Update for Friday, January 29, 2010

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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:

http://thewallstreetbully.blogspot.com

This week's hot topics are:

1. "Reader Help Requested"

2. "An Easy Oversight"

3. "Bumping Against Trading Limitations"

4. "The Rating Game Scam"

5. "Sunday Musings: The True Picture"

6. "Glass Ceiling Still Intact"

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

http://www.successful-investment.com/StatSheet/SS012810.htm

This StatSheet is updated through Thursday, January 28, 2010.
The next scheduled update will be Thursday, February 4, 2010.

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Friday, January 29, 2010

SEESAWING LOWER

The path of least resistance proved to be down this week as bearish tendencies prevailed and pulled the major indexes off their lofty levels for the third straight week of losses. Despite a strong beginning, the pullback has now turned the month of January into a losing one with the Dow surrendering 3.5% while the S&P 500 and Nasdaq lost 3.7% and 5.4% respectively.

If you follow the stats from the Stock Trader's Almanac, you are familiar with the January barometer, which says that January's performance will be an indication as to how we will end up in 2010. Since 1950, there have been only five instances where January was a down month yet the market closed up for the year. This most recent occurrence happened in 2009 when the Dow lost over 8% in January, but gained over 18% for the year.

Our Trend Tracking Indexes (TTIs) headed closer towards their long-term trend lines, but remain above it by the following percentages:

Domestic TTI: +3.13%
International TTI: +2.97%
Hedge TTI: -1.46%

As I recently posted about, those funds/ETFs with the most volatility were the first ones to trigger their sell stops earlier in the week. China and the Asian Tigers were some of them and, in the case of China, its own long term trend line was broken to the downside indicating a return to bear market territory.

The over 3.5% drop in the major indexes for the month is their worst performance since February 09. It appears that there is increasing frustration and concern about the pace of the economic recovery. From my vantage point, there wasn't much of a recovery to begin with since the main driver was government stimulation and not sound economic fundamentals. Sooner or later all of this hype will meet reality, and it remains to be seen whether this point has been reached.

Some of our sell stops were triggered today, and the affected positions will be liquidated on Monday. Next week promises to be an interesting one with a loaded economic calendar featuring the highlight on Friday when the unemployment numbers will be announced.

Have a great week.

Ulli...

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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...

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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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