1. FEBRUARY MARKETS
2. UP STARS/DOWN STARS
3. GOLDEN OPPORTUNITIES
4. QUOTES
5. ON THE WEB
6. LETTERS 

 
1. WHY?
Why was the Fed interest rate increase a minor move? Why was it between scheduled meetings? I believe over time, this will be seen as “too little, too late.”
Why was the IMF not able to sell more gold to Central Banks? Gold prices may drop as IMF plans open market sale‎ 

Bernanke Likely to Assure Congress Higher Interest Rates Aren't Imminent
The Fed is set to unwind emergency lending programs as well as end mortgage buying at the end of March and keep interest rates low for the foreseeable future.

For most of next week, we are most likely to see a complacent US stock market. Then, before the end of April and possibly as soon as early March, the stock market threat level becomes Elevated, or Yellow!
Until then Day Trading is likely to outperform Buy and Hold and Sell and Hold. Investors are advised to remain patient! 

FALL ’10 FASHION WEEK AND MARKETS
Coming to a store near you: long hems, lots of fur
The hemlines came down for New York Fashion Week, which concluded last Thursday, as designers ditched the cheerful miniskirts of seasons past
Market Translation: Another correction is coming and non-SRI investments such as uranium (like fur) is making a comeback.
American style, way up high
Market Translation: “Buy America” may also become a stock mantra as time goes by. 

 
KEY DATES:    FEBRUARY 25, 26
DJIA:                10347 PIVOT
SPX:                1100 PIVOT
NASDAQ:         2120 SUPPORT  2280 RESISTANCE
XAU:                145 SUPPORT 175 RESISTANCE
APRIL GOLD:    1110 PIVOT 1060 SUPPORT R1 1125 R2 1150  R3 1175
MAR SILVER:   1645 PIVOT 14.50 SUPPORT 17.50 RESISTANCE
XOI:                  990 SUPPORT R1 1055 R2 1065  R3 1080
APRIL OIL:        79 PIVOT 82 RESISTANCE
US$                  S1 80 S2 79.50 S3 78.50 82 RESISTANCE?   

Market Marker Sentiment changes March to June 2010.  
2009 CLOSE:           DJIA  10428 SPX  1115 & NASDAQ 2269
2008 CLOSE:           DJIA   8776, SPX   903 & NASDAQ 1577
2007 CLOSE:           DJIA 13264, SPX 1468 & NASDAQ 2655
2006 CLOSE:           DJIA 12463, SPX 1418 & NASDAQ 2415
2005 CLOSE:           DJIA 10717, SPX 1248 & NASDAQ 2205
DJIA:                       6 ~ FV 1 UV; 6 offer 4%+ Dividends 2 offer 5%+ Dividends.
THINK TRADITIONAL SWISS AND PRESERVE CAPITAL: FOCUS ON PROTECTING AGAINST DOWNSIDE RISK.                                                                                             

2. The Municipal Bond Crisis Is About to Begin

HW: Thus ends another safe haven.

REITs key for retirement portfolio stability
HW: We agree although, we prefer to wait until later in the spring to slowly accumulate this sector. 

3. International Monetary Fund to sell another 191 tons of gold
Was the IMF sales of $6BN in gold announced last week a SELL signal or a Buying opportunity?  Good question.

This news plus traditional seasonal factors are bear signals. Yet, we are close to our first .82 US Dollar trigger of an intermediate gold buy. Then again, the US$ can now overshoot by as much as .84. As I said, good question! 

Last week, we sold our trading silver just shy of our initial $16.45 trading target. We plan to rebuy in or by early to mid March.
Given the Gold/XAU Ratio is 6.79 and the Gold/Silver Ratio 68.5, should gold be neutral or positive, we prefer silver stocks to gold stocks and gold stocks to gold.  

4. “The economic data continues to trend to the positive, corporate profits by and large exceeded expectations and some of the global uncertainty about sovereign debt has been taken away. We have an unprecedented worldwide recovery going on.”
Hank Smith, chief investment officer, Haverford Trust
HW: I think we must be living in a parallel universe!

Philip Dow,  equity strategist, at RBC Wealth Management
HW: Not my guess, especially early Spring.

 “It’s actually pretty positive and is basically showing the Fed expressing confidence in the financial system."
Simon Melluish, senior portfolio manager, Gartmore Investment Management
HW: It can also be viewed as “too little, too late” from a longer term perspective.

5. How to score with large-cap core

The Yuan Is About To Surge Beyond Your Wildest Dreams

6. READER: Where do I find the current price for USD on Bloomberg. I must be blind?
HW:  As for the US Dollar Index, you can Google dozens of free net feeds. Here is one http://www.fxstreet.com/rates-charts/usdollar-index. 

READER: The Long and Short of Selling During a Market Crash
HW: Hopefully we will not find out soon.