the guided missile cruiser USS Cowpens and a Chinese naval vessel. Senior defense officials said the incident could have led to a larger military “miscalculation” between the two nations.

Chinese state media falsely blamed the United States for the incident and falsely asserted that it had declared a no-sail zone prior to the Dec. 5 encounter. The zone was imposed after that date.

According to the final Pentagon report, China’s use of Three Warfares is based on the notion that the modern information age has rendered nuclear weapons unusable and conventional conflict too problematic for achieving political goals. China’s goals are to acquire resources, influence, and territory and to project national will.

“China’s Three Warfares [are] designed to counter U.S. power projection,” the report says. “The United States is one of four key audiences targeted by the campaign, as part of China’s broader military strategy of ‘anti-access/area denial’ in the South China Sea.”

The Pentagon regards China’s high-technology arms, such as anti-satellite missiles and cyber warfare capabilities, as arms designed to prevent the U.S. military from entering the region or operating freely there.

The study concludes that in the decade ahead China will employ unconventional warfare techniques on issues ranging from the Senkaku Islands dispute in northeast Asia to the disputed Paracels in the South China Sea.

For the United States, the Three Warfares seek to curtail U.S. power projection in Asia that is needed to support allies, such as Japan and South Korea, and to assure freedom of navigation by attempting to set terms for allowing U.S. access to the region.

The use of psychological, media, and legal attacks by China is part of an effort to raise “doubts about the legitimacy of the U.S. presence.”

The use of the techniques threatens to limit U.S. power projection in the region through influence operations that “diminish or rupture U.S. ties with the South China Sea littoral states and deter governments from providing forward basing facilities or other support,” the report says.

Another goal of the Chinese is to limit U.S. surveillance operations through harassment of aircraft and ships and to try and restrict routine U.S. Navy deployments.

China is also using the Three Warfares to facilitate its military expansion and global reach, and to secure sea-lanes needed to transport vitally needed oil from the Middle East.

The Pentagon study urged the development of effective countermeasures to Beijing’s psychological, legal, and media warfare efforts.

They include forceful legal action to challenge China’s so-called “lawfare” initiatives, high profile statements of U.S. security support for states in the region, and expanded support for regional political forums.

Militarily, the United States should continue reconnaissance missions by U.S. ships and aircraft and protect them with force protection weapons to deter harassment or attack. Clear rules of engagement should be developed to prevent a recurrence of the 2001 EP-3E incident.

Increased naval exercises and more “freedom of navigation” exercises also should be held within China’s exclusive economic zones in the region to counter Beijing’s claims in disputed waters.

The report also calls for bolstering “public diplomacy” campaigns in Asia, using targeted investment and development in the region, and expanding military talks and exchanges.

The Pentagon defines psychological warfare as efforts to influence or disrupt an enemy’s decision-making capabilities, to create doubts, foment anti-leadership sentiments, and deceive opponents.

Psychological warfare includes diplomatic pressure, rumors, false narratives, and harassment to “express displeasure, assert hegemony, and convey threats,” the report said.

For example, China’s economy has been used to threaten the United States with the sale of its large U.S. debt holdings, and state-controlled Chinese businesses have pressured U.S. businesses in China. Boycotts, restrictions on critical exports, such as rare earth minerals, and threats to use predatory trade practices are other Chinese soft warfare means.

For media warfare, also known as public opinion warfare, the Chinese use constant activities to influence perceptions and attitudes.

“It leverages all instruments that inform and influence public opinion including films, television programs, books, the internet, and the global media network (particularly Xinhua and CCTV) and is undertaken nationally by the [People’s Liberation Army], locally by the People’s Armed Police, and is directed against domestic populations in target countries,” the report said.

Hollywood has also been influenced by threats from the Chinese government, which threatens to block market access in an effort to pressure movie studios to avoid themes Beijing opposes.

Also, China’s state-controlled television network CCTV maintains a full time White House reporter who regularly joins the rotating media pool, a position that could permit influencing U.S. media on China through pool reports.

The goal of media warfare is to weaken an enemy’s will to fight, alter its awareness, and assist psychological and legal warfare goals.

Legal warfare exploits laws to achieve political or commercial objectives.

China has used lawfare to bolster its territorial claims. An example was the designation of the South China Sea village of Sansha, on the disputed Paracel Islands, as part of Hainan Prefecture. The legal measure sought to extend China’s control far into the South China Sea. Vietnam, Philippines, and other states have claimed the islands.

Tools used in lawfare include domestic laws, international legislation, judicial law, legal pronouncements, and law enforcement. They are often used in combination.

The report warns that the three types of unconventional warfare addressed individually are “manageable” problems, but taken together they challenge traditional U.S. concepts of war.

“Our war colleges and military research traditions emphasize kinetic exchange, the positioning and destruction of assets, and metrics that measure success by kill ratios and infrastructure destruction,” the report said. “By adopting the Three Warfares as an offensive weapon, the Chinese have side-stepped the coda of American military science.”

The use of these warfare techniques allows China to achieve strategic objectives using a new military technology that has not been considered in the past by the West.

To solve the problem, the report recommends setting up a White House office to coordinate countermeasures to the Three Warfares.

“If the Three Warfares is not a ‘game changer,’ it certainly has the capacity to modify the game in substantial ways,” the report said.

Buybacks. Another Nail In The Stock Market Coffin?

Just as human beings, Corporations are irrational when it comes to buying their own shares. Just as individual investors, they tend to accelerate buybacks at the top of the economic/market cycle and slow it down at the bottom. Case and point, corporate buybacks were at $160 Billion at 2007 top and only $20 Billion at 2009 bottom.

Today, in another sign that there won’t be a Cap-Ex boom, corporations are accelerating their buybacks and dividends to the pace unseen since the 2007 top. While most investors will see this as a positive, for me, it is yet another indicator that the market top is in. Or nearly in. When corporations don’t know what to do with their FED induced “funny money” the top is not that far behind. 

It has been our view since about December 31st, 2013 that the market top is in. Our mathematical and timing work continues to confirm that stand. If you would be interested in learning when the next bear market leg will start (to the day) and its internal composition, please Click Here. 

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Buybacks. Another Nail In The Stock Market Coffin?  Google

 

 

WSJ Reports: The Great Buyback Binge of 2013 Will Continue: S&P

U.S. companies bought back stock and paid dividends at a blistering pace last year, a trend that helped propel the stock market’s record-breaking rally. The heavy buying is expected to continue in 2014.

Stock buybacks among S&P 500 companies jumped to $475.6 billion in 2013, up 19% from a year earlier and the highest annual amount since 2007, when companies spent $589.1 billion on buybacks, according to S&P Dow Jones Indices.

In the fourth quarter, buybacks totaled $129.4 billion, up 1% from a quarter earlier.

Combined stock buybacks and cash dividends totaled $214.4 billion in the three months ended Dec. 31, the highest level since a record $233.2 billion were paid out in the fourth quarter of 2007. By comparison, the latest figure is almost three times the $71.8 billion total in the second quarter of 2009, when the economy was in the early stages of rebounding from the financial crisis.

S&P Dow Jones Indices

In returning money to shareholders, companies are tapping into cash piles they have reached record levels in the past few years as companies cut costs and took advantage of low interest rates to borrow funds.

Some 401 companies within the S&P 500 reported buybacks last year, according to Howard Silverblatt, senior earnings analyst at S&P Dow Jones Indices, with 339 of them also paying a dividend. He said 196 of those companies spent more cash on dividends than buybacks.

“I expect this trend of greater shareholder return to continue throughout 2014,” Mr. Silverblatt said.

At least at the onset of 2014, however, the pace of buyback authorizations has slowed. U.S. companies authorized $80 billion in stock buybacks last month, a 32% drop from last year’s record-setting amount but also the third-strongest February on record, according to preliminary data compiled recently by Birinyi Associates Inc.

IBMIBM -0.93%AppleAAPL +0.28% and PfizerPFE +1.54% paid out the biggest buybacks in the fourth quarter of last year. All purchased more than $4 billion of stock in the final three months of 2013. Five of the top 10 companies that implemented the biggest buybacks hailed from the tech sector. In addition to IBM and Apple, the other tech companies included Cisco SystemsCSCO +1.01%OracleORCL +2.21% andMicrosoftMSFT -1.02%.

The large payouts played a direct role in boosting investor confidence in a stock-market rally that pushed the S&P 500 up 30% last year. The stock index is slightly higher in 2014.

“Although there are headlines of record setting buybacks programs, the 19.2% increase in buyback expenditures for 2013 only matched the 19.2% average daily stock price increase,” Mr. Silverblatt said. “The average stock price for Q1 2014 is running 21.0% higher than Q1 2013, meaning that a 21% increase in current expenditures is necessary to purchase the same number of shares as last year.”

Buybacks can boost earnings-per-share — a closely watched measure of profitability — by reducing shares outstanding, although some companies use the stock they buy to deliver shares to executives who exercise stock options.

But skeptics deride buybacks. They say the cash could be deployed in a more efficient manner, such as investing in research and development, boosting hiring or buying an existing company. BlackRock Inc. Chief Executive Laurence Fink has been warning lately that buybacks can create quick returns at the expense of long-term investment.

Companies also have a history of buying back shares at the wrong time. At the end of 2007, buyback activity was near record levels just as stocks were in the early stages of a precipitous drop.

Still, investors have rewarded companies that execute buybacks. Firms that heavily repurchase their own shares have seen their stock prices outperform the overall market over both short and long time frames.  The S&P 500 Buyback Index, which measures the 100 stocks with the highest buyback ratios, has outperformed the broad S&P 500 over the past 12 months.

On a total-return basis, the Buyback Index is up 31% over the past year, while the S&P 500 is up 23%. The buyback ratio accounts for the amount of cash paid for common shares over the past four quarters, divided by the market capitalization of the common stock.

But worries have surfaced recently that buybacks may be losing their luster with investors, especially as the market has rallied to new highs. Since Jan. 1, the S&P 500 Buyback Index is up 1.3% on a total-return basis, compared to the S&P 500′s 1.4% gain.

Will China’s Economic Collapse Force A Revolutionary Change?

There is no question that China is in a heap of economic trouble. From massive credit bubble to empty cities, from shadow banking to slowing growth. We have covered it in great detail on this blog over the last couple of months. Plus, there are signs the Chinese bubble economy is starting to unwind with Hang Seng index plunging into an official bear market territory just a few days ago. My question is….

Will the Chinese crisis/collapse be severe enough to force a revolutionary change in China? 

Perhaps some of my Chinese readers can comment on the subject matter. What will happen when the Chinese economy slows down significantly, real estate collapses and tens of millions of Chinese families lose everything? I, for one, believe China might experience a violent (revolutionary) type of a governmental change. While today’s China illuminates the strength of its government, should the financial crisis be severe enough, the change might come faster/sooner than most people believe.  

What do you guys think? 

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Will China’s Economic Collapse Force A Revolutionary Change? Google

ChinasHouseofCards

The Daily Ticker: China heading toward a debt crisis with global ramifications: Banking vet

China’s economic engine appears to be contracting, or at least slowing. Chinese PMI fell to 48.1 in March, an eight-month low, and the index has been below 50 since January. A PMI below 50 indiates a contraction in the manufacturing sector.

Last year Suntech Power, a Chinese solar energy company, defaulted on a $541 million bond followed by Shanghai Chaori Solar failing to make a $14.7 million interest payment on March 7. On March 18, Zhejiang Xingrun Real Estate Company defaulted on a $400 million loan. China is also taking large (and potentially unsustainable) debts in emerging markets prompting investor concern. China’s hard currency debt exposure was $223 billion at the end of 2013, according to Nomura Securities

“China has significantly over-billed and created a significant amount of bad debt,” says Richard Vague, managing partner of Gabriel Investments. “They’ve grown private debt 56% in five years and their private debt levels are 180% or perhaps more.”

So is China looking at a 2008-style crisis with global ramifications?

“It looks to us like at least $2 trillion to 3 trillion in bad loans or suboptimal loans have been created so it’s not a small problem relative to their GDP, or the capital of the banks,” says Vague. But they have the capacity to rein in the problem, “both in terms of the reserves they have and they have capacity in terms of additional borrowing at the central government level.”

Still, says Vague, “It’s going to take no less than a concurrent effort to go in and recapitalize institutions and extend the safety net.”

The best case for China going forward? Significantly lower growth levels, says Vague. And worst case? A banking crisis where things contract and hit the global economy.

Attention: Tech Stocks About To Surge?

With King Digital going public and Facebook’s $2 Billion acquisition, The Daily Ticker asks “Are we on the verge of another tech bubble?”

Idiots. 

On “the verge” implies that today’s valuation are normal and we are about to experience a huge run up, leading to an eventual “bubble”. We are in a massive bubble already. Today. Thanks to the FED and their monetary policy or lack thereof. The valuations are at astronomical levels and today’s active IPO market is a clear indication of that. Further, with our mathematical and timing work clearly predicting a severe bear market and a US recession between 2014-2017, the bubble is about to POP.  

Dumb and Dumber (Screengrab)

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Attention: Tech Stocks About To Surge?  Google

Daily Ticker Are we on the verge of another tech bubble?

Shares of King Digital Entertainment (KING), the mobile game maker of the popular Candy Crush, started  trading today for the very first time but below an IPO price of $22.50 a share which valued the company at  $7.1 billion. In early trading shares were down about 8% at $20.70.

Facebook (FB) announced it’s buying virtual reality firm Oculus VR for $2 billion--$400 million in cash plus stock–just five weeks after it announced a $19 billion acquisition of WhatsApp. Oculus makes virtual reality goggles used to play video games, but Facebook CEO Mark Zuckerberg said Tuesday he plans to expand its platform to include education, medicine and more.

Finally, Box Inc., a cloud storage company, announced Monday plans to raise $250 million through an IPO.Unlike King Digital, which had profits of more than half a billion dollars last year, Box has been operating at a growing deficit despite increasing revenues.

Could we be on the verge of another tech bubble?

“Don’t insult the real bubble of the 1990s,” says Henry Blodget, though he admits “some valuations are breathtaking,” like King’s. Its “numbers are already shrinking,” says Blodget. “I don’t know anyone who plays Candy Crush anymore.”

There are no current numbers for Oculus. Its virtual reality headset is available only as a prototype for developers and not for sale to consumers. “This is as speculative as you can get,” says Blodget. This acquisition is unlike Facebook’s other recent buys: $1 billion for Instagram, a company with 100 million users and $19 billion for WhatsApp with 450 million users (growing at a rate of 1 million users a day).

Most people have never used the Oculus virtual reality headset but those “who have tried it say it’s mind-blowing,” says Blodget. Still, he warns, “there’s a very good chance that this thing is worth zero in two years.”

Bullish Nasdaq Delusion

Most market participants see Nasdaq and IBB distribution over the last 7 days as nothing more than another buying opportunity. Case and point, Chad Morganlander of Stifel’s Washington Crossing Advisors. He isn’t worried, according to him….. 

  • “The P/E (price-to-earnings) multiple for 2014 on the NASDAQ 100 is roughly about 18 times, that’s going off a growth trajectory of earnings of roughly about 17% and revenue growth expectations of roughly 7%. So, this slice of the market, the NASDAQ 100, has the get-up-and-go that justifies the valuation.”
  •  “We think CiscoOracle, and Microsoft with those companies, you see consistent earnings growth,”
  • “You see balance sheets that have a tremendous amount of cash with very little debt. And, also, they have this viability to them that we believe in the coming years will make the markets go higher.”

Big mistake Chad.  You can put your “fundamental” blinders on, but you cannot escape the reality of what is to come over the next few months/years. As a “value oriented fundamental analyst” I thought I would never say this, but in today’s market, fundamentals are irrelevant. They have been distorted by the FED’s credit infusion and cannot be considered valid. Instead, one should concentrate on technical analysis to try and ascertain the future. What technical analysis indicates for the NASDAQ is not good by any measure. 

Yet, you can go even further. As our mathematical and timing work (much more advanced than technical analysis) indicates, the bear market of 2014-2017 is just around the corner. When it starts it will slam the Nasdaq harder than most other indices. If you would like to find out exactly when the bear market will start (to the day) and it’s internal composition, please Click Here.    

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Bullish Nasdaq Delusion  Google

Talking Numbers Writes: This could spell trouble for the tech rally

Some big names in the tech-heavy NASDAQ Composite index are getting smacked around this month.

The hits are being felt by a wide-range of NASDAQ companies. There are the upstarts like Netflix, which lost 17% since the start of March, and Tesla, which is down 10% this month. And there are the Internet giants like Facebook (down 5%) and Google (down 4%). And, the ETF tracking NASDAQ’s biotech companies, the IBB, is down 10% this month as well.

Portfolio manager Chad Morganlander of Stifel’s Washington Crossing Advisors isn’t worried about this month’s decline many of the NASDAQ’s large cap stocks mega cap stocks.

“The P/E (price-to-earnings) multiple for 2014 on the NASDAQ 100 is roughly about 18 times,” says Morganlander about the index of the largest 100 non-financial NASDAQ stocks. “That’s going off a growth trajectory of earnings of roughly about 17% and revenue growth expectations of roughly 7%. So, this slice of the market, the NASDAQ 100, has the get-up-and-go that justifies the valuation.”

Morganlander is particularly optimistic about companies large cap NASDAQ companies like CiscoOracle, and Microsoft. “We think with those companies, you see consistent earnings growth,” says Morganlander.

“You see balance sheets that have a tremendous amount of cash with very little debt. And, also, they have this viability to them that we believe in the coming years will make the markets go higher.”

Talking Numbers contributor Richard Ross, Global Technical Strategist at Auerbach Grayson, believes the technicals are more pessimistic than Morganlander’s fundamental analysis.

Ross sees the fund that tracks the NASDAQ, the PowerShares QQQ, as having traded in an upward-sloping trend channel for the past nine months, with the 100-day moving average serving as its support. However, the QQQ recently showed a rounded top pattern.

“That’s a sign of distribution,” says Ross. “When that distribution comes at the tail-end of a five-year bull market, you want to look out here.”

The QQQ closed at $88.51 on Tuesday. According to Ross, a break below the 100-day moving average, currently at $86.79, means the next support level is at the 200-day moving average, now at $81.55. 

“That’s a significant move down and it could come in a hurry,” says Ross

Shocking Truth: Why The US Chose The Wrong Side In Ukraine/Russia Conflict

Final piece evidence showing that President Obama picked the wrong side in Ukraine/Russia conflict was released on Tuesday.  In it, Ukrainian national security service has put Crimea’s new super hot chief prosecutor Natalia Poklonskaya on its wanted list for unspeakable crimes against Ukraine (see article below). Realizing his mistake President Obama dialed up Putin saying “Sorry bro, I didn’t realize Ukrainians were that crazy”. All was good in the world thereafter.   

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Shocking Truth: Why The US Chose The Wrong Side In Ukraine/Russia Conflict  Google

RT Writes: Crimean chief prosecutor Natalia Poklonskaya ‘wanted’ by Ukraine’s security service

Ukrainian national security service has put Crimea’s chief prosecutor Natalia Poklonskaya on its wanted list. She is charged of taking actions aimed at the violent overthrow of constitutional order and takeover of government power.

Poklonskaya took the office as Crimea defied the coup-imposed government in Kiev and sought independence from Ukraine. After the peninsula joined the Russian Federation, she was appointed as Crimea’s acting chief prosecutor by Russia’s General Prosecutor Yury Chaika.

The Ukrainian National Service for Security and Defense accuse her of violating article 109 of the Criminal Code, which deals with overthrow of the government.

Poklonskaya became somewhat of an internet sensation due you relative youth, attractive appearance and emotional media conferences. A number of anime-style drawings of the official are currency circulation on the web, with many supporters calling her ‘kawaii prosecutor’ after the Japanese term for cuteness.

The now-wanted in Ukraine officer of the law is somewhat irritated with her web popularity, she told the media, because it undermines the serious nature of her job.

Last week the Ukrainian security service said it was investigating 22 alleged cases under Article 109. Seven of the alleged ‘separatists’, as Kiev calls them, are under arrest. Among those charged are several leaders of protests in eastern Ukraine, which defied the new authorities.

 

Image from reddit.com

Image from reddit.com

 

 

Image from reddit.com

Image from reddit.com

 

 

Image from reddit.com

Image from reddit.com

 

Jim Cramer’s Perfect Timing

Last week Jim Cramer said Tesla (TSLA) is the next Apple (AAPL) and issued a buy recommendation. Tesla’s stock promptly went on to lose 8% of its value. Today, Jim is raving about the “undervalued” Blue Chips. Why? Well, because the Dow didn’t sell off last Friday and Monday as Jim’s favorite Nasdaq and IBB did. Duh!!!!

Is Jim right? Does it mean Blue Chips are undervalued? Hell NO. Market action over the last few days is indicative of complex market top formation. It has nothing to do with undervaluation or overvaluation. As I have said so many times before, the bear market of 2014-2017 is just around the corner. The market action and divergences you are seeing today are a clear indication of that. Point being, there is no value left and I would caution you against buying anything. Let alone what Jim suggests. 

If you would like to know exactly when the bear market will start (to the day) and it’s internal composition, please Click Here. 

jim cramer

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Jim Cramer’s Perfect Timing  Google

CNBC Writes:  Cramer: Are these stocks too darn cheap?

Jim Cramer has noticed a remarkable transformation in the market over the last few days. Investors are buying value.

That is, money is going to work in stocks that investors believe are, essentially, too cheap, if the economy is improving.

And in a market that’s been hyper-focused on growth, the “Mad Money” host thinks the shift is remarkable.

“I think this value move may have some real legs,” Cramer said. “The stocks that are attracting buyers are so much cheaper than the average equity that they could rally for days without running into any kind of ceiling.”

What’s likely to rally as value investors snap up bargains? The following stocks were on Jim Cramer’s radar Tuesday March 25, 2014.

Adam Jeffery | CNBC

Caterpillar

Looking at the valuation Cramer said there’s no doubt Caterpillar is cheap relative to the market. “Right now, CAT’s trading at about 14 times earnings estimates. That’s much cheaper than the S&P 500, trading at 17.2 times earnings,” Cramer explained.

Of course, the discount exists for a reason. Caterpillar had been facing serious business challenges. However, Cramer thinks the company’s fortunes may be about to turn. “We know from talking with United Rentals CEO Mike Kneeland that there’s a renaissance in optimism about commercial construction. That’s CAT’s bread and butter. Also, the Fed has suggested the economy is improving. Again, that’s right in Caterpillar’s wheelhouse. And I’m hearing about a revival in trucking. Caterpillar makes engines; they benefit from any kind of rebound in trucking.”

Johnson & Johnson

Like CAT, Johnson & Johnson is trading at a discount to the average stock in the S&P. “Value buyers think that disparity can’t last,” Cramer said. “J&J is the fastest growing major drug company with the best balance sheet of any company in the United States. And CEO Alex Gorsky has talked openly about shaking the company up which should unlock value. Is this the kind of company deserves to trade at a discount to the rest of the market? According to value investors the answer is a resounding ‘no.’ Shares closed more than 2% higher on Tuesday.

IBM

Although Cramer concedes that IBM missed the last quarter, he thinks the relative discount is too substantial given the transformation underway at the company. “It sells for ten times earnings,” he said.

“IBM is rapidly transitioning to the cloud. It’s much more of a software than a hardware play. At ten times earnings with a new cycle coming, it appears value investors just can’t pass up this bargain.”

Microsoft

Microsoft trades at 14 times earnings and yields almost 3% but Cramer thinks value investors could easily send shares higher. “I think the company’s new CEO, Satya Nadella, will usher in a new era of glasnost, where everything is on the table. No sacred cows.” Therefore, at $40, it’s a value.

Schlumberger

Schlumberger is the finest oil service firm in the world with the best technology and the best minds,” Cramer added. However it had been trading at a discount to the S&P.

“That ended today when the company spoke at that Howard Weil conference and gave a tremendous outlook,” Cramer explained. The company’s comments suggested the energy renaissance underway in this country was still in early stages and Schlumberger was positioned to profit as developments unfolded.

Although the stock is no longer cheaper than the S&P average, give the catalysts, Cramer thinks value investors will continue to view it as a bargain.