08/30/2010

08/30/10
Stay fully invested with your retirement accounts. We will not become bearish on the DOW until it closes below 9,835. As mentioned 08/12/10 update the DOW is having a small correction. It has fallen from 10,719 to 9,936 in 3 weeks and should be bought. Buy blue chip large cap funds if you haven't already. BIG MONEY is not through with this market to the upside. They have not been part of the selling in equities. They have however been selling some smaller positions in bonds which means they are playing the odds. These are hedge fund managers and money managers. Bonds have traded at these prices one time in history. The all time high on the 30 year TBond contract is 138 28/32. Last weeks high was 136 31/32 and closed for the week at 133 22/32. Smart money is flat going into an all time high. However it's NCSOs opinion that a new high could be established in bonds but it will be short lived. This is where BIG MONEY will be sellers. It is not worth the risk to trade. The DOW may drift in this trading range for a while longer until Bonds have a large sell off or the Dollar index drops below 80.00 which could cause the sell off. By the way, for those of you who like to keep up with commodities and other markets, we recommend using  www.barchart.com.
In the center of the page click on view all futures markets. Most of these quotes are only delayed 10 to 15 minutes and will serve most investors purpose with out subscribing. Other stocks we like are of course FO, BGU,TNA, GS which we have been long since 135 and FAS should do well in this coming rally. We also like OSIS with two closes below 28.00 as a stop. One stock we recommended recently was CYTX and we are still recommending it. BIG MONEY has been accumulating this stock from 4.32 to 4.70 quietly and supply on the sale side is running thin. They will have to show their hand pretty soon and when they do the next supply will come at 6.12. We don't expect to see that much supply then. This stock is going to make another run at 10.00. When dealing with a speculative stock such as CYTX we recommend only buying what your willing to lose and no more. Don't put all of your money in a speculative stock that could take a long time to make it or fail. Your money could be used better in blue chips. CYTX has a lot going for it but it's not worth risking it all. Managing risk is a key component to successful investing.

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