Update for Friday, October 9, 2009

---------------------------------------------------------

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:

http://thewallstreetbully.blogspot.com

This week's hot topics are:

1. "Exiting The Market: Sell Stop Vs. Trend Line Break"

2. "Making Up Losses"

3. "Reader Q + A: Exit Strategy"

4. "Sell Stops And Bond Funds"

5. "Where Are We Now?"

6. "Play The Calls"

This is another free service, so spread the word to your friends.

-------------------------------------------------------------

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

http://www.successful-investment.com/StatSheet/SS100809.htm

This StatSheet is updated through Thursday, October 8, 2009.
The next scheduled update will be Thursday, October 15, 2009.

-------------------------------------------------------------

Friday, October 10, 2009

THE BULL THAT WOULD NOT DIE

It's no secret that the market is way overextended, yet it continues to surprise with further moves to the upside. This week was no exception as the major indexes added around 4%, which resulted in the two prior weeks of losses being completely wiped out.

To me, the only way to participate safely in this market environment, or deploy new money, is to have an exit strategy in place. I have been harping for months on the fact that a sharp correction is virtually a guarantee, but the timing of it is unknown. The only way to protect your gains, or limit any losses, is by actually executing your sell stops when they get triggered, if you do your own investing.

Sure, there could be more upside potential but, since markets decline faster than they go up, an investor needs to be on guard at all times and never ever become complacent.

Our Trend Tracking Indexes (TTIs) followed market direction and have climbed above their respective trend lines as follows:

Domestic TTI: +8.81%
International TTI: +15.28%
Hedge TTI: +2.71%

I have been against buy-and-hold investing for the past 20 years but, to be fair, there is one good side to it. If the markets turn south all of a sudden, the exit doors won't be crowded and will allow us to step to the sidelines quickly while the buy-and-hold crowd will not accept any trend reversal and will hang on for dear life. History has a tendency to repeat itself and those who did not learn from the 2000 and 2008 market crashes are bound to repeat their mistakes.

As announced last week, I will heading over to Germany this Sunday with my trusty lap top as my companion. I will continue to post to the blog whenever possible and get the Friday newsletter out, but slightly delayed. While I won’t be available for phone calls, I will be able to respond to your emails.

Have a good week.

Ulli...

---------------------------------------------------------------

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

http://www.successful-investment.com/newsletter-archive.php

Do you have a question regarding your mutual fund investments?

I will always give you my unbiased and honest opinion. How can you be sure?

First, this is a free newsletter and it will not affect my renewal rates.

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:

http://www.successful-investment.com/q&a.php

WOULD YOU LIKE TO HAVE YOUR INVESTMENTS PROFESSIONALLY MANAGED?

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:

http://www.successful-investment.com/money_management.htm

We are located at:

18685 A-Main Street, #606
Huntington Beach, CA 92648

Until next week.

Ulli...

Return to Newsletter Archive

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