Saturday, March 05, 2011

MADE MY LIST AND CHECKED IT TWICE

help me "SEE THE LIGHT" what did I forget or use faulty logic? If I invest....and ONLY think "rising price good ughh oomgawah..." I would be missing the bigger picture and trend.

WHAT IS THE TREND? Bullish...rising MA's....this I have repeatedly conceded, I will concede, be it oil, gold or SSO....be long and strong......when you see what I have written, when trading ONLY ONE THING MATTERS....TA and TREND......my argument is at SOME point, unless the list changes below.....this recovery in most terms is the weakest on record...where it counts....maybe that made it even more obvious (of course the FED even told us to our faces) they would make sure the stocks markets would catch fire, stay on fire....we got your back forever....as long as it takes...whatever it takes....


Positives

• Low interest rates, makes borrowing more affordable
• Companies have cash horde
• Low wage inflation
• 3rd world demand rising for foreign goods
• Fed environment pro liquidity
• Stock market appreciation wealth effect
• New technologies
• High productivity
• Layoffs have slowed, hiring increasing albeit slowly
• Rising energy prices may finally ignite alternative energy funding and development, adding jobs to that field

Negatives

• High unemployment persists
• Rising interest rates
• Tight bank lending standards
• Consumer savings rate rising
• Consumer sentiment low by historical standards during recovery
• Housing sales and values have not stabilized, near 2009 lows
• Consumer loans contracting
• Low rates hurt savers, only returns on risky investments
• CPI and PPI understate inflation
• Oil above $100 and Gas near $4 hurts consumer spending (in the past if persist have led to Recessions)
• Gov't spending at Federal and State levels under budget cut scope, decreased gov't spending would hurt economy
• Workweek and wages stagnating
• In regards to debt, jobs secular changes may be in place
• Retail jobs decreased in last job report
• Mark To Market accounting change OVERSTATES financial company balance sheets and profits, which overstates SPX earnings.
• Housing has led 7 of last 8 Recoveries from Recession, not this time.
• Fed rates at 0% causing distortions, inflation and have been ineffective in helping housing market, yet it persists....this 0% policy and QE programs have emptied the FED arsenal to fight slowdown and crisis.
• Reluctance of FED to remove 0% policy shows worry economy cannot function on its own. This would be indicative of a weak recovery, not a strong one.
• Continued inflationary pressures will begin to cut into company profits, and IMHO we are VERY near PEAK PROFITS.
• High energy prices filter into every sector of economy and damage Consumer sentiment and spending. Every trip to the pump, for most at least once or twice a week constant reminder of rising prices.
• Companies will raise prices and add surcharges to combat rising fuel prices.

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