Update for Friday, September 25, 2009

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INTERESTED IN MORE “HOW TO” INVESTMENT INFO PLUS MY NOT ALWAYS POLITICALLY CORRECT RUMINATIONS ABOUT THE MARKET?

I have set up a blog to share my market analysis & insights -- and to sometimes blow off steam when something stupid (or brilliant) catches my eye. You can post comments and voice your opinion uncensored. Take a look:

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This week's hot topics are:

1. "Against The Wind"

2. "The Importance Of Fund Expense Ratios"

3. "Protecting Profits"

4. "Sell Stops And Mutual Funds"

5. "Sunday Musings: Crash And Recovery"

6. "What Can A Poor Slob Do?"

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THE LINK TO OUR CURRENT MUTUAL FUND/ETF STATSHEET is:

http://www.successful-investment.com/StatSheet/SS092409.htm

This StatSheet is updated through Thursday, September 24, 2009.
The next scheduled update will be Thursday, October 1, 2009.

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Friday, September 25, 2009

A GLASS CEILING

So far Dow 10,000 has proved to be a glass ceiling as the major indexes stumbled by having their worst weekly loss since early July. For the week, the Dow gave back 1.6%, the Nasdaq surrendered 2%, and the S&P 500 was off 2.2%.

Given the strong rebound of the past few months, this pullback is hardly newsworthy but long overdue. The question is as to whether upward momentum can be restored next week via another assault on the Dow 10,000 level or if this will be the beginning of the end of the trend.

Our Trend Tracking Indexes (TTIs) pulled back as well but remain firmly in bullish territory. Here's how we stand relative to the long-term trend lines:

Domestic TTI: +7.74%
International TTI: +14.69%
Hedge TTI: +2.26%

Next week, the markets will be facing some headwinds in the form of economic reports. The big one will be on unemployment and nonfarm payrolls, which is preceded by September auto sales. The actual numbers are not as important as the interpretation.

Remember that for most of the past 6 months a "less bad" economic number has been "good" as far as the stock market was concerned. It supported hope that a recovery was in the making. How long this attitude can be sustained is another question.

Disappointing today were durable goods orders, which unexpectedly fell in August supporting the view that manufacturing continues to be sloppy and choppy. New home sales didn't contribute to any euphoria either. This tells me that an outright recovery (including jobs) is still wishful thinking, but Wall Street, viewing things through rose colored glasses, has not caught on to that fact yet.

Have a good week.

Ulli...

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Back issues of the Fund Tracker are available on the web at:

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Do you have a question regarding your mutual fund investments?

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Second, I am not running for office and do not have to hide my thoughts in evasive language designed to obscure what I really mean.

So, feel free to send your questions to: ulli@successful-investment.com

All Reader Q & A's for this Buy Cycle are now listed at our web site! Check it out at:

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Do you have the time to follow our investment plans yourself? If you are a busy professional who would like to have his portfolio managed using our methodology, please contact me directly or get more details at:

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We are located at:

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Until next week.

Ulli...

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Ulli G. Niemann
Registered Investment Advisor
714.841.5804 Toll free: 866.580.6764
http://www.successful-investment.com
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