However, the rational reality cannot hide from the sad performance of General Electric’s (GE) share price.  It is the worst performer within the Dow Jones Index over the last 9 years.  After all, isn’t that what CNBC viewer want, the “long term investor’s point of view.  Well, maybe they have a financial interest in becoming cheerleaders for the Dow Jones Index, since General Electric owns CNBC network. In fact, the worst performing stocks in the Dow Jones Index over the last 9 years, for long term investors, is self explained in this chart.

Is it ironic that none of the CNBC cheerleaders have shown you the actual long term results the Dow Jones Index?  What did you expect?  The never told you it was time to sell, only to buy, buy, buy.  I think their favorite line for morning guests are, ” So, what are you buying now?”  The predictable irrationality good ole boys are only too happy to tell them what they have already bought.  So you will place your orders to buy the stocks they already own.    If you look at the next chart, there are only 10 stocks of the Dow Jones Index which have a positive return over the last 9 years!

Notice the list of stocks in the top 10.  Who would have thought Caterpillar (CAT) would have out performed a technology firm.  I would think that given the furious buying activity within the NASDAQ market, the leaders would be technology stocks.  Someone asked me 9 years ago would the NASDAQ every get back to 5000 points.   I said, sure, around 2018-2020!   I am going to revise that to 2036 for the NASDAQ…. maybe.  Hey, look at the Japanese market, still in the tank from it’s all time highs.  Remember last summer, all of you were complaining about the “greedy oil companies” gouging you at the pump?  I told the complainers, “you had better hope that gas prices rise to $10 a gallon, other wise your 401k plan will be cut by 50%.   Which has more money in it, you gas tank or your 401k plan?  The Fed was trying to create inflation at that time, but they are always behind the curve!  Now they are creating the biggest liquidity trap in the modern  world.

Now the stock market is rebounding only because of the massive government bailouts and those who “day trade” the stock market with programmed trading.  The stock market has been manipulated once again by the “Feds Plunge Protection Team“, which buys stocks and bonds.  Why, just last week, the Treasury issued bonds, which no one wanted.  So the bond were sold to a primary bond dealer…. can anyone guess who’s the dealer?  I bet you a dollar, it was someone who received TARP money!  The Treasury bonds were then sold back to the Federal Reserve in 10 days!   Can you say “Enron?”  Once again, the middle class will pay for the parties for those on Wall Street.

Despite the Irrational Recovery of the stock market, looking at the stock returns on the Dow Jones Index, does not give me hope for the future.   None of the CNBC cheerleader have mention the words “toxic assets”, nor the 9 million mortgage foreclosures.  The commercial real estate collapse has yet to materialize.  Quietly kept under cover as the largest commercial property owners go to the Fed and Treasury to receive bailouts!  You have to understand, all markets are connected easily manipulated.  Everyone is talking about the “Wiemar Republic“, and the causes of hyper-inflation on the economy.  I don’t think we are heading for hyper inflation, but the “Mother of all Depression.”   The economist who are predicting hyper inflation have failed to remember the “baby boomers”, and they are “mad as hell!”    What are the baby boomers going to do?  They were told that if they have invested in a 401k plan, bought a home, maybe a second one at the lake,  they could retire in luxury and travel around the world!  You can bet, Wall Street is laughing all the way to the “Hampton’s” with all they money they have made off the 401k “dumb money.”   The Wall Street insiders call 401k plans “dumb money” because it just keeps pouring in as long as people have jobs.  Some point in time, when people begin to loose their jobs, they will be forced to take some of the “dumb money” out of the 401k plans.   When the baby boomers hit 59 1/2…. there could be massive withdrawals from these plans.  Can you stand another 50% drop in your “long term investment?” Will you be able to work another 20 years before you can retire?

I feel, we have less than 90 days to put a plan together to protect your ass…ets.  The first step will be the hardest for you to take, because it involve learning how to manage your own money, while you still have some.  I am putting the finishing touches on a free DVD to help you get started with the next financial disaster that’s coming.

Please post some comments at the end of this blog.

What financial  information would you like to learn?

Doctrader

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My 401K now barely exists. Where did all that money go? Thats okay, I dont need to retire.

Still, it could have been worse. Remember when they wanted to privatize social security and turn it into a big 401k plan for everyone? Imagine how that would have gone!

Duration : 0:1:33

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1. International Forecaster October 2009 (#9) – Gold, Silver, Economy + More

I have come to realize, no matter how smart you think you are, there is always some boggling politician there to take your profits and make life harder for you and your business. All the good intentions in the world mean nothing if you can’t make a profit. As an American, I never thought i would be witnessing the Death of Capitalism and the rise of Socialism.

All the financial problems we have been facing lately are the direct results of governments interfering with the Free Market Capitalism. Since we have the biggest impact on the world’s economy, comprising only 3% of the world’s population, the world will blame The Next Great and Last Depression on the United States.

However, the world fails to realize that we also provide 25% of the World’s Gross National Production.

The world’s gross national production is estimated at $50 -$60 trillion dollars annually. The United states produces approximately $15-$18 trillion dollars. Given the political slant of the news services and the market media matrix, the first finger pointing will begin during the coming Dow Jones Death Spiral.

Those who have a vested interest in continuing the charade of “free market Capitalism” and those who feel the need for ‘the government” to bail out the financial system. The Market Media Matrix includes all the advertisers on the financial shows who make daily comment on the market, like CNBC.

I can’t tell you how many times I am yelling at the idiots on their shows. The teleprompter news readers are dumber than a box of rocks, unless they steal content from these blogs. You watch, they will be using “Dow Death Spiral” by the end of the week. I love when they use the term “investors!” Investors don’t trade everyday, only wall street day traders! Investors for the most part, just ride the tide up and down in the market like a life boat without a paddle. Now the long term investor is beginning to feel the fear, but not from losing, but for selling before the next big rally! Ironic that the politicians are blaming Wall Street for their greed, but I see the greed on main street everyday. You know what they say when you point your fingers at someone? You have 3 more fingers pointing back at yourself. Everyone is to blame, not just Wall Street!

The Dow is down nearly 30% since last year’s all time highs! That should have given you a clue to sell, but not to the idiots at CNBC! They told you to buy more, then when the market was down 3000 points, Jim Kramer told everyone that was the bottom! Oh, well, no one listens to me or Don Harold.

The people who have lost their jobs, homes, and businesses are shouting for HELP from “the government.” The governments’ response to their drowning constituents; throw them and anchor! One thing you can always count on is the “maximum level of incompetency‘ when dealing with the Government. The rules and regulations imposed by governments in order to protect the people has led to the financial pandemic meltdown. The voice of the people is ignored and the politicians are bagging bags of cash.

Democrats may have caused the banking crisis. check this out as reported by Sean Hannity’s special report. Another excellent source of information is Fox News Special Report, “Saving our economy”.

I hope everyone who reads this blog bailed out of this market when i posted my “Dow Jones Death Spiral” 3 months ago.

I feel what happens on Monday morning will be just the tip of the ice berg hitting the world’s economy like the Titanic! At 2:30, the Dow Futures and U.S. Dollar is down over 2%! Asia and Europe are reeling from the bailout plan passed by the incompetent government

As you drive to work, see how many corporate offices and warehouse have “for lease” signs posted on their buildings. Those buildings were largely funded by insurance companies and pension funds. Those failures will make the sub-prime and Fannie Mae losses look like a drop of water in a ocean.

God Bless

Doctrader

This site should be used for educational and training purposes only.

Doctrader’s Harmonic Stock Clock harmonic market cycles, trading and investing. No advice is given. No recommendations given.

You are considered to be over 18 years old.When trading futures,
currencies, commodities, stocks, and options know the risks!

Use all Information on this site at your own risk.

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The December 19, 2005 edition of Newsweek, an article by Jane Bryant Quinn titled “Investing Goes Back to Basics” includes the following text: “All-in-one funds are also the cure for people who think they can “time” the market by buying stocks when they start to rise and switching to cash before they fall. A new study by the University Of Michigan School Of Business, funded by Towneley Capital Management, throws a wet towel on those dreams.”

Now you have to stop and think about who is funding this study, a capital management company. In case you don’t know this either, the University of Michigan issues a report about consumer confidence on Friday mornings. What you may not know is that the University of Michigan sells the results of this report on Thursday to companies for advance release. When the report is released on Friday mornings, those with advance knowledge have already traded on the information through the futures market. The Market Media Matrix strikes again.

Getting back to the report of market timing versus long term “buy, hold, and hope strategy,” the article written by Jane Bryant Quinn’s says, “If you invested $1 in the market in 1963 and held through 2004, it would have grown to $75, with dividends reinvested“. Wow, I bet you just can’t wait for each dollar you have invested to “grow” to $75 in only 42 years!

The previous statement is called “the bait”, in the bait and switch selling technique. Here comes the switch. “But markets move in spurts. If you happened to miss the 90 best-performing days out of that 42-year span, you’d have earned only $2.70.” Not only is this the switch, but they have include a dire warning that if you try market timing, you will end up broke! My interest was peaked when I saw the 90 best performing days mentioned in the article. So, what this article is saying, you only needed to invest money for 90 days to make your money grow, the other (365 days X 42 years= 15,330) -90 days= 15240 days) 15240 days your money is just sitting there doing nothing.

The true purpose of this study is based in the next statement. “However, if you guessed right to avoid the worst 90 days, you’d have turned $1 into $1,694.” Are you scratching your head now? I guess my mind just works different than most people, because I try to see things logically, so this is what I am thinking.

Choices A, buy, hold, hope for 42 years for 90 good days in the market, results $75.
Choice B, time the market yourself and miss the best 90 performing days, results $2.70
Choice C, use market timing to avoid the worst performing 90 days of the market, results $1694.

Given the choices of A, B, or C, everyone would want choice C. So how does one go about learning how to time the market? The Harmonic Stock Clock uses simple rules to help you do your own market timing for your own stocks. How does the Harmonic Stock Clock help you do this? Look at the sample charts below, you will see the ideal time to buy a stock and the best time to avoid market tops.

Click here if you would like more information concerning the Harmonic Stock Clock

God Bless

Doc

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The definition of program trading does encompasses a range of
portfolio-trading strategies involving the purchase or sale of a
basket of at least 15 stocks with a total value of $1 million or
more. Last week, 50% and the week before 70%, of all the market’s
volume of trades was caused by program trading.
Who are these traders?

I have never seen oil, natural gas, gold, and inflation go higher
without causing a significant drop in the stock market. Just this
week, the Alcalde, Alan Greenspan issued two different warnings in
two separate speeches, which the market ignored.

Why did the market ignore these warnings?
The large fund managers have been controlling this market since 2004
with program trading. Their short sighted focus on next quarter
earnings will cause them to miss the secular bear market that we
have been in for the last 5 years. They, using your money, will
decide when the market moves, and the direction of the market.

Last week trim tabs reported that mutual fund inflows of new money
was on the rise. The news media stock cheerleaders were touting the
positive benefits of the two hurricanes hitting the country. They
brought in guests to proclaim “re-building” efforts would make the
market go higher and the small investor should be investing in ..xyz
company because they were going to make tons of money. After two
weeks of hype, money inflows were positive for mutual funds as
tracked by trim tabs research. Those individuals who put money to
work in the market were rewarded this week, just in time for the
quarterly reports and “window dressing.” It looks like this
September, the market will close on a positive note, but usually
when that happens, there will be hell to pay in October.

Look at what the Chairman said in his remarks to Business and
Economics meeting, “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,”

In a speech to the Mortgage banking assoc, he said,
“The apparent froth in housing markets may have spilled over into
mortgage markets. The dramatic increase in the prevalence of
interest-only loans, as well as the introduction of other, more-
exotic forms of adjustable-rate mortgages, are developments that
bear close scrutiny.”

“These products could be cause for some concern both because they
expose borrowers to more interest-rate and house-price risk than the
standard thirty-year, fixed-rate mortgage and because they are seen
as vehicles that enable marginally qualified, highly leveraged
borrowers to purchase homes at inflated prices. In the event of
widespread cooling in house prices, these borrowers, and the
institutions that service them, could be exposed to significant
losses. “

Greenspan is sounding the warning, only you can take the steps to protect your money by using the harmonic stock clock signals. Over the next few weeks, market timing will be critical with you short and long term goals. If you use the Harmonic Stock Clock signals, you may be able to protect your financial wealth when everyone else is losing theirs.

God Bless

Doc
www.doctrader.com

Ps. There is a possibility of a geopolitical event happening
between October 3rd to 15th.

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