For Monday, January 3rd, 2011
Happy New Year. Despite all the bad news, the constant finger pointing, the Tea Party, the Republican refusal to compromise, Afghanistan, and the stalemate in vote, all covered by greed, we had a good year. And Sarah Palin had a boob job.
Dow +11%
Gold +28
Oil Futures +13%
Cotton Futures+89%
10 Year Treasury +7.7%
Volatility Index -19%
Natural Gas Futures-222%
Shanghai Composite- -16%
*Small cap stocks had the highest returns in 2010, and we were well positioned in our holdings. Our Dremain fund is up 28% and our numerous shot term buys and sells have hit 44% returns.
*We hold WMT, RIG, AAPL, CAT, and PG all as long term options. Continue to hold these, and to day trade them for any good profit, as there will be times to buy again.
· As euphoria abounds, there are some warning signs, and as usual, we will not see them. Greed will blind us.
· Short interest is minimal.
· VIX is at true lows
· People are borrowing more on margin to trade again
· We’ve had 17 weeks of upside
· Every part of corporate America has benefited, except small business
· Job loss has equaled export growth. We’ve hurt people to make money.
· Consensus of bullish sentiment is at all time highs.
“It makes the contrarian shiver in his bones. To continue this outstanding economic improvement things must really fire on all cylinders, and food costs up, gas rising, will hold consumer confidence steady at best.
Contrarians will tell you that 2011 will be the reverse of 2010; decent economic growth, but a disappointing showing by the stock market. That’s what most people do not expect right now; precisely why investors should be worried about it happening.
Many technical analysts do not believe the argument that the cash that has been supposedly on the sidelines will be a steady source of fuel for an equity rally.
This is the first full week”back”, and the week that supposedly proves if the market will be up for a year.
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