Update for Friday, February 19, 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. "An Experiment With Shorting The Market"

2. "Vanishing Fears"

3. "Online Broker Commission Cuts Continue"

4. "Is It Time To Sell Bond Funds?"

5. "Sunday Musings: It’s All About Personal Choice"

6. "Above The Sell Stop"

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

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

http://www.successful-investment.com/StatSheet/SS021810.htm

This StatSheet is updated through Thursday, February 18, 2010.
The next scheduled update will be Thursday, February 25, 2010.

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Friday, February 19, 2010

HEADING HIGHER

After four consecutive weeks of losses, the major averages managed to string together a second week of gains, the latest one more convincing than the previous one. The Dow finished up 3%, while the S&P 500 and Nasdaq gained 3.1% and 2.8% respectively.

The big news this week was the Fed's increase in the discount rate but, since it is not the rate the Fed uses as its primary means to control interest rates, the market more or less ignored the announcement. Our Trend Tracking Indexes (TTIs) followed the general direction of the markets and headed further away from their respective trend lines:

Domestic TTI: +3.78%
International TTI: + 3.24%
Hedge TTI: +0.29%

Right now, it appears that the markets have turned around after coming within striking distance of breaking the long term trend lines to the downside. Of course, the big question is whether this rebound will run again into overhead resistance before heading south. Until proven otherwise, my view at this moment is that the downside risk remains greater than upside potential. We continue to hold our remaining positions subject to our sell stops.

Next week will bring more earnings reports, but more importantly, testimony from Fed Chairman Bernanke to say more soothing words about the discount rate increase when he faces lawmakers on Wednesday and Thursday. He is also expected to assure that the federal funds rate, used to determine most U.S. interest rates, will remain steady for the time being. It promises to be an interesting week.

Until next Friday.

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:

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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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