I did add additional long exposure yesterday due to oversold conditions and the higher volume buying of Tuesday but I’m prepared to abandon ship in a hurry. As you know you have to be quick in this market and not afraid to quickly shift your portfolio. We are just 12 points away from that critical S&P500 level again at 740, so I’ll be watching that level closely. If we stall out again tomorrow morning, I may be proactive and close out a few long positions. One candidate is OMTR due to the higher volume reversal today. I still like this company very much but it is a small cap growth stock and if this market is going to take a sharp leg down, those will get hit hard. The other candidate is the QLD trade. <\/em> <\/p>\n I don’t want to sound too alarming. I just feel like after two days of late day sell offs we may need to make one last decisive plunge lower before this market can get moving up again for a sustained period. The good news is that following a 60% plunge in the market over the past year and a half, this market WILL stage a furious relief rally and I do believe it will happen within the next couple months.”<\/em> <\/p>\n ::::::::::::::::::::::::::::::::::::::::::: <\/p>\n Isn\u2019t Time You Took Control of Your Financial Future?<\/font><\/strong> <\/p>\n The Self Investors Model Portfolio wrapped up 2006 with a gain of 27.6%<\/strong>, 2007 with a gain of 30.2%, <\/strong>finished nearly 35% ahead of the S&P in a very difficult 2008 and is off to a great start here in 2009, ahead of the S&P YTD performance by 17%<\/strong>. This is a REAL portfolio with position sizing and not based on extrapolated hypothetical gains for each trade. On average it beats the S&P by 20% per year. The result? <\/p>\n * Putting $100K into an S&P tracking index at the beginning of 2004 and you\u2019re down more than $35K. Would you like to receive buy and sell alerts in the Model Portfolio within minutes (NEW!<\/strong> now get them via instant messaging in near real time) of each transaction? You can receive these along with ALL of the tracking tools and video reports with the very popular Gold membership. Don\u2019t delay, get started today and join me for many more highly profitable months here at SelfInvestors.com. <\/p>\n ::::::::::::::::::::::::::::::::::::::::::: <\/p>\n Let\u2019s take a look at the indices.. <\/p>\n The S&P500 wasn’t able to hold the November lows on Friday and on a weekly basis, it closed at the lows with heavy volume. The momentum remains clearly down until a massive reversal takes place. I believe there is a very good chance of testing the 700 level in the S&P. <\/p>\n In my last report, I wasn’t convinced the Nasdaq needed to retest the lows around 1300, but I’m becoming a believer that it needs to happen. Note the double bottom base. <\/p>\n The Dow continued its slide into the abyss, took out the November lows and is closing in on the absolute low of the 2002 crash and burn around 7200. I believe a test of 7000 is a near certainty at this point, especially if the Dow doesn\u2019t get back above 7500 in a hurry. At the 7000 level keep an eye out for capitulation. <\/p>\n ::: Best\/Worst Performers :::<\/strong> <\/p>\n – Top 10 Performing Industries For the Week –<\/strong> <\/p>\n 1. Banks – Midwest: 18.30% – Top 10 Worst Performing Industries For the Week –<\/strong> <\/p>\n 1. Home Health Care: -24.35% – Top 5 Best Performing ETFs For the Week –<\/strong> 1. HLDRS Regional Banks (RKH) 14.75% – Worst 5 Performing ETF\u2019s –<\/strong> <\/p>\n 1. iShares US Healthcare Providers (IHF) -17.70% ::: Upcoming Economic Reports (3\/2\/2009- 3\/6\/2009) :::<\/strong> <\/p>\n Monday: Personal Income\/Spending, Core PCE, Construction Spending, ISM Index ::: Earnings I\u2019m Watching This Week :::<\/strong> <\/p>\n Monday: Cellcom Israel (CEL), The Hospitalist Co (IPCM), Perfect World (PWRD), Tower Group (TWGP), Vision China Media (VISN) <\/p>\n Tuesday: Energy Recovery (ERII), Trina Solar (TSL) <\/p>\n Wednesday: Mindray Medical (MR) <\/p>\n Thursday: ArcSight (ARST), Fuel Systems Solutions (FSYS), Fuel Tech (FTEK), Shenandoah Telecom (SHEN), Urban Outfitters (URBN <\/p>\n Friday: PetroBras (PBR) <\/p>\n","protected":false},"excerpt":{"rendered":" I have to admit I was turning a bit optimistic there in the middle of the week when the market rallied on the Bernanke testimony, indicating the government wasn’t interested in wiping out Citi shareholders (although at $1.50 that’s essentially what’s happened) and that he was optimistic of a recovery in the economy within a … Continue reading Mr Market Gives Thumbs Down to Obama’s Big Goverment Budget, Dow Likely To Test 6500<\/span>
* The Self Investors Model in the same time period would have more than doubled your money. That\u2019s the power of not buying and holding! <\/p>\n![\"22809_sp500\"](\"http:\/\/selfinvestors.com\/tradingstocks\/wp-content\/uploads\/2009\/03\/22809-sp500.gif\")
<\/a> <\/p>\n<\/a> <\/p>\n<\/a> <\/p>\n
2. Banks – SE: 9.85%
3. Semis – Memory Chips: 8.40%
4. Banks – NE: 7.65%
5. Banks – Mid Atlantic: 7.20%
6. Broadcasting – Radio: 6.00%
7. Movie Production – Theaters: 5.50%
8. Sporting Goods: 4.60%
9. Home Improvement Stores: 3.80%
10. Money Center Banks: 3.75 <\/p>\n
2. Health Care Plans: -24.05%
3. Textile Manufacturing: -19.50%
4. Long Term Care Facilities: -17.00%
5. Specialized Health Services: -13.90%
6. Printed Circuit Boards: -13.30%
7. Aerospace\/Defense: -12.90%
8. Silver: -12.05%
9. Drugs – Wholesale: -11.60%
10. Medical Instruments & Supplies: -11.25 <\/p>\n
(excluding leveraged ETFs) <\/p>\n
2. SPDR Series Trust (KBE) 11.80%
3. US Oil Fund (USO) 11.10%
4. iShares Commodities (GSG) 7.40%
5. Market Vectors Russia (RSX) 4.90% <\/p>\n
2. SPDR Health Care (XLV) -11.15%
3. iShares Health Care (IYH) -10.60%
4. iShares Global Health Care (IXJ) -10.60%
5. Market Vectors Steel (SLX) -10.05% <\/p>\n
Tuesday: Pending Home Sales, Auto\/Truck Sales
Wednesday: ADP Employment, ISM Services, Fed Beige Book, Crude Inventories
Thursday: Productivity, Initial Claims, Factory Orders
Friday: Nonfarm Payrolls, Unemployment Rate, Consumer Credit <\/p>\n