The Market Toolbox: February 24, 2006
Published: Fri, 02/24/06
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The Market Toolbox : You are receiving this e-mail as a part of your free subscription. If you would like to change your e-mail settings please follow the instructions at the bottom of this e-mail. Welcome To The Market Toolbox for February 24, 2006 A Free Newsletter Service from Investing Systems Inc. In this issue: The Market Intelligence Report
Hello Everyone, Funny how things can change so fast. Why just a few short weeks ago we were not really concerned with the Geopolitics of most of the world's little banana republics, but now it's getting serious. Seems that the fanatics will blow up anything. How in the heck are we supposed to chase around every nut-job on the planet with brigades of troops? Simple answer is, you can't. Now, what that leaves is how to deal with the "impact" of these events as they pertain to your investments. There are a few clever ways that you can navigate what will certainly be a rocky road at best. In times of social or geopolitical crisis, oil and gold will do very well. If you want an easy way to play oil, take a look at XLE, the ETF for oil, it's one of the better ways to play the sector until a crude oil ETF comes out. Next let's look at the metals. You can buy gold and silver, you can buy the GLD index, or you can buy the gold and silver mining companies. I hear the experts all the time talking about how gold and silver are so undervalued that they are nearly guaranteed to be home run investments. They do make a convincing argument. But, we have been hearing the same thing for decades, and it seems to me that if they were right, that gold would already be 2500 an ounce... maybe more. I think that the market is probably manipulated. Although, if I had to guess, I would say the bubble market in gold and oil starts in March. Oil, gold and silver will all do very well. It may take a year or two to play out but Gold, Silver and Oil all still make attractive long term investment choices. Speaking of Gold, now you can get real time streaming quotes on Gold & Silver on the metals page of the Market Toolbox Desktop Portal. These new quotes are streaming real-time, 24 hours a day as the metals trade world-wide. If you want to pick up some gold or silver... I recommend http://www.apmex.com. Those folks have fair prices, great customer service, and a very nice selection of bullion. Bill always says that playing the gold stocks is a better idea because of the leverage. A few of his favorites are... Goldcorp Inc. GG
Glamis Gold Ltd. GLG
Yamana Gold Inc. AUY
Gammon Lake Resources Inc. GRS
Coeur d'Alene Mines Corp. CDE
Silver Wheaton Corp. SLW
Apex Silver Mines Ltd. SIL
Newmont Mining Corp. NEM
If anyone has any ideas on how to track maniacs in minivans, give the joint chiefs a call, they are going to be dealing with this type of activity for decades to come. Let's look into the market now... The general feeling that comes to me is be cautious. The market internals are pretty good, in fact quite strong. That leads me to think the sell-off is nearer than farther. Take a peek inside...
The long term moving averages are catching up with the short term and the short-term m/a's are flattening out. Are we having trouble pushing higher? I think that the near term top of the range is about 11,100 on the DOW and we have not been able to break out much higher same goes for 2300 on the NASDAQ. The downside risk I am afraid is largely being driven by the nut-jobs in the minivans. Since I can't predict what they are doing I will say that the trading range lower limits appear to be at 10,750 on the DOW and 2250 on the NASDAQ. Today's action was good with the following data as proof...
The DOW was down 7 and change today, but the other market indices showed strength across the board. It makes me wonder why everyone refers to the DOW as the "market". It's not really a very good indicator at all. Look at some "broader" indices...
We like to look deep into the market and the numbers looked pretty good today. Where do we think the market is going from here? Let's look... We got our recent sell signal when the red bar appeared above 70, I remember saying at the time that it was an ambiguous signal. The markets have been "drifting" since, but the word caution still comes to the front of my mind. One should be prepared to liquidate some holdings and go to cash if trading range support gets broken down.
On that note, we are looking at smaller cap stocks for great performance as the mega caps are just too big to even look at for trading profits. We have been working with Peter Leeds. If you have the Desktop Portal you can read his latest book inside, just click the Penny Stock Link in the portal. Peter Leeds subscription service is a top performer compared to all others. Last year 90% of his picks posted gains, and even better is that the average gain on his picks over the last 3 years in 155%. WOW. Take a look at his site, he offers a lot of free information if you want it via e-mail and I cannot think of a better person to get low priced stock picks from. Recently we had Peter Leeds on our radio show and you can listen "On Demand" right here. He made a great offer to our users and you can be sure not to miss out if you listen till the end. Moving On... Another new site that gets daily input from about 20 or so of the World's Top Traders. It's called www.TigerSharkTrading.com and it's run by a great guy named David Mecklenburg. Be sure to check it out. We have known Dave for a long time and really like the work he puts into the site. He has a bunch of great writers and they do weekly audio interviews and even have some videos up by legends like Dave Landry. Finally... I will say it again... learn to Pick Stocks We are running a special offer on the Stock Picker RT software. 3 Month trial only $199.00, that is a hundred bucks off the regular quarterly price. Old and poor is no way to go through retirement. Until Next Time... Best wishes and Good Investing, |
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