Friday, January 16, 2009

Friday's Forward-Thinking Strategy

Winterous Greetings to All! Next week's economic calendar is extremely thin. From January 19th through 23rd there is actually only one day with data and that occurs on Thursday! The 44th Presidential Inauguration is Tuesday, January 20th: http://en.wikipedia.org/wiki/Barack_Obama_2009_presidential_inauguration We congratulate President-elect Obama on his against-all-odds victory, yet we are not entirely sold on his change rhetoric until we better understand his policies in regards to regulating the financial sector. As fiscally conservative thinkers, we stand for less government regulation and lower taxes in our still capitalistic society. We've blogged numerous times about the sad fact all five U.S. Investment Banks went down in 2008. With the absence of that leverage from lower Manhattan, our hope for a sustained market recovery of S&P above 1,000 in 2009 is less than 20%. Thursday brings us Housing Starts for the month of December, and Initial Claims for Unemployment for week ending 1/17, both at 8:30AM ET. At 11:00AM ET Crude Inventories for week ending 1/16 will be announced. As forward-thinkers, we recommend our readers to go to a overweight cash or a 15% short position through various ETF funds (SMN, FXP, SRS, EEV). IF you must be long equities here, we remind again of the sell stop limits you should incorporate into your 2009 strategy. Without either mental or electronically triggered stops, you carry the risk of falling in love and that buy & hold behavior may knock you out of the market. Staying in this game means making decisions from at least week to week, so most of our readers will never allow their portfolios to rust and just fade away. The Psychology of the Call team hopes this email reached you in good health & good spirits. Speaking of not allowing your holdings to 'rust', we leave you with this music video relief, compliments of Youtube: http://www.youtube.com/watch?v=mUnbNg6HHjE&feature=related

2 comments:

Anonymous said...

Obama has his hands full. Don't believe he will change anything!

TROUBLESHOOTER said...

MYOPIA ALERT...
SOS SOS SOS
http://www.financialsense.com/Experts/2009/Celente.html