March 06
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Sunday, April 09, 2006

Profits, Politics, and Protection



Profits, Politics, and Protection
By Doctrader.com

Starting on Monday, Americans will find out how much illegal immigration will cost businesses in profits, who will be held politically accountable, and how much it will cost for real border protection.
The Market Media Matrix dictates that all activities revolve around producing a profit. The “Market” is all forms of businesses and profits. The “Media” dictates how you should “think and feel” about businesses and events. The “Matrix” is created out of the mass consciousness of people who are not free, logical thinkers.” The Market-Media has created the “Matrix Reality”. When I talk to people about the high rates of taxes they just shrug their shoulders and say, “what can we do about it?” They are living their lives out in quiet desperation not realizing that they have the power to hold the politicians feet to the fire and change the “Matrix.” Due to political correctness, the false Market Media Matrix reality of “Generation X” has increased the children’s confidence and self assurances without any evidence of competency with the rest of the industrial nations.

Profits:
A profit at any cost is the American business motto, right? You can only judge a tree by the fruits it bears. There are many examples and antidotal evidence offered by the liberal news media about the benefits of illegal immigrants who are doing jobs that no one else would do. What all these stories fail to mention is that most illegal immigrants are making much more than minimum wages. The average person still believes that illegal immigrants are picking strawberries and cabbages for less than minimum wages. Illegal immigrants are being used for high paying skilled jobs, such as carpentry and masonry, landscaping, and un-skilled factory work. Which according to an immigrant advocate are averaging $15 per hour! These are the jobs everyone would want not just an illegal immigrant. In all business the largest cost factor is labor. So, given the choice of hiring an American or an illegal immigrant the businesses will hire those who will work for less money. Choosing the lower labor cost has depressed all American wage earners and increased corporation’s profits. Since it is not the businesses’ job to investigate an employee’s legal citizen status businesses can in spirit of the law and the letter of the law hire just about anyone with proper paperwork. This leads to greasing the political palms to keep the charade up of guest workers, undocumented workers and a whole host of politically correct names.

Politics:
Years ago, back in the 1980’s when I was in college I had to produce papers that I was an American citizen. Being a fan of the World War II movies I can hear in my mind the Gestapo saying, “Papers! Papers please. Show us your papers!”. When in the 1980’s the requirement of verifying citizenship was increased from a mere social security card or green card I was not a fan. I could not figure out why I had to show papers which could easily be stolen, copied, or forged and sold for a profit to illegal aliens. It would have been much simpler for the illegal immigrants to produce a “green card” allowing them to work here. The politics of producing profits was conditioning us, the law abiding American, to carry personal identification papers. The Pavlov Conditioning effects of the Market Medial Matrix created political power and profits to the politicians who supported the law.

Flash forward twenty (20) years and we have an invading army within our borders destroying our language and culture.

After 9/11 the first act of congress was to nationalize airline security by creating another political agency to “protect the American people” from hijacking. Meanwhile, the borders were left largely unguarded! The first step that should have been taken was to close the borders and not leave them wide open. This demonstrates the political incompetence of our politicians, both Democrat and Republican. Or, was it a calculated risk to gain the fast growing minority’s votes at the expense of the complacent tax burdened American voters?

The politicians never act until there is a crisis situation. They “come to the rescue” by enacting “knee-jerk public opinion polls” to make their constituents feel better Ben Franklin said, “They that can give up essential liberty to purchase a little temporary safety deserve neither liberty nor safety.” We have been fooled again with the help of the Market Media Matrix. The immigration laws have not been enforced because of the large profit potential by employing illegal immigrants without the protection of the Labor Relation Laws. Liberal politicians would like for you to believe that every illegal immigrant is doing a job that no American would like to do. Never mind they are placing illegal immigrants in potentially abusive situations. Not only are the politicians failing to protect the immigrants they are failing to protect Americans by allowing open borders.

Let’s look at some simple numbers for a reality check.

If there are 15 million illegal immigrants within our country working hard and paying taxes “are we to believe that there are not deviants amount them”? “The Market Media Matrix dictates that all poor people are hard-working and honest“. Unfortunately, the Market Media Matrix reality bubble bursts with FBI statistics.

If we take the normal distribution of deviate behavior of the US population we know that at least 1% will have criminal tendencies ranging from child molesters to murders. If 99% of the illegal immigrants are law abiding and 1% are criminals. How much are these criminals costing us? The 1% represents 150,000 potential criminals who have to be caught, prosecuted, and incarcerated. The cost to the American tax payers include educating illegal immigrant’s children, welfare, Medicaid, Food Stamps, personal injuries, auto accidents, social security fraud, and a host of other expenses.

Protection:
Congress has failed to protect and uphold their oath of office. Congress should be recalled by the American people to hold their feet to the fire for allowing profits to come before this nation’s protection.

The first duties of the congressmen are to protect and preserve the Constitution from all enemies, foreign and domestic. Last year there were 80 different nationalities of illegal immigrants were caught crossing the border from Mexico along with illegal immigrants. This undoubtedly is the greatest of security risk we have ever faced in our nation’s history. Yet, the Market Media Matrix has glossed over this major security flaw.

The first reasonable act of congress during a time of war should be to secure the borders. But in typical knee-jerk reaction they have created another useless government agency to help the airline industry.

Profits come first in America at the expense of protection. They have created the Homeland Security Agency and the TSA to protect Americans. These agencies provide very little protection against the massive open border policies which have been in place for the last 20 years. Congress has been complacently incompetent by incumbency. Congress’ complacency has been caused by voter’s incompetence repeatedly returning 95% of the politicians to office year-after-year. Through the help of the Market Media Matrix conditioning the average American by polarizing the population with stereotypical one-line sound bites. They include rich vs. poor, Republican vs. Democrat, White vs. Black, etc…grabs the attention of the average adult reading at a 5th grade level.

During last week’s protest march for illegal immigrants I witnessed the silent invasion of our country’s borders by a foreign nation. Seeing all the Mexican flags paraded throughout our streets should sound the Paul Revere Alarm. There is nothing more stirring to the American flag being raised on Iwo Jima by the marines who liberated the island from Japan during World War II. The spirit of those who fought World War II is gone today. The only worries of the Baby-boomer generation is how much profit they are going to make on their pension plans, homes, and their stock portfolios.
Congress should not make any new laws. They need to follow those already in place.

The first step is having the guts to close the borders, enforce the immigration laws, and build a secure border. The next step should be to determine who and where illegal immigrants are. Once that is determined these people should be added to the waiting list of those who are legally petitioning to enter the US.

Protection of our borders should come first over politics and profits for corporations.

God Bless

Doc

Monday, March 27, 2006

Bernanke: Batter UP!

Bernanke: Batter UP!

The market anticipates the next two Federal Reserves meetings with the new Federal Reserve Chairman, Ben Bernanke to end raising interest rates. The recent stock market rise to 5 year highs despite higher inflation may continue with momentum players driving the Dow Jones to new historic highs. This same scenario happened in the early 70’s with rising inflation boosting the Dow Jones Industrial averages to new highs breaking the 1000 point barrier. The S&P 500 index was in it’s infancy as a broad diversified hedging instrument. The new S & P 500 index marched to new highs, despite the Dow Jones Index’s trading range from 400 points to 1000 points over previous 10 years from 1966 to 1976. The short term high of the Dow Jones breaking out of this trading range marked the rising tide of inflation. Meanwhile, the S & P 500 reached its high in 1973 only to have a major correction when the Dow Jones Index began its correction. When both of these indexes began to correct, the long term investors suffered a 40% loss, which would take another 10 years to recover to new highs. History is repeating itself in today’s market with the Russell 2000 index making new all time highs while the Dow may reach a temporary new historic high of 12455.


The interesting note about the Federal Reserve Chairman Bernanke is his lack of experience in a leadership role. The logical candidate for the Federal Reserve Chairmanship should have been Vice Chairman Roger W. Ferguson. He has submitted his resignation last month. Dr. Roger Ferguson has been at the Vice Chairman position longer than Dr. Bernanke has been a member of the Federal Reserve.

I can only speculate why Dr. Ferguson was not chosen over Dr. Bernanke, but there are only 3 logical conclusions why Dr. Ferguson was not selected.
  • The first reason is Dr. Ferguson’s political views. Whereas Dr. Bernanke resigned his position as a Federal Reserve member to serve on the President Bush’s economic advisor from June 2005 to January 2006. The Federal Reserve Chairmanship should not be tied to political payoffs. Is this another Presidential Mistake by appointing someone with obvious political ties?
  • Second, maybe Dr. Ferguson was asked to serve as chairman of the Federal Reserve, but declined for various reasons; maybe the economy’s outlook is not as great as the market media matrix is saying.
  • Third, Dr. Ferguson is Black, and if the economy fails, like the 70’s, he did not want provide convenient racial stereotype.


The market media matrix has a “cookie cutter” stereotype of “white businessmen” who have failed or involved in criminal activity. Remember, Fannie Mae and Freddie Mac scandals, how many pictures of the President of Fannie Mae or Freddie Mac has you seen on television? I know one of the two are black, but can’t find the other one’s picture. Can you find their pictures on the internet? Yet, the “cookie cutter” market media matrix shows numerous pictures of those “white guys” like Ken Lay, Frank Quattrone, Bernie Evers, etc… just search for “stock scandals” and you will see numerous pictures of white guys” being caught.


The market media matrix wants you to believe that only “white guys” are

  • Smart enough to commit white collar crime.
  • The Democratic Party’s stereotype of “greedy corporations vs. working class”.


Now there are many black CEO’s in the corporate world, but if the market media matrix publicizes this information, it would ruin the Democratic Party’s racial inequality stereotype.

So, what will Dr. Bernanke when he takes his place at home plate? Will he hit a single or a double? In my opinion he should hit at least a double, meaning a ½ point rate hike and then tell everyone in a transparent move that he will wait until the August meeting to see the effects. His best option would be to set a target for the Federal Reserve’s interest rates until the home buying season is off to a good start. The biggest problem I have always had with the Federal Reserve’s policy was that it was too slow and they have always over corrected when trying to tame inflation. Their slow and methodical approach does not work with human behavior, especially when dealing with irrational stock gamblers. Unfortunately, Greenspan has left Bernanke a tough act to follow, because the bases are loaded with 15 rate hikes already. Even if Bernanke tried to hit only a single, the bond gamblers may have committed errors by their complacency with an inverted bond yield. A simple base hit could clear the bases! Greenspan definitely left the game in time after loading the bases and brining in an un-tested designated hitter. This inning is ending, and the bond gamblers want to close this inning without “window dressing” on the stock market gamblers. If the bond gamblers have errors during this week, the stock market gambles will pay the price during the next inning.

God Bless
Doc












Doc's Harmonic stock Clock is intended for stocks, options, futures, commodities, and currencies trading.

  • This site should be used for Educational purposes only.
  • No advice is given. No recommendations given.
  • You are considered to be over 18 years old.


Doctraders Harmonic Stock Clock is based on technical market indicators which may predict short term and long term market trend reversals.

Doctrader is not an investment adviser but has been involved in the markets since 1985.

No system of trading can prevent losses, you should do your own "due diligence" when determining the suitability of the information contained within this or other websites mentioned in this blog.

Use all Information on this site at your own risk.

God Bless

Doctrader

Friday, February 24, 2006

The Feds Liquidity Trap Part II, Inflation or Deflation?

The Feds Liquidity Trap Part II, Inflation or Deflation?

The market is walking a fine line between higher inflation and a depression. The liquidly trap that the Federal Reserve has created with the housing market will resolve by the end of this year. On the other side of the line is a 1930’s depression era recession which could last beyond the retirement years of the “baby boomers. The depression era threat is real and the new Fed Chairman, Ben Bernanke, has studied the depression era as a hobby. His recommendations for curing the depression earned him the nickname, “helicopter Ben”, since his recommendations are to drop money from helicopters to spur economic growth in face of a depression. But first, he will have to tighten monetary supply before inflation sparks a Jimmy Carter economy. The wild fires of inflation in the housing market has spread a temporary wealth effect among unsuspecting long term stock holders. The next few months will determine if there is inflation or deflation within the economy. The severity of the housing bubble collapse will determined the next phase of inflation or deflation. Even Greenspan issued a warning last year,
Alan Greenspan just said in his speech to National Association for Business Economics on September 27, 2005, '..history cautions that extended periods of low concern about credit risk have invariably been followed by reversal, with an attendant fall in the prices of risky assets. Such developments apparently reflect not only market dynamics but also the all-too-evident alternating and infectious bouts of human euphoria and distress and the instability they engender.'
Remembering 2001, businesses were spending furiously on R&D and building factories. Businesses always have an incentive to overbuild because any losses can be offset in later years if they are wrong about economic conditions with one time charge write offs. The Chip manufactures had $2 Billion dollars invested all over the world with building new facilities and they were completely blindsided by the falling prices of chips in the coming years. The same thing has happened before in the home builders, who have a notorious reputation of overbuilding their markets. Similarly homebuilders are continuing building houses at a furious pace despite the length of time for the average home being on the market, now over 5 months. Meanwhile, corporate insiders are selling their company’s stock at accelerated levels. Others insiders are moving nearly 1 billion dollars a day to off shore bank accounts according to trim tabs.com.The inverted yield curve is an ominous sign and should be the signal flare for everyone to lock in profits and move money into a cash position. You can buy a short term (2-3 months) treasury bill/bond that will pay a higher interest rate than 30 year bond! This is a clear sign that something is about to change, very drastically. I explained the global financial pecking order of the financial market as Forex, commodities, bonds, and lastly stock market where the effects of inflation or deflation can be measured.
The first stages of inflation have happened with the devaluation of the U.S. Dollar. The second stage is occurring now with inflating commodity prices. The third stage will begin over the next 3 months by inflating long term bond yields. Lastly, the stock market will begin to feel the effects of inflation by October of this year. I hope you are prepared for the next coming bear market.
If you remember 2001, just before the bubble popped, there were several wild swings in market valuations before the final collapse. I warned members of the yahoo group about the coming collapse July and August of 2001. So the inevitable market cycle returns to The Fed has a Six Shooter Only posted on August 21, 2001. How many interest rate hikes have we had over the last year?

6 year market performance summary

The Dow Jones Index from Jan 2000 is down -4.5%
The S&P 500 Index is down - 11%
The NASDAQ Index is down -42%
The U.S. Dollar Index is down -18%
The SOX Index measuring computer chip manufactures - 30%
The Oil Service Index is up 128%
The Gold Index is up 98$
The Commodity Research Bureau Index is up 56%
The Russell 2000 small cap Index is up 46%

The special price will only last 4 more days until the end of the month. I will personally annotate 3 of your charts when you purchase the Harmonic Stock Clock book. Time is critical if you are a long term investor. The month of March has not been kind to the “buy and hold” investors. This is the longest cyclical bull market in history without a 10% correction, since rebounding off the lows in October lows in 2002. Yet, the market has failed to make new all time high over the last 6 years. I believe that programmed computerized trading has been the culprit of this sustained trading range. If I am correct, then the correction could have far reaching effects, back to the lows of 2002.

The market will have valuation gyrations and you can capitalize on these swings if you have a game plan. The Harmonic Stock Clock will give you clear signals when to take profits.
The last 4 days only, over $600 worth of information at this low price.
God Bless
Doc

http://www.harmonicstockclock.com/
http://www.doctrader.com/
http://doctrader.blogspot.com/
http://9aheadofthecurver.blogspot.com/






Doc's Harmonic stock Clock is intended for stocks, options, futures, commodities, and currencies trading.
This site should be used for Educational purposes only.
No advice is given. No recommendations given.
You are considered to be over 18 years old.
Doctraders Harmonic Stock Clock is based on technical market indicators which may predict short term and long term market trend reversals. Doctrader is not an investment adviser but has been involved in the markets since 1985. No system of trading or investing can prevent losses, you should do your own "due diligence" when determining the suitability of the information contained within this or other websites mentioned in this blog.

Use all Information on this site at your own risk.

God Bless

Doctrader

Tuesday, February 21, 2006

Doctrader Harmonic Stock Clock Two Week Market Forecast

Doctrader Harmonic Stock Clock Two Week Market Forecast

These last two weeks have been trying times for long term investors
. Meanwhile, short term traders have been very profitable by using the Harmonic Stock Clock signal lines for quick gains. The total number of shares trading above their 200 day moving average has held steady around 65% of the stocks which are trading on the New York Stock Exchange. The lows of this key (t2107 in telechart2000) indicator reached 40% in October of last year. Programmed trading caused by foreign investors buying U.S. equities cause the majority of these indices to move higher. The computerized programmed trading is designed to keep the well publicized indexes higher while taking profits on stocks within the index. The Russell 2000 Index is composed of 2000 smaller capitalized companies. There are 500 stocks within the Russell 2000 Index which have 80% of their shares owned by institutions. The top 1200 stocks of the Russell 2000 Index have over 50% of their shares owned by institutions. The derivatives markets are controlling the futures market and commodity prices with short term computerized programmed trading, limiting individual investors’ profits. These derivative markets keep a tight reign on the trading range of prices during the day. Despite theses restrictions and the large volumes of computerized programmed trading, the Harmonic Stock Clock has allowed users to profit with these short term moves.

Harmonic Stock Market Forecast

If price targets are reached within the next two weeks, a new target prices will be posted for these important indices. All price ranges are based upon the Harmonic Stock Clock Signal Lines, using a combination of technical analysis and my proprietary signal, Harmonic Heartbeatfor short term and long term price targets. The Harmonic Stock Clock Signal lines can be applied to stocks, futures, commodities, and currencies markets. You can see the support and resistance of my harmonic stock clock signal lines on these indices as a proxy to your trading vehicles. If you would like to know more about the Harmonic Stock Clock trading and investing, you can visit my website at: http://www.doctrader.comand www. harmonicstockclock.com.

Previous post:

Dow plus or minus 400 target points,
Start range of the Dow Jones Index: 10862, lows 10737, high 11131, total actual points 394 points.

New Dow Jones Index Forecast: target points 474 High range 11173, low range 10702

NASDAQ plus or minus 150 points, start range of the NASDAQ: 2311, .lows range 2232

High range 2294. Actual range 79 points
New NASDAQ Forecast: High range 2308, low range 2227 total points 81

Commodity CRB Index plus or minus 32 points, start high range 350, lows 319, actual total 31 points

New CRB Index Forecast High range 346.88 low range 315.67 total points 31


Sp500 plus or minus 55 points, start 1280, high range 1289 lows range 1253 total points actual 36 points.


New S&P 500 Forecast: High range 1289, low range 1253 total points 36 points


U.S. Dollar plus or minus 3 points, start 88.91, high range 91.01 total points 2.1

New U. S. Dollar Forecast: High range 91.72, low range 88.53 total points 3.19


Russ2k plus or minus 72 points, starting range 733, high trading range 735, low trading range 708, actual 25 points.

New Russell 2000 Index Forecast: High range 737, low range704, total points 33.


Gold Index plus or minus 104 points, start range 571, High range 575 lows 534, actual 41 points.

New Gold Index Forecast: High range 570, low range 530 total points 40.

Oil Service Index plus or minus 55 points, start 221, and High range 223, Low range
188 actual total points 35

New Oil Service Index Forecast: High range 219.41 low range 183.09 total point range 36



God Bless

Doc


Doc's Harmonic stock Clock is intended for stocks, options, futures, commodities, and currencies trading.
This site should be used for Educational purposes only.
No advice is given. No recommendations given.
You are considered to be over 18 years old.
Doctraders Harmonic Stock Clock is based on technical market indicators which may predict short term and long term market trend reversals. Doctrader is not an investment adviser but has been involved in the markets since 1985. No system of trading or investing can prevent losses, you should do your own "due diligence" when determining the suitability of the information contained within this or other websites mentioned in this blog.

Use all Information on this site at your own risk.

God Bless

Doctrader

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