What are great trading environment. The stock market is giving investors a gift. This gift is an opportunity to properly redeploy your assets properly. If you were creamed during the market sell-offs of 2000, and 2008-2009, now is your chance to take some profits, and wait for the next disaster to happen. Oh, yes. It will happen!
Those touting the market are trying to get us to believe that unemployment is a lagging indicator. I'll tell you what's lagging; jobs, real estate, and retail sales. They will lag for quite sometime. I'd like to know what part of 10.2% unemployment do people not understand.
Please answer this question. Do you really real question believe we are in the midst of a new bull market? Do we continue to believe the same Pide Pipers of Wall Street who convinced millions of investors to follow them into the NASDAQ sea only to be drown on shares of worthless dot-com stocks?
As a side-note, I didn't know that a book existed entitled, "The Pied Pipers Of Wall Street", by Benjamin Cole. Look's interesting though.
Wall Street always has an advantage over you. They've got the money, and the power, to repair their images by advertising on the TV. You know the drill, if you see an ad enough, you begin to believe it.
All we can do in a system as corrupt as ours is make sure that we don't become victims, and benefit when opportunities arise.
Economic con-men have successfully put a positive spin the jobless numbers since labor day. They have investors shrugging off poor employment numbers by saying stuff like "lagging indicator", "U shaped recovery", and anything else a person is gullible enough to believe.
On Friday, the stock market magically recovered after learning that the nations unemployment rate rose to a 26-year high of 10.2%. Media outlets were saying that investors appeared to look past the disappointing October jobs. Okay, stop right there. Exactly what investors are they talking about? Who are they referring to? Who were these investors that decided to buy- once again all in unison?
Was the buying coming from mutual fund companies who were telepathically connected, and all at once, and by coincidence, deciding to buy stocks at the same time? Or, was it instead, a major investment bank pushing a button, driving the entire market higher?
Yes, they do that kind of thing. The Plunge Protection Team (PPT) is obviously working overtime.
A week ago Friday, the stock market closed down 249 points, and I asked then, who pulled the plug? I said, "Do you really think mutual funds, pension funds, and ordinary investors were connected telepathically, and in unison, decided to take profits? No way!"
Remember, Goldman Sachs made $3 billion in trading gains for the quarter. You can't make that kind of money without pushing a few buy and sell buttons.
Here are our Top 10 ETF's for the week of November 9th:
1) DBA: Powershares DB Agriculture Fund
2) IGF: iShares S&P Global Infrastructure Index Fund
3) DBE: PowerShares DB Energy
4) IYW: iShares DJ US Technology Sector Index Fund
5) IYF: iShares Dow Jones US Financial Sector
6) DDM: Ultra Dow 30 Proshares ETF
7) SDS: UltraShort S&P500 ProShares
8) CASH
9) CASH
10) CASH
Here are our Top 10 Fidelity Sector Funds for November 2009
1) FSPTX: Technology Portfolio
2) FSRBX: Banking
3) FSCGX: Industrial Equipment
4) FCYIX: Industrials
5) FSENX: Energy
6) FSCSX: Computers & Software
7) FNARX: Natural Resources
8) CASH
9) CASH
10) CASH
For the Week:
As of Friday's Close;
DJIA: 10,023.42, up 17.46
S&P 500: 1,069.30, up 2.67
Nasdaq Composite: 2,112.44, up 7.12
On Friday, the jobs numbers showed that the U.S. workforce lost another 512,000 jobs. Wall Street looked at this as good news erasing early opening losses, closing 17 points higher on the day.
The S&P 500 was up 2 points on Friday to close at 1069. The NASDAQ gained 7 points to 2112. The 10-year Treasury note was up 7/32 to yield 3.50%. For the week, the Dow was up 310 points, or 3.2%. The S&P 500 was up 33 points, or 3.2%. The NASDAQ rose 67 points, or 3.3%.
Economic News:
- Factory orders for September rose 0.9 percent vs. a 0.8 percent decline in August.
- The ISM's non-manufacturing index for October came in at 50.6 vs. 50.9.
- Initial jobless claims came in at 512,000, down from the 532,000 the prior week.
- The nations unemployment rate reached 10.2% in October.
- US Consumer Credit for September continued to tighten dramatically.
- U.S. Economic Calendar This Week.
-The U.S. Dollar
Our current asset allocation is as follows;
50% Equities: (Was 85%/Normally 95%) Aggressive
40% Equities: (Was 72%/Normally 80%) Moderately Aggressive
30% Equities: (Was 56%/Normally 60%) Moderate
20% Equities: (Was 36%/Normally 40%) Moderately Conservative
10% Equities: (Was 18%/Normally 20%) Conservative
