Tuesday 13Nov2012 - What Next?

Chris Tidd an Investment Advisor at Odlum Brown included this chart in his recent Investment Advisory Newsletter. It shows a high correlation between the SP500 Index and commercial futures currency traders position re the Euro. The chart indicates a strong probability of weak equity markets for at least the next 9+ months. Thus, one should be cautious going forward with Preservation of Capital as a high priority.

Click to enlarge.

Tuesday 13November2012 - Chart of he Day!

This past Friday 09November the NYSE Bullish Percent Index rolled over to the downside with a column of O's. This is the start of a trend indicating fewer and fewer of the 1200+ NYSE traded stocks are bullish. This is an internal strength indicator.

This is just one of a number of technical indicators used to determine which way stock markets are headed. This indicator helps one be 'On the Right Side of the Market' for shorter term trading. 

Tuesday 13Nov2012 - Dagwood's Take!

 

Thursday 08Nov2012 - What Next? Pay Attention to the Presidential Cycle.

Charlie Rose talks with Jeremy Grantham of Investment Management firm GMO.

“As an investor, what do you do?

“I’ve hero-worshipped the presidential cycle. Going back to 1932, if you take the first and second year together, they’ve had no real return in the market. All of the return has been compressed into a gigantic Year Three and a respectable Year Four. For us, the cycle years start on October 1st. So now we’re in the dreaded first year. And we have Republicans threatening to add fiscal constraints into a very fragile economy. We have the European situation. We have China stumbling in an incredible slow-motion style. I think it’s a really good year to keep your head down….

I am going to be careful, particularly for the first half of next year. Great brands of blue chips are not so bad in the U.S. Emerging countries are about fair price. Beaten-down European stocks, particularly the so-called value stocks, are probably a little cheap, although risky. And resource stocks, once they reflect the weak economy—and we’ll get another whack-down—will be a wonderful long-term purchase. Farmland and forests, which should be the backbone of any long-term, serious portfolio. … It will also be a good time to buy in. “

JD - Personally, I am very cautious going forward and waiting for better opportunities to reinvest cash sitting on the sidelines.

A couple of options for cash held on the sidelines with current low interest rates.
Money market funds are an option.
But Investment Savings Accounts provide a better yield at about 1.25%
Some examples are:
RBC Investment Savings Account. Fund Code RBF2010
TD Investment Savings Account. Fund Code TDB8150
Altamira High-Interest CasPerformer. Fund Code NBC100

Sunday 04Nov2012 - Dagwood's Take!

Saturday 03Nov2012 - My 5 Cents Worth!

The Euro is now very close to breaking support levels for its bear market rally from late July lows.
If it breaks down, I plan to add to EUO-NYSE positions. EUO is a 2X inverse ETF that increases in price when the Euro declines vs the US dollar.

The following chart and comment is from EWI Friday Short Term Update.

Saturday 03Nov2012 - Dagwood's Take!