Dividend Stock Action Warranted. READ! Markets (FEDS) hold 10,000. Update Feb 5, 2010

BLOOMBERG:
As Greece tries to control a record deficit and stem a slide in its bonds, Trichet said the economy of the 16-nation euro area is solid and its budget shortfall will probably be smaller than those of the U.S. and Japan this year. The comments yesterday didn’t stop Spanish and Portuguese stocks from dropping on concern they are in a similar predicament to Greece, or the euro from tumbling to a nine-month low against the dollar.

Marc’s Notes:
Just like we warned. To get out of the Euro. We said sell the Euro and took it off our list of currencies to own over a year ago because too many nations participate in it and it only takes one little country to screw it up for everyone and wha-la. Greece is first to spoil the party. Spain may be next. That’s why we say to own only Aussie Dollars, Canadian Loonies and Swiss Francs. We recently said SELL and DO NOT BUY the Japanese Yen so our list of acceptable currencies is getting shorter. The Japanese just plain keep printing it and have said they will continue to do so to shore up OUR dollar. Enough for me. Hold no yen.

As for today’s market, a funny thing happened on the way to forum. A DOW close below 10,000.00 was a technical thing to be avoided at all costs, ESPECIALLY on a Friday.
So, at about 12.00 noon PST today, about an hour before the close of the market, a mysterious “rally” began taking the Dow to 10,012 to close over 10,000 for the week.
Holy Cow.
Could a FED induced rally be more obvious? These guys know the same technical dangers of a Dow closing below 10,000 on a Friday as we do so in they went. This market is SO MANIPULATED it makes me want to lose my lunch. So be it. Look for Sunday night Dow futures to probably be UP so they can try and kindle a rally here. The line in the sand for now is 10,000. A close below that today would have spooked the weekend newspaper readers leading to a tumble again on Monday. Now everyone can point to the end of the day rally and claim the markets fall is over. What baloney.

For now, we look to Monday. All investors who hold more then 20 % of your money in stocks, place STOPS in 5 % below today’s level. (Enter a STOP, NOT a STOP LIMIT) or call your broker and ask him to do it on all stocks except contrary stocks.
If you own less then 20 % of your money in stocks, then put stops in at least SOME of your positions.
Market alert level is ORANGE until we see a DOW over 10,300 minimum. If the DOW breaks and closes below 10,000 next week, man the lifeboats and batten down the hatches. A massive correction COULD be coming.

Meanwhile, Obama plans more bailouts, the FEDS funnel billions more to the banks, and taxes are rising. Gold is getting hammered as we mentioned it would in a market fall and told you to stand aside on all gold and silver stocks a few weeks back. Physical gold and silver is always added for insurance however. (Gold and Silver in your possession).
Today I added some OIL in the form of options as USO hit 35, my buy point. I only added a small position. I will sell it and natural gas on any 10% pop and keep the rest of my money in cash for future pullbacks. As mentioned in the last newsletter, I sold and stopped out 10 % of my stocks last week and this week and added SCC as a short contrary fund and it is up about 5 %  since I added it on Monday . I will sell SCC with a stop out if the market rallies and pocket a quick profit. I will NOT add any dividend payers or other stocks until later.
I upped my cash position by selling a boatload of dividend payers on stops as the market fell and am happy holding cash and taking some profits off the table. You should consider the same. Holding a basket of mutual funds your broker sold you? Reconsider.
Cash is king. Make it your main position for now.

It all hinges on next week. Look for weekend market news if any, and Monday and Tuesday will be key days. If the markets start DOWN Monday, that’s not good for you mutual fund holders.

Thanks for the support of the show and station KVMR during the last drive. I am scheduling consults as we speak. Website access should be set up by early next week for those opting for the Money Matters Membership access. If you set up for the newsletter, welcome. You will receive these updates whenever I write them. There is also an archive so you can catch up and look for recommendations that may not be on this edition. Past newscasts are free audios that cover past weekly news broadcasts.

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All for now, I will keep you posted.

Marc

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Where I buy some of my gold: What I call “Possession Gold”.

 

Monex Deposit David Feldberg x 2216
4910 Birch St., Newport Beach Ca 92660
1 (800) 949 4653 (GOLD) ext 2216 You may refer to Marc Cuniberti and Money Matters and David will know what Marc recommends.

Take delivery and store in a safe place. You may have 25 % of this amount in silver and the remaining 75% in gold. I usually buy only generic 1 ounce rounds or ounce bars, no collectibles. You may buy any 99 % pure gold or silver assets but pay no more then a few percentage points over spot. Again, buy NO Collectibles, No Margin account, No Commodity accounts. Take delivery of standard coins only.

 

JH MINT
13241 Grass Valley Ave.
Grass Valley, Ca 95945 (530)273-8175

(Near the Grass Valley Airport off Loma Rica Road)

Tell the salesperson you are a Money Matters Listener and you will get special discounts,(market conditions permitting). Normal Gold prices are anywhere from 6 to 11% over New York Spot price. If you are selling, you should get close to spot when you sell. Buy only standard, or popular gold or silver coins. I do NOT prefer the generics but would rather have you buy Silver Eagles or bars. When buying silver, the mark up will be a bit higher than gold. JH Mint posts prices on its board over the sales counter so you can see spot at any time. I have dealt with JH MINT myself and found them to be easy to work with.  You can pay in cash and you will remain anonymous.

I usually buy Gold Eagles, Buffalos, Kruggerands, Silver Maples. Gold Pandas Generic Rounds. Peace Dollars or Morgans. You may also use my web contact:


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