I Wanted to get you this article as quickly as I could as it’s HUGE NEWS that could lead to some MAJOR changes. This article is courtesy of Tim Sykes, and I highly recommend jumping on his educational videos asap!

As I wrote a few weeks ago, the failed Trader Monthly magazine editor-in-thief, as several ex-employees refer to him, Randall Lane, has been writing his memoirs these past few months, exploring all the angles of what it’s like to bankrupt not just one but two magazines and deserve the absolute hatred of just about every person I talk to in the financial publishing world.

The guy owes money to nearly half a dozen financial writers and is the subject of one of my most popular blog posts ever.

But as an editor-in-thief who won’t stay down, he’s turned to his latest writing gig at The Daily Beast (along with reviewing NYC’s top restaurants???), he’s resorted to implicating Jim Cramer and his prodigal son Lenny Dykstra in a nasty penny stock promotion scandal in the article below.

Shady Randall Lane claims shady Jim Cramer employee Lenny Dykstra took “$250,000 worth of secretly issued stock—in exchange for recommending that stock to TheStreet.com subscribers” which makes Jim Cramer shady for recommending shady Lenny Dykstra as anything other than a thug (I’ve written about Dykstra too)

Students of my video lessons know this kind of corruption goes on all the time and the beautiful thing is that its predictable enough to be consistently profitable for those who learn to identify it. As Jim Cramer’s ratings and TheStreet.com’s ratings prove, nobody expected much from them anyway, but this is a great example of why I’ll probably NEVER have anyone else writing on my site–it’s just too easy to take a big wad of cash from some junky penny stock and pass it off as a real pick…scandalous but true.

I WILL NEVER TAKE A DIME OR SHARE FROM ANY PENNY STOCK OR THEIR SHAREHOLDERS, MY STRATEGY AND MY PICKS ARE PURE AND REAL.

It’s early in this case as Randall Lane’s word is about as solid as his financial publishing reputation (absolute shit), so read the article below and let’s see how this thing plays out…Cramer has made a ton of enemies over the years so I wouldn’t be surprised to see them pounce on this and make it bigger than it probably is:

Oh and please do try to ignore the passages that require further editing such as:

“I was running a company I had co-founded: Doubledown Media…” should read “I was running a company into the ground…”

Stay on top of this stuff like I do!

Tim Sykes
Free Video Lessons

My main concern and thoughts this weekend surrounded the heavy selling we experienced last week away from the 200 day moving average. I said in previous posts that we needed to not only break that level but hold above it to really get the bulls going crazy – and that did not happen. From the chart you can see that we merely pop over the 200 DMA, hit the major fibonacci level and then sold off. I’ll be watching the latest lows this week for any signs of weakness.

Another horrible example of BIG Government trying to step in everywhere they can. Mark my words – this reform bill WILL do more harm then HELP. With more regulation comes more costs which are going to be directly passed down to you all and myself.

Since when did we become a country were individuals don’t take responsibility for their own problems. Everything is somehow cause by some other factor other than our own decisions. Unbelievable…

If you think the banks on Wall Street are just going to eat these costs and NOT find a way to make money – you are so sadly wrong. Time once again to call your representatives. This financial disaster will get worse…

Under the agreement banks would only spin off their riskiest derivatives trades. Banks to keep some of their lucrative business based on trades in derivatives related to interest rates, foreign changes, gold and silver. They could even arrange credit default swaps, the notorious instruments blamed for the meltdown, as long as they were traded through clearing houses. Banks also would be allowed to trade in derivatives with their own money to hedge against market fluctuations.

The legislation next heads to the full Senate and House where it is expected to win final approval and President Barack Obama could sign it into law before July 4.

Mostly all of the hype this morning is a result of the announcement that China will end the peg of the yuan to the dollar which has boosted investors’ confidence in the global economy.

The original two-year currency peg was adopted during the global financial crisis to protect exporters from currency values. Now, the “un-peg” is really a good sign that policy makers expect the economy to strengthen. This is why we are seeing the markets rally so hard this morning.

I said it yesterday and I’ll say it again – the long term Fibonacci retracement levels are very important for the SPX, DOW, NASDAQ, and RUT. Yesterday I mentioned that they were going to act as strong resistance until we see a slight pull back to gain some strength – and that they did. As soon as we get above this level things will be much stronger, but until then…it’s anyones market.

Moody’s has once again downgraded Greece’s credit rating – this time to Junk status. This is a huge move and could really sway the markets over the next couple of weeks. I’m almost certain that more downgrades will be coming especially for Spain and Portugal.

Moody’s slashed Greece‘s rating by four notches (unheard of move) citing “macroeconomic and implementation risks” and really persistent doubts about Greece’s ability to repay its massive government debt.

I say again AMERICA, we must learn from this and make the hard changes now!

With the recent world-wide economic recession that does not seem to be getting any better and with all the jobs getting laid off and employees getting a sharp cut in their incomes, everybody is looking for ways to save more. People need to know how to be more economical while spending, how to be efficient in budgeting and how to save for rainy days. Cutting down on your expenses may seem like the hardest thing to do but after reading this, you’ll get a good idea on how to do it the proper way.

For a lot of people, it is very hard to save by cutting down some of their expenses and a lot of people actually live from paycheck to paycheck but that is not wise in any situation at all. Your major expense will probably be mortgage or living rent which is necessary but after that, it will probably be food. Most people love to eat out either because they don’t or can’t cook or because it has become something of a habit. Well, this is the first area where you need to save money; spending about $20 everyday on eating out can prove to be very expensive over the month. Do some weekly grocery and try cooking at home; you’ll be saving on fuel as well as food.

Utilities are another place where you can cut down. If it’s the winter time, turn the heat down and if it’s the summer, turn it up. Use your appliances wisely and don’t let them on if you’re not using them, keep the lights off when not in use and the same goes for PC, television sets, washing machines etc.

We tend to use a lot of things that we don’t really need, try making a list of those things. Memberships? Internet? Phone service? If you don’t use the internet too much, you can always switch to a cheaper internet package or a cheaper internet provider altogether! If you have memberships that you don’t use or need regularly, get rid of them soon. Excessive memberships that are not in use can be a monthly or yearly expense that’s basically going down the drain. You can even cut your phone expense by getting rid of your landline service, if you don’t use it at all that is.

You can even cut your expenses while going out for groceries. Avoid spending too much on brands that cost more than other cheaper brands offering the same product. If you can, avoid spending too much on snacks and food that does not get used over the week. If you or your spouse spends too much on beauty treatments, well, you have got to cut that down too! Getting your nails done or a haircut or treating yourself every once in a while is fine but try to see if you can cut down in this area as well.

In short, spend your income on things you really need and less on luxuries you can do without on a daily basis. Sit down and make a list of “Necessary expenses” and “Unnecessary ones” and you’ll automatically find more bucks in your wallet.

Author Bio

Richard Jacobs is a chief editor since early 2007, and he currently works for My DUI Attorney. A webiste that helps you to find the right DUI lawyer, you can search for a Scottsdale DUI online, anytime!

The Dow Jones has had some really clear and easy to trade Fibonacci retracement levels. Notice that the flash crash hit one then we bounce again off the same level shortly before breaking it hard (a clear sign of strong support). And now we are hitting our heads on the same exact level as resistance. My guess is that we rally there first before continuing higher.

It’s almost draft day for small cap up-and-comers – and I’ve got four contenders that could make the cut this Friday. If they do, there’s a good chance these companies could see shares pop. 

Yesterday I alerted you to this Friday’s Russell Reconstitution, and mentioned the profit opportunity. If you missed yesterday’s issue, you can click here to get caught up. But to quickly recap: once a year the Russell indexes add and subtract companies, and the event is happening this Friday. So I’ve been doing my homework to find companies that might get listed on the Russell 2000 small cap index.

Now let’s get down to business and look at some of these potential Russell 2000 additions.    

I sifted through company after company that met the criteria to be included in this year’s rebalance. And I’ve picked out a few that I’m excited about. These companies, in most cases, have never been listed on a major index – or even a minor index for that matter – so getting listed could have a substantial positive impact on their stock prices this Friday. 

The company’s I’ve picked have shown strong results recently and should hold up well even if they don’t get the coveted call from ‘coach’ Russell on Friday.

If they do get that call, their stocks could be looking at a very nice June indeed.

Two words: Lehman Brothers. Should we trust Ben Bernanke’s Forecast? Heck no! These guys are terrible at economic forecasting. Monday he said that he didn’t think that the U.S. economy would slip back in to recession. My guess is that’s exactly where we are headed. If you followed their predictions, you probably would have ended up bankrupt. Here’s what he said about the housing market back in May 2007:

All that said, given the fundamental factors in place that should support the demand for housing, we believe the effect of the troubles in the subprime sector on the broader housing market will likely be limited, and we do not expect significant spillovers from the subprime market to the rest of the economy or to the financial system.

With yesterday’s early morning decline which was quickly erased, the S&P 500 went back to ‘extreme’ oversold levels, which we define as more than two standard deviations below the 50-day moving average. Using our chart, you can seen in red what we are talking about here.

A move higher is likely of course to continue today. However, a major fibonacci retracement level is near and should not be taken lightly.

We’ve been looking at alternative energy stocks lately, and have reviewed a number that have pretty nice upside potential. However, as investors, we need to spread out our risk, and while alternative energy is a way to invest in what our energy mix could (and should) look like, we also need to invest in what we know is working right now.

That means investing in coal.

I know, I know; you may wonder how I can switch from advocating alternative energy stocks one day to recommending you buy coal stocks the next. But the reason is simple: I can’t afford to just invest in future technologies. Stocks derive value from anticipated future cash flows – and the higher the degree of uncertainty with respect to these cash flows, the greater the stock price risk.