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Will Seneate Pass New “Jobs” Bill?

Founder — Wed, 10 Mar 2010 21:53:27 +0000

Legislation blending help for the jobless with popular tax breaks for businesses and individuals is slated to pass the Senate today or tomorrow. The main concern I have is that it still adds too much to the $12.5 trillion national debt we already have on the books.

The bill would provide unemployment benefits of up to 99 weeks in many states for people! So now instead of working for a living we can just sit around for 99 WEEKS and collect a check. This will NOT help us get out of jobs, only lead us further down the path of destruction.

Market Vectors Gold Miners (GDX) Long

Founder — Wed, 10 Mar 2010 16:14:30 +0000

Market Vectors Gold Miners (GDX) may be setting up for a nice long trade here soon. It’s already broken out above a three-month downtrend line, as well as its 50-day MA. If it continues to show strength here soon and breaks above this 4 day high then it could be a good short-term long trade or a great entry for those who are long term bullish in GOLD. Have fun!

/ES And /NQ Futures Still In Tight Range

Founder — Wed, 10 Mar 2010 13:03:45 +0000

/ES and /NQ stock market futures are trading in a tight range this morning traders. Seems the market is continuing to pause here just below the recent highs from a couple months ago, waiting for some news to drive it one way or another. Here are the updated index levels on the SPX intra-day chart.

Today everyone will be examining a report in The Wall Street Journal saying the Federal Reserve is debating how to signal the next rate move, though the central bank is unlikely to change its phrasing about keeping interest rates near zero for a long time during next week’s meeting.

AAPL Apple Stock Breakout Complete

Founder — Tue, 09 Mar 2010 20:05:12 +0000

We have been watching APPL apple stock along with some other big Tech names recently as the market continues to rally higher. Notice the very clean breakout to new and fresh highs for AAPL just recently. I would expect this to consolidate sideways before heading higher over the next year.

Mutual Funds Have No More Cash

Founder — Tue, 09 Mar 2010 17:45:22 +0000

This came out from Bloomberg the other day showing that Mutual Funds are now runnning out of cash to invest. See a part of the article here:

Equity mutual funds are burning through cash at the fastest rate in 18 years, leaving them with the smallest reserves since 2007 in a sign that gains for the Standard & Poor’s 500 Index may slow.

Cash dropped to 3.6 percent of assets from 5.7 percent in January 2009, leaving managers with $172 billion in the quickest decrease since 1991, Investment Company Institute datashow. The last time stock managers held such a small proportion was September 2007, a month before the S&P 500 began a 57 percent drop, according to data compiled by Bloomberg.

Where Did All The Volume Go?

Founder — Tue, 09 Mar 2010 13:14:53 +0000

Yesterday marked the slowest day of NYSE volume since the bottom. Huh? So at high prices, investor’s aren’t buying stock as much – what does that tell you!

S&P 500 Technical Levels To Watch

Founder — Tue, 09 Mar 2010 12:37:25 +0000

S&P 500 index futures are lower this morning as commodities weakened ahead of a report expected to show another increase in crude oil inventories, a bearish sign for demand in the world’s largest energy consumer. Technology shares will also be in focus one day after Texas Instruments Inc (TXN.N) raised its quarterly earnings and revenue forecast. Oil prices slipped as expected on a stronger dollar and expectations that crude inventories will continue to rise. For now, here are the levels we are working with on the S&P. Actually there are some pretty good support levels below us so it’s going to take some serious selling to break these.

A Top Is Near – Email Proof!

Founder — Tue, 09 Mar 2010 11:42:51 +0000

Ever now and again I get emails from people telling me how ridiculous I am for doing this or that in the market. I take them with a grain of salt of course and it’s NEVER personal. Everyone has an opinion right. Well, I got this email last night and to me it CLEARLY proves my point about people being overly-bullish right now.

Makes you think right? If everyone is bullish then we should see a top. In fact the top has been forming for a while now. Remember that the 2007 top took nearly a year to form! And as for the comment about our performance over the last 6 months – ask any member how they faired. We haven’t had a losing trade for over a year now.

EU Banks Will Back Greece – EURO Rallies

Founder — Mon, 08 Mar 2010 19:40:34 +0000

Speculators beware as the EU banks are promising to back Greece through the debt crisis that has jeopardized all 16 nations in the common currency.

Here’s what French President Nicolas Sarkozy said over the weekend:

Of course, the future of Greece is in question, but it’s also that of Europe being played out.Europeans have created a common currency — all the countries that share this currency must show solidarity.

Clearly we are going to see some short-term strength in the EUR/USD. Here’s the daily chart to watch.

AIG Sells 2nd Overseas Unit – What’s Left?

Founder — Mon, 08 Mar 2010 14:52:43 +0000

The unloading of AIG assets continued today. AIG is selling an overseas insurance business to rival MetLife for $15.5bn as it continues to raise funds to pay off a federal bailout. But the big question we have is whether there will be enough of “good” business left to continue to make money on or not?

The bailout money continues to rise as AIG was given an initial $85bn in September 2008 to prevent its collapse which has subsequently been raised to $182.3bn. In addition they have to repay a $9bn investment in the company made by the Federal Reserve Bank of New York. Ha! So they are more than likely looking to continue to units off over the next couple of months.