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#1 TTHQ Staff

TTHQ Staff

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Posted 01 November 2010 - 03:47 PM

Posted Image The VRTrader.com VR Silver Newsletter - Monday 11/1/2010
"Tools for the High Performance Trader"
Copyright ©2010, All rights reserved.
Redistribution in any form is strictly prohibited. LEIBOVIT FILES | by Mark Leibovit Leibovit Files
Monday, November 01, 2010
Volatility Likely Ahead, Folks - But The TREND Is Higher


--------------------------------------------
Commentary below from TIMER DIGEST's #1 Intermediate Market Timer for the 10-year period ending in 2007 - Mark Leibovit
--------------------------------------------

Current TIMER DIGEST Signals:

Stocks - Bull
Gold - Bull
Bonds - Neutral

--------------------------------------------
UPCOMING ECONOMIC RELEASES/MARKET EVENTS
NOVEMBER 1 - 5, 2010:
--------------------------------------------
MONDAY, NOVEMBER 1:

PRE-MARKET EARNINGS:
Corning, Humana, IntercontinentalExchange

Personal Income and Outlays
8:30 AM ET

ISM Mfg Index
10:00 AM ET

Construction Spending
10:00 AM ET

4-Week Bill Announcement
11:00 AM ET

10-Yr TIPS Announcement
11:00 AM ET

3-Month Bill Auction
11:30 AM ET

6-Month Bill Auction
11:30 AM ET

POST-MARKET EARNINGS:
Anadarko Petro, Rogers Corp, Winn-Dixie Stores

--------------------------------------------
TUESDAY, NOVEMBER 2:

Turnaround Tuesday

Election Day. Remember to vote.

PRE-MARKET EARNINGS:
Archer-Daniels, Clorox, Kellogg, Martin Marietta, MasterCard, NYSE Euronext, Teva Pharma

Motor Vehicle Sales

ICSC-Goldman Store Sales
7:45 AM ET

Redbook
8:55 AM ET

4-Week Bill Auction
11:30 AM ET

POST-MARKET EARNINGS:
Denny's, Wynn Resorts

--------------------------------------------
WEDNESDAY, NOVEMBER 3:

PRE-MARKET EARNINGS:
CVS Caremark, MGM Resorts, Pulte Homes, SPX Corp

MBA Purchase Applications
7:00 AM ET

Challenger Job-Cut Report
7:30 AM ET

ADP Employment Report
8:15 AM ET

Treasury Refunding Announcement
9:00 AM ET

3-Yr Note Announcement
9:00 AM ET

10-Yr Note Announcement
9:00 AM ET

30-Yr Bond Announcement
9:00 AM ET

Factory Orders
10:00 AM ET

ISM Non-Mfg Index
10:00 AM ET

EIA Petroleum Status Report
10:30 AM ET

FOMC Meeting Announcement
2:15 PM ET

POST-MARKET EARNINGS:
Con-way, Kenneth Cole, Prudential, Whole Foods

--------------------------------------------
THURSDAY, NOVEMBER 4:

PRE-MARKET EARNINGS:
DIRECTV, Health Net, Time Warner Cable

Chain Store Sales

Monster Employment Index
6:00 AM ET

Jobless Claims
8:30 AM ET

Productivity and Costs
8:30 AM ET

EIA Natural Gas Report
10:30 AM ET

3-Month Bill Announcement
11:00 AM ET

6-Month Bill Announcement
11:00 AM ET

10-Yr TIPS Auction
1:00 PM ET

Treasury STRIPS
3:00 PM ET

Fed Balance Sheet
4:30 PM ET

Money Supply
4:30 PM ET

POST-MARKET EARNINGS:
CF Industries, Fluor, Kraft Foods, Starbucks

--------------------------------------------
FRIDAY, NOVEMBER 5:

PRE-MARKET EARNINGS:
Beazer Homes, DISH Network

Pending Home Sales Index

Employment Situation
8:30 AM ET

Thomas Hoenig Speaks
9:30 AM ET

Consumer Credit
3:00 PM ET

--------------------------------------------
STOCKS - ACTION ALERT -

The market bounced bath and forth on Friday, just as it did the other four days of the week, and closed mixed. The market got weaker than expected GDP data and consumer sentiment but that was offset by a stronger than expected Chicago PMI. More important, traders were focused on earnings reports and are looking forward to Tuesday's election, the quantitative easing expected to be announced Wednesday, and monthly unemployment report on Friday. This uncertainty is causing traders to wait on the sidelines for a better signal on the direction of this market, economy, and nation. The Dow Jones Industrial Average closed up 4.54 points, or 0.04%, to 11118.49. The technology-heavy Nasdaq Composite rose 0.04 to 2507.41 while the S&P 500 fell 0.52 to 1,183.26. Breadth was positive but volume was very sluggish.

It's a no-brainer in my opinion. Equity and commodity markets are going to go higher as Bernanke is forced sooner or later to increase the tempo of QE. If he hints he is slowing downt he pace, in my opinion its a lie simply to distract the markets. The Fed has been notorious for saying one thing and doing another. We already know trillions of dollars have been 'donated' to unknown recipients and since we have no transparency we can only assume the money has gone to appease those who have threatened to curtail the financial system. Could it be the Chinese or is it simply other 'banksters'?

So, if we see a market correction, downside risk in the S&P 500 is maximum 1140 - which is still nasty I suppose. However, it will be a great buying opportunity for a move which should first carry the S&P 500 to 1220 and, believe it or not, to 1400-1500 before mid 2012. We could see 1220 first! Interest rates will likely rise during the months ahead (along with commodity prices) and if hedge fund manager, John Paulson, is correct (see article below), you should be running out and buying houses.

--------------------------------------------
Here is an August 29, 2010 article from Bloomberg:

Bloomberg Wins Its Lawsuit Against the Federal Reserve


"Score one for Bloomberg in its lawsuit seeking to force the federal government to disclose who it's bailing out with trillions of our dollars. Yes, the federal government has-incredibly-been trying to conceal that.

A federal judge in U.S. District Court ruled in favor of Bloomberg, saying the Federal Reserve must release the names of the entities it has lent money to. Bravo to Judge Loretta Preska, who ruled that the the Fed "improperly withheld" the records from Bloomberg.

The Fed has five days to give Bloomberg the records it found but didn't turn over and has to also look for similar records at the New York Fed to turn over-though, presumably, it will delay this as long as it can with appeals.

The Fed had refused to name the financial firms it lent to or disclose the amounts or the assets put up as collateral under 11 programs, most put in place during the deepest financial crisis since the Great Depression, saying that doing so might set off a run by depositors and unsettle shareholders. Bloomberg LP, the New York-based company majority-owned by Mayor Michael Bloomberg, sued on Nov. 7 on behalf of its Bloomberg News unit.

It's unclear whether the ruling forces the Fed to disclose the collateral it has accepted in exchange for the loans. If it is, this is a huge story. And anyway it's good anytime the veil is lifted on the secretive and undemocratic Federal Reserve."
--------------------------------------------
Materials were the biggest movers on Friday (XLB +0.81%) as metal prices rose sharply. Healthcare was the worst performer (XLV -0.42%) after Merck reported earnings Friday morning. Nevertheless, most sectors didn't move much. We did see a very slight move toward risk on Friday as Small Caps (IWM +0.31%) outperformed Large Caps (SPY +0.08%).

While the sideways action continued for a second week on most of the major indexes, the NASDAQ 100 and NASDAQ Composite both hit 6-month highs as Technology (XLK +0.16%) continued to slowly work its way higher following Microsoft's strong earnings report.

--------------------------------------------
DOW TRANSPORTS - ACTION ALERT -

Transportation stocks outperformed on Friday as oil prices fell. The Dow Jones Transportation Average gained 20.11 or 0.42% to 4754.29.

--------------------------------------------
GOLD and METALS - ACTION ALERT -

Precious metals rallied after the weaker than expected economic reports which boosted the chances of quantitative easing next week. A weak Dollar also helped the precious metals. Gold broke through resistance at the 1350 level, closing at 1359.60 up 15.50. The next challenge is the 1388 high. Silver gained 0.71 to 24.74. Interestingly, the Silver ETFs (SILV, my favorite, and SLV) traded into new bull market highs on Friday. Platinum rallied 14 to 1703. Palladium jumped 22 to 646 and hit a 10-year high of 652. However, copper dropped 0.0540 to 3.7335.

Silver and Palladium, therefore, are the two strongest markets.

Asian central banks are interested in
buying gold on dips, to rebalance their FX-stash away from the US-dollar and other
paper trash.
--------------------------------------------
URANIUM - ACTION ALERT

Ux U3O8 Prices* (Uranium)
October 25, 2010 Posting
Spot: $52.00 UP 2.75. Bull market high in the cash market was $138.00.

The December Uranium Futures closed at $51.25. Uranium futures recent his a new bear market low of 40.00. June 13, 2007 hosted the bull market high of 154.95. Major support lies well under the market at $36.00.

The spot price of uranium quadrupled from 2004 to 2007. When it hit $138/lb, uranium became a certified bubble, which has now burst.

--------------------------------------------
BONDS - ACTION ALERT -

Treasuries rallied on Friday after the weak GDP and consumer sentiment reports. Along with low inflation within the GDP report, this gives the Federal Reserve more ammunition to start another a bond-buying program next week. The long bond future gained 23/32 to 130 30/32.

Volume has been negative in the two key ETFs I track, TLT and IEF, telling me that interest rates should be moving higher in the months ahead. I know this doesn't make sense considering the state of the economy and lending, but markets are apparently pricing in inevitable inflation.

Yields on 10-year notes fell 5 basis points to 2.61%. Yields on 2-year notes declined 3 basis points to 0.34%. They again touched the all-time low of 0.33% during U.S. trading hours. Thirty-year bond yields declined 5 basis points to 4%.

--------------------------------------------
CRUDE OIL - ACTION ALERT -

Oil declined Friday as energy traders stayed cautious ahead of the Federal Reserve's meeting next week and the day's crop of economic data painted a dimmer picture of the economy.. Crude oil dropped 0.75 to 81.43.

As I've said, Crude should follow other commodities higher with potential to 90.00. Officially, however, I have no positions here.

Natural gas continues to recover after hitting a record low on Monday. December natural gas rose 0.148 to 4.038 on Friday and has rallied 15.4% since hitting a low of 3.500 on Monday. Volume is positive and aggressive traders may wish to buy keeping a stop under recent lows, but its a bit early to confirm an important bottom. Watching like a hawk, though!

--------------------------------------------
US DOLLAR - ACTION ALERT -

The US Dollar Index finished little changed on Friday as trader wait for new from the FOMC next week. The US Dollar Index declined 0.042 to 77.266.

Commentators are holding their breadth regarding an imminent rally in the U.S. Dollar. Anything is possible, but my view remains the same: the Dollar is terminal. A technical bounce to 80-81 is certainly not out of the realm of possibility, but I would rather bet on seeing new lows. Watch the current 76.144 to 78.364 trading range for clues.

European Union leaders Friday agreed to tighten budget rules governing the euro zone in an effort to prevent a repeat of the Greece-led sovereign crisis that jolted the region earlier this year. The stricter rules, crafted by the finance ministers of the 27-nation block, include a permanent debt-crisis mechanism as well as new sanctions for countries that let deficits spiral out of control. The decision will be seen as a victory for German Chancellor Angela Merkel. Ever since the Greek shock, Germany has advocated the creation of a permanent system that would allow for an orderly default procedure in cases where countries find themselves in a sovereign-debt crisis. The Euro slipped 0.04% against the Dollar.

--------------------------------------------
ECONOMIC NEWS:

The U.S. economy had a small acceleration in the third quarter as consumer spending picked up, the Commerce Department reported Friday. Real gross domestic product rose at a 2.0% annualized rate in the third quarter, up from a 1.7% increase in the second quarter. Economists had expected a slightly stronger 2.1% growth rate. The big story for the third quarter was in the consumer sector, where spending rose to a 2.6% rate, the fastest pace since the fourth quarter of 2006. Business spending slowed in the third quarter and housing was a drag. Inventories added to GDP growth while trade subtracted from growth. Consumer prices rose 1%, while core consumer prices, which exclude food and energy, grew by 0.8%.

The employment cost index for civilian workers increased 0.4% on a seasonally-adjusted basis between June and September, the Bureau of Labor Statistics said. For the year ended Sept. 2010, compensation costs rose 1.9%, wages and salaries rose 1.5% and benefit costs rose 2.7%.

The Chicago PMI in October rose to 60.6 from 60.4, a stronger reading than expected. Expectations were for a reading of 57.0.

U.S. consumer sentiment fell to 67.7 in October from 68.2 in September, according to a survey released Friday by Reuters and the University of Michigan. A prior estimate for sentiment in October was 67.9. Economists had expected a final October reading of 68.5. Worry over jobs has weighed down consumers. The average level of the index was around 88 prior to the most recent recession.

--------------------------------------------
CORPORATE NEWS:

Microsoft reported fiscal first-quarter profit of $5.4 billion, or 62 cents a share, from $3.6 billion or 40 cents a share, in the same period last year. Revenue rose 25% to $16.2 billion stemming from widespread adoption of the latest version of its Windows operating systems. Analysts had expected earnings of 55 cents a share on $15.8 billion in revenue. MSFT rose 1.46%.

Chevron said its third-quarter net income fell to $3.77 billion, or $1.87 a share, from $3.83 billion, or $1.92 a share, in the year-ago period. Foreign currency effects cost the company $367 million in the quarter. Revenue rose to $49.7 billion from $46.6 billion. Wall Street analysts expected Chevron to earn $2.16a share. Production rose 1% to 2.74 million barrels a day. Chevron plans to buy back $500 million to $1 billion in stock per quarter, starting in the fourth quarter. CVX declined 2.18%.

Merck said its third-quarter earnings fell by 90% to $341.6 million, or 11 cents a share, from $3.4 billion, or $1.61 a share, in the year-ago period. Excluding a $950 million legal reserve payment, restructuring costs and other items, Merck earned 85 cents a share in the latest quarter. The drug giant's revenue increased by 84% to $11.1 billion, from $6.1 billion. Wall Street analysts expected Merck to earn 83 cents a share, on revenue of $11.47 billion. Merck said it upped the low end of its adjusted 2010 earnings outlook to a range of $3.31 a share to $3.39 a share. MRK fell 1.71%.

MetLife said third-quarter net income came in at $286 million, or 32 cents a share, versus a net loss of $650 million, or 79 cents a share, in the same period a year earlier. Operating earnings, which exclude net realized investment gains and losses, were $878 million, or 99 cents a share, in the latest quarter. MetLife was expected to make $1.03 a share. Premiums, fees and other revenue totaled $8.64 billion in the period, up 2% from a year ago. MET slipped 0.32%.

Weyerhaeuser said it posted a $1.12 billion, or $3.50 a share profit in the third quarter, compared to a breakeven net income figure a year ago. Revenue at the firm rose to $1.66 billion, from $1.41 billion a year ago. The company said third quarter 2010 earnings $1.04 billion from income tax adjustments, primarily related to the reversal of deferred taxes as a result of Weyerhaeuser's conversion to a real estate investment trust. Excluding the tax gain, the company earned $81 million or 25 cents a share in the third quarter. WY jumped 3.38%.

Consumer and commercial product maker Newell Rubbermaid reported a 67% drop in third-quarter net income to $28.3 million, or 9 cents a share, against $85.5 million, or 28 cents. Adjusted earnings for the quarter were 42 cents against 38 cents. The company reported net sales of $1.49 billion against $1.45 billion in the year-ago period. Analysts were forecasting net income of 41 cents on revenue of $1.49 billion. The company reaffirmed its full-year guidance for 2010, including net sales growth in the low mid-single digit range and core sales growth in the mid-single digits, diluted earnings of 83 cents to 93 cents. NWL lost 0.84%.

Expedia reported that third-quarter earnings leapt 51% to $176.6 million, or 62 cents a share, from $117 million, or 40 cents a share. Adjusted earnings were 66 cents a share. Revenue grew 16% to $987.9 million. Wall Street pegged earnings at 62 cents a share on revenue of $944 million. EXPE was down 0.65%.

Coinstar said its third-quarter profit fell to 60 cents a share from $1.34 a share in the year-ago period, but still beat the 50 cents a share expected by analysts. Revenue for the company, which owns and operates self-automated coin machines and a DVD business, rose 42% to $380.2 million. The company cited strength in its DVD revenue for the quarter, which grew 54.2% from the year-ago period. CSTR rallied 24.47%.

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Listen to my Michael Campbell interview on 'Money Talks' on Saturday morning, September 25. Use the following link to the CKNW 'Audio Vault' and set the hour at 9:00 AM.

http://www.cknw.com/...audiovault.html
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Canadian TSX, TSX Venture and Canadian Dollar Commentary for our Canadian clients updated for Monday, November 1:

The Canadian market moved sharply higher on Friday as all sectors rallied after the government reported strong economic growth for August. Rising metal prices are also lifting the indexes. The TSX gained 112.15 or 0.89% to 12676.24, nearing resistance at the 12710.19 high set on October 13.

Upside targets of 12,900 and 13,400 remain intact with downside risk of 12,200 at this time.

Molybdenum producer Thompson Creek jumped 12 percent, the most in 15 months, to C$12.28 after the China Securities Journal, citing an unidentified person, said the country is preparing to classify molybdenum as a national mining resource. China is the world's largest producer of the metal used in steelmaking, according to the U.S. Geological Survey.

Silver Standard Resources Inc., which explores in Latin America, rallied 3.1 percent to C$24.80 after announcing the sale of two Canadian projects for C$450 million.

Ivanhoe Energy Inc., owner of the Tamarack oil sands project, jumped 14 percent, the most in eight months, to C$2.64. On Thursday, the company said it had produced oil from its second appraisal well at the Pungarayacu field in Ecuador, calling the result "an historic event."

Canadian Oil Sands Trust, the largest owner of the Syncrude project, slumped 4.2 percent to C$25.56 after reporting third- quarter cash flow that Brian Dutton, an analyst at Credit Suisse Group AG, said was in line with analysts' forecasts.

Potash Corp. of Saskatchewan Inc. increased 1.03 percent after the newspaper, quoting sources close to the government, said Canada is "leaning toward" approving BHP's takeover bid for the company.

Canada's gross domestic product grew as expected in August after shrinking the month before, led by wholesaling and manufacturing. Output rose 0.3 percent to a seasonally adjusted annual rate of C$1.24 trillion ($1.21 trillion) in August following a 0.1 percent contraction in July.

Energy 287.95 2.11 (0.74%)
Financials 179.41 1.44 (0.81%)
Health Care 50.32 0.85 (1.72%)
Industrials 107.53 1.25 (1.18%)
Info Tech 29.41 0.25 (0.86%)
Metals & Mining 1,235.28 11.54 (0.94%)
Telecom 91.22 0.10 (0.11%)
Utilities 212.65 0.20 (0.09%)

Resistance 12,710, 12,900, 13,173, 13,400, 13,771, 13,875, 13,983, 14,157. Support is 12,200-12,300, 12,055, 11,750, 11,480, 11,380, 11,065, 10,990, 10,800, 10,600, 10,400, 10,384, 9500, 9300, 9140.
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CANADIAN TSX Venture:

Wow! The Venture rallied to another 26-month high as rising metal prices lift the index full of small-cap mining issues. The TSX Venture jumped 24.16 or 1.25% to 1950.31.

Resistance (target) is 1984. Have to calculate to new target when we get there. Meanwhile, the move is becoming a big extended, so I would be careful chasing stocks. Support is 1887, 1806, 1788, 1740, 1666, 1630, 1580, 1500, 1439, 1425, 1375, 1343, 1306, 1231.
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THE CANADIAN DOLLAR (using the FXC Exchange Traded Fund):

The Canadian Dollar rose slightly after economic news in Canada was better than that in the US. FXC gained 0.14 to 97.50. I am still a big bull on the Loonie and am comfortable sitting tight regardless of the risk of any 'nonsense' short-term move in the U.S. Dollar.

Resistance is 99.30, 100.00, 102.00, 110.00. Support is 95.96, 93.20, 92.50 91.82, 91.00, 89.75, 87.50 and 85.18.
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DAILY VR LIST:

Editors note: The Daily VR List here is abbreviated with the full list only available to Platinum subscribers by clicking on 'Current VR List' on the Home Page of VRtrader.com.

Canadian shares are listed at the bottom of each section with the title: 'XXX CANADIAN STOCKS XXX'.

Silver subscribers who find this useful should upgrade to Platinum where you can pull down VR charts for many securities and watch the patterns unfold for yourself. There is no technical service on the planet that posts Positive and Negative VR! Why? Because they are proprietary to VRtrader.com!

How do you use this list?

Volume Reversals ™ are buy and sell triggers and are traders find them particularly useful, especially coming off market extremes as an indication of a change of direction. Use the VRs in conjunction with your other technical indicators and you've added a unique technical tool to your arsenal.

To see a visual representation of Volume Reversals ™, please go our Current Portfolio section and click on any recommended stock. Or, if you would like to get a VR Chart for a specific symbol, please click here. Please note that the list of symbols available is limited at this time.
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VOLUME REVERSALS FOR FRIDAY, OCTOBER 29, 2010:
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POSITIVE VRs:
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.. CANADIAN STOCKS ... Canadian Stocks

ERF.UN ENERPLUS RES FUND
FTS FORTIS INC
HOD HORIZONS BETAPRO NYME
HXU HORIZONS BETAPRO S&P/
MRU.A METRO INC CLASS A SUB CL A
NA.UN NATIONAL BANK OF CANA
POT.UN POTASH CORP
RIM RESEARCH IN MOTION LI
THI.UN TIM HORTON'S
XIC IUNITS COMPOSITE CDN

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U.S. STOCKS:
--------------------------------------------

AEROSPACE/DEFENSE Aerospace/Defense Products & S

AIM Aerosonic Corp
SIF Sifco Industries Inc

AUTOMOTIVE Auto Parts

TRW Trw Automotive Hldgs Corp

AUTOMOTIVE Recreational Vehicles

MPX Marine Products Corp

BANKING Foreign Regional Banks

FBP First Bancorp Holding Co

BANKING Money Center Banks

MTU Mitsubishi UFJ Financial Group
STD Banco Sntndr Cen Hsp Ads

BANKING Regional - Mid-Atlantic Banks

AMNB American Natl Bnkshrs Va
WSFS Wsfs Financial Corp

BANKING Regional - Midwest Banks

BUSE First Busey Corp Cl A

BANKING Regional - Northeast Banks

ACFC Atlantic Coast Fed Corp
ALNC Alliance Financial Corp

BANKING Regional - Pacific Banks

BOCH Bank of Commerce Holdings CA
CWBC Community West Bancshrs

BANKING Regional - Southeast Banks

FBMS First Bancshares Inc (The) (MS
MSL Midsouth Bancorp

BANKING Regional - Southwest Banks

QCRH Qcr Hldgs Inc

BANKING Savings & Loans

BHL Berkshire Hills Bncorp
CHEV Cheviot Financial Corp

CHEMICALS Specialty Chemicals

CBM Cambrex Corp
FTK Flotek Industries Inc

CHEMICALS Synthetics

APFC American Pacific Corp

COMPUTER HARDWARE Computer Based Systems

CCUR Concurrent Computer Corp

COMPUTER HARDWARE Computer Peripherals

ZBRA Zebra Technologies Cp A

COMPUTER SOFTWARE & SERVICES Application Software

BMC Bmc Software Inc

COMPUTER SOFTWARE & SERVICES Business Software & Services

CNIC Copernic Inc Common Stock
EPIQ Epiq Systems Inc

COMPUTER SOFTWARE & SERVICES Healthcare Information Service

CAP Creative Computer Applic
HMSY Hms Holdings Corp

COMPUTER SOFTWARE & SERVICES Information Technology Service

NSTC Ness Technologies Inc

COMPUTER SOFTWARE & SERVICES Technical & System Software

ALLT Allot Communications Ltd
SNX Synnex Corp

CONSUMER DURABLES Business Equipment

EFOI Energy Focus Inc
VIRC Virco Manufacturing Cp

CONSUMER DURABLES Electronic Equipment

DISH Echostar Communications Corp

CONSUMER DURABLES Toys & Games

HAS Hasbro Inc

CONSUMER NON-DURABLES Office Supplies

CRRC Courier Corp

CONSUMER NON-DURABLES Packaging & Containers

BLL Ball Corp

CONSUMER NON-DURABLES Paper & Paper Products

NSH Nashua Corp

CONSUMER NON-DURABLES Personal Products

EL Estee Lauder Cos Inc

CONSUMER NON-DURABLES Rubber & Plastics

CSL Carlisle Companies Inc
FORD Forward Industries Inc

CONSUMER NON-DURABLES Textile - Apparel Clothing

RL Polo Ralph Lauren Corp

CONSUMER NON-DURABLES Textile - Apparel Footwear & A

HLYS Heelys Inc

DIVERSIFIED SERVICES Business/Management Services

ARBX Arbinet-thexchange
BIDZ Bidz.com Inc

DIVERSIFIED SERVICES Consumer Services

LOV Spark Networks plc

DIVERSIFIED SERVICES Education & Training Services

STRA Strayer Education Inc

DIVERSIFIED SERVICES Personal Services

CSTR Coinstar Inc
NLCI Nobel Learning Community

DIVERSIFIED SERVICES Rental & Leasing Services

UHAL Amerco

DIVERSIFIED SERVICES Research Services

MAXY Maxygen Incorporated
REFR Research Frontiers Inc

DIVERSIFIED SERVICES Staffing & Outsourcing Service

ASGN On Assignment Inc

DIVERSIFIED SERVICES Technical Services

ENG Englobal Corp
URS Urs Corp

DRUGS Biotechnology

CADX Cadence Pharmaceuticals Inc
CORT Corcept Therapeutics

DRUGS Drug Manufacturers - Other

BIOD Biodel Inc
DUSA Dusa Pharmaceuticals Inc

ELECTRONICS Diversified Electronics

DLB Dolby Laboratories Inc
SFUN Saifun Semiconductors Ltd

ELECTRONICS Printed Circuit Boards

MFLX Multi-fineline Electronix Inc

ELECTRONICS Scientific & Technical Instrum

ALOG Analogic Corp
CGNX Cognex Corp

ELECTRONICS Semiconductor - Broad Line

GSIT GSI Technology Inc

ELECTRONICS Semiconductor - Memory Chips

MIPS Mips Technologies Inc

ELECTRONICS Semiconductor Equipment & Mate

ACLS Axcelis Technologies Inc
CREE Cree Incorporated

ENERGY Independent Oil & Gas

APU Amerigas Partners L.P.
EPD Enterprise Products Part

ENERGY Oil & Gas Drilling & Explorati

BDE Bois d'Arc Energy
ERF Enerplus Resources Fund

ENERGY Oil & Gas Equipment & Services

EXXI Energy XXI (Bermuda) Limited
FXEN Fx Energy Inc

ENERGY Oil & Gas Pipelines

NS Nustar Energy L.P.
SXL Sunoco Logistics Ptnrs Lp

ENERGY Oil & Gas Refining & Marketing

ETP Energy Transfer Pntr Lp

FINANCIAL SERVICES Asset Management

MERR Merriman Curhan Ford Group Inc
MORN Morningstar Inc

FINANCIAL SERVICES Closed End Fund - Debt

ACG Acm Income Fund
BKK Blackrock Muni 2020

FINANCIAL SERVICES Closed End Fund - Equity

AGG Aggregate Bond
BLU Blue Chip Value Fund Inc

FINANCIAL SERVICES Closed End Fund - Foreign

DFJ WisdomTree Japan SmallCap Fund
DGF Delaware Inv Glbl Div & Inc Fd

FINANCIAL SERVICES Credit Services

CSE Capitalsource Inc
DLLR Dollar Financial

FINANCIAL SERVICES Diversified Investments

ADJ SPX Acclerated Return Note
CCS Comcast Corp

FINANCIAL SERVICES Investment Brokerage - Nationa

COWN Cowen Group Inc

FINANCIAL SERVICES Investment Brokerage - Regiona

AI Arlington Investment Group
GBL Gabelli Asset Management

FOOD & BEVERAGE Beverages - Brewers

ABVC Ambev Companhia de Bebidas das

FOOD & BEVERAGE Farm Products

CALM Cal-Maine Foods Inc

FOOD & BEVERAGE Meat Products

PPC Pilgrim's Pride Corp

FOOD & BEVERAGE Processed & Packaged Goods

FRZ Reddy Ice Holdings Inc
JMBA Jamba Inc

HEALTH SERVICES Health Care Plans

AGP Amerigroup
HNT Healthnet Inc

HEALTH SERVICES Medical Appliances & Equipment

DRAD Digirad Corporation
EDAP Edap Tms Sa Adr

HEALTH SERVICES Medical Instruments & Supplies

CMED China Medical Technologies Inc
LMAT LeMaitre Vascular Inc

HEALTH SERVICES Medical Laboratories & Researc

MTOX Medtox Scientific
PMD Psychemedics Corp

HEALTH SERVICES Specialized Health Services

BIOS BioScrip Inc
HGR Hanger Orthopedic Group

INSURANCE Accident & Health Insurance

EIHI Eastern Insurance Holdings Inc

INSURANCE Property & Casualty Insurance

GLRE Greenlight Cap Re Cl A Ord
SCO Scor Ads

INSURANCE Surety & Title Insurance

FNF Fidelity National Finl

INTERNET Internet Information Providers

NTES Netease.com Inc

INTERNET Internet Service Providers

ESIC Easylink Services
IIJI Internet Initiative Ja

INTERNET Internet Software & Services

PCLN Priceline.com Inc

LEISURE Gaming Activities

GMTC Gametech Internat Inc

LEISURE Restaurants

EAT Brinker International
PFCB P F Chang's China Bistro

LEISURE Specialty Eateries

BDL Flanigan's Enterprse Inc

MANUFACTURING Diversified Machinery

GRC Gorman-Rupp Co

MANUFACTURING Industrial Equipment & Compone

VPF Valpey Fisher Corp

MANUFACTURING Machine Tools & Accessories

HDNG Hardinge Inc

MANUFACTURING Metal Fabrication

GHM Graham Corp

MANUFACTURING Textile Manufacturing

AIN Albany International A

MATERIALS & CONSTRUCTION Heavy Construction

AGX Argan` Inc.

MATERIALS & CONSTRUCTION Lumber

WY Weyerhaeuser Co

MATERIALS & CONSTRUCTION Residential Construction

MDC M.D.C Holdings Inc

MATERIALS & CONSTRUCTION Waste Management

AWX Avalon Holdings Corp

MEDIA Broadcasting - Radio

RC Grupo Radio Centro

MEDIA Marketing Services

CCO Clear Channel Outdoor Holdings

METALS & MINING Aluminum

AA Alcoa Inc

METALS & MINING Industrial Metals & Minerals

PZG Paramount Gold Mining Corp
USEG U.S. Energy Corp Wyo

METALS & MINING Nonmetallic Mineral Mining

BQI Oilsands Quest Inc
TGE TGC Industries Inc

REAL ESTATE Property Management/Developmen

FCEA Forest City Enterprise A
PCE Arizona Land Income Corp

REAL ESTATE REIT - Diversified/Industrial

EXR Extra Space Storage Inc

REAL ESTATE REIT - Residential

AEC Associated Estates Realty
PPS Post Properties Inc

RETAIL Catalog & Mail Order Houses

DLIA dELiA*s Inc

RETAIL Grocery Stores

BSI Blue Square Israel Ltd
GAP Great Atlantic & Pac Tea

RETAIL Home Furnishing Stores

KIRK Kirkland's Inc

SPECIALTY RETAIL Apparel Stores

LTD Limited Brands Inc
ZUMZ Zumiez Inc

SPECIALTY RETAIL Jewelry Stores

TIF Tiffany & Co

SPECIALTY RETAIL Specialty Retail

MED Medifast Inc

SPECIALTY RETAIL Sporting Goods Stores

GOLF Golfsmith International Holdin

TELECOMMUNICATIONS Communication Equipment

ADCT ADC Telecommunications Inc
CMRO Comarco Inc

TELECOMMUNICATIONS Diversified Communication Serv

XING Qiao Xing Univ Telephone

TELECOMMUNICATIONS Processing Systems & Products

GCOM Globecomm Systems Inc
VII Vicon Industries Inc

TELECOMMUNICATIONS Telecom Services - Foreign

CTEL City Telecom Hk Ltd Ads
MTE Mahanagar Telephone Nigam

TELECOMMUNICATIONS Wireless Communications

GRRF China Grentech Corp Limited AD
VIP Vimpel Communication Ads

TRANSPORTATION Shipping

DSX Diana Shipping Inc

UTILITIES Electric Utilities

BKH Black Hills Corp
OPTT Ocean Power Tech Inc

UTILITIES Gas Utilities

EPB El Paso Pipeline Partners

WHOLESALE Computers Wholesale

SCSC Scansource Inc
WSTG Wayside Technology Group Inc

WHOLESALE Drugs Wholesale

BJGP Beijing Medpharm Corp

WHOLESALE Electronics Wholesale

ORBT Orbit International Corp
VOXX Audiovox Corp

WHOLESALE Food Wholesale

DIT Amcon Distributing Co

WHOLESALE Industrial Equipment Wholesale

MIND Mitcham Industries Inc

WHOLESALE Wholesale

VCO Vina Concha Y Toro Ads



--------------------------------------------
NEGATIVE VRs
--------------------------------------------

.. CANADIAN STOCKS ... Canadian Stocks

COS.UN CANADIAN OIL SANDS TR
HOU HORIZONS CRUDE OIL BULL PLUS
HR.UN H&R REAL ESTATE INVES
HXD HORIZONS BETAPRO S&P/TSX BP A
XRE ISHARES CDN S&P/TSX C

--------------------------------------------
U.S. STOCKS:
--------------------------------------------

AEROSPACE/DEFENSE Aerospace/Defense Products & S

COL Rockwell Collins Inc
CW Curtiss Wright Corp

AUTOMOTIVE Auto Parts

SPW Spx Corp

AUTOMOTIVE Trucks & Other Vehicles

SPAR Spartan Motors Inc

BANKING Foreign Regional Banks

BAP Credicorp Ltd
KB Kookmin Bank

BANKING Money Center Banks

NBG National Bk Greece Ads
UBS Ubs Ag Ord. Shares

BANKING Regional - Mid-Atlantic Banks

ANCX Access National Corp
FCNCA First Citizens Bancshr A

BANKING Regional - Midwest Banks

LKFN Lakeland Financial Corp
LNBB Lnb Bancorp

BANKING Regional - Northeast Banks

VIST Vist Financial Corp

BANKING Regional - Pacific Banks

BSRR Sierra Bancorp
PFBC Preferred Bank Los Angeles

BANKING Regional - Southeast Banks

BTFG Banctrust Financial Group Inc
CFNL Cardinal Financial Corp

BANKING Regional - Southwest Banks

CFR Cullen Frost Bankers
COBZ Cobiz Ixstorm.com Inc New

BANKING Savings & Loans

AF Astoria Financial Corp
ATBC Atlantic Bancgroup Inc

CHEMICALS Agricultural Chemicals

SMG Scotts Miracle-Gro Company
SYT Syngenta Ag

CHEMICALS Synthetics

SHI Shanghai Petrochemical

COMPUTER HARDWARE Computer Based Systems

MXWL Maxwell Technologies Inc

COMPUTER HARDWARE Computer Peripherals

IN Intermec Inc

COMPUTER HARDWARE Networking & Communication Dev

CSCO Cisco Systems Inc
EZCH Lanoptics Ltd

COMPUTER SOFTWARE & SERVICES Application Software

PVSW Pervasive Software Inc
RNOW Rightnow Technologies Inc

COMPUTER SOFTWARE & SERVICES Business Software & Services

ASUR Forgent Networks
CSGP Costar Group Inc

COMPUTER SOFTWARE & SERVICES Healthcare Information Service

QSII Quality Systems Inc

COMPUTER SOFTWARE & SERVICES Information & Delivery Service

RDCM Radcom Ltd

COMPUTER SOFTWARE & SERVICES Technical & System Software

BSQR Bsquare Corporation
NATI National Instruments Cp

CONGLOMERATES Conglomerates

GY Gencorp Inc

CONSUMER DURABLES Electronic Equipment

PC Panasonic Corporation
PHG Koninklijke Philips Elec

CONSUMER DURABLES Home Furnishings & Fixtures

FBN Furniture Brands Intl
NTZ Natuzzi S.p.a.

CONSUMER DURABLES Housewares & Accessories

LANC Lancaster Colony Corp
NWL Newell Rubbermaid Inc

CONSUMER DURABLES Toys & Games

MAT Mattel Inc

CONSUMER NON-DURABLES Packaging & Containers

SLGN Silgan Holdings Inc

CONSUMER NON-DURABLES Paper & Paper Products

NP Neenah Papers Inc
SWM Schweitzer Mauduit Internation

CONSUMER NON-DURABLES Rubber & Plastics

ATR Aptargroup Inc
TG Tredegar Corporation

DIVERSIFIED SERVICES Business/Management Services

ACN Accenture Ltd
AM American Greetings Cp A

DIVERSIFIED SERVICES Education & Training Services

APOL Apollo Group Inc Cl A
LINC Lincoln Educational Services C

DIVERSIFIED SERVICES Personal Services

PPD Pre-Paid Legal Svcs Inc
STEI Stewart Enterprises Cl A

DIVERSIFIED SERVICES Rental & Leasing Services

HTZ Hertz Global Holdings Inc
UCO Universal Cmprssn Hldgs

DIVERSIFIED SERVICES Research Services

CBLI Cleveland BioLabs Inc

DIVERSIFIED SERVICES Security & Protection Services

CKP Checkpoint Systems Inc

DIVERSIFIED SERVICES Staffing & Outsourcing Service

DHX Dice Holdings Inc
HHGP Hudson Highland Grp Inc W/i

DIVERSIFIED SERVICES Technical Services

TTEK Tetra Tech Inc

DRUGS Biotechnology

CYPB Cypress Bioscience Inc
REGN Regeneron Pharm Inc

DRUGS Diagnostic Substances

MYGN Myriad Genetics Inc

DRUGS Drug Manufacturers - Major

GSK Glaxosmithkline Plc Adr
MRK Merck & Co

DRUGS Drug Manufacturers - Other

AGN Allergan Inc
CBST Cubist Pharmaceuticals

DRUGS Drug Related Products

PRGO Perrigo Co

ELECTRONICS Diversified Electronics

AEIS Advanced Energy Ind Inc
AMSC American Superconductor

ELECTRONICS Printed Circuit Boards

PKE Park Electrochemical Cp
RAVN Raven Industries Inc

ELECTRONICS Scientific & Technical Instrum

AFFX Affymetrix Inc
ANEN Anaren Inc

ELECTRONICS Semiconductor - Integrated Cir

BRCM Broadcom Corp Cl A
CNXT Conexant Systems Inc

ELECTRONICS Semiconductor - Memory Chips

NLST Netlist Inc

ELECTRONICS Semiconductor - Specialized

DSTI Daystar Technologies Inc
FSLR First Solar Inc

ELECTRONICS Semiconductor Equipment & Mate

MSPD Mindspeed Technologies Inc
NVMI Nova Measuring Instrmts.

ENERGY Independent Oil & Gas

BRY Berry Petroleum Co Cl A
CWEI Clayton Williams Energy

ENERGY Major Integrated Oil & Gas

CVX Chevron Corp

ENERGY Oil & Gas Drilling & Explorati

ME Mariner Energy Inc When Issued

ENERGY Oil & Gas Equipment & Services

BAS Basic Energy Services Inc

ENERGY Oil & Gas Pipelines

ETE Energy Transfer Equity LP
GEL Genesis Energy (L.P.)

ENERGY Oil & Gas Refining & Marketing

SUN Sunoco Inc
TSO Tesoro Corp

FINANCIAL SERVICES Asset Management

AMG Affiliated Managers Grp
DUF Duff & Phelps Corp

FINANCIAL SERVICES Closed End Fund - Debt

ADRA BLDRS Asia 50 ADR Index Fund E
BCV Bancroft Convertible Fd

FINANCIAL SERVICES Closed End Fund - Equity

BME Blackrock Health Sciences Trus
BTA BlackRock Long-Term Municipal

FINANCIAL SERVICES Closed End Fund - Foreign

FXF Rydex CurrencyShares Swiss Fra
GULF WisdomTree Middle East Dividen

FINANCIAL SERVICES Credit Services

ASFI Asta Funding Inc
BKCC Blackrock Kelso Cap Corp

FINANCIAL SERVICES Diversified Investments

AINV Apollo Investment Corp
MQC Millennium India Acq Co Inc

FINANCIAL SERVICES Investment Brokerage - Nationa

BGCP Bgc Partners Inc
BSC Bear Stearns Companies

FINANCIAL SERVICES Investment Brokerage - Regiona

GFIG Gfi Group

FOOD & BEVERAGE Beverages - Soft Drinks

AKOB Embotereva Cip (france)
CCH Coca-cola Hellenic Bottling Co

FOOD & BEVERAGE Confectioners

IPSU Imperial Sugar Company

FOOD & BEVERAGE Food - Major Diversified

ADM Archer Daniels Midland

FOOD & BEVERAGE Meat Products

BRID Bridgford Foods Corp

FOOD & BEVERAGE Processed & Packaged Goods

JVA Coffee Holding Co Inc
MLP Maui Land & Pineapple Co

HEALTH SERVICES Home Health Care

AMED Amedisys Inc

HEALTH SERVICES Hospitals

LPNT Lifepoint Hospitals

HEALTH SERVICES Medical Appliances & Equipment

AMMD American Medical Systems
ARTC Arthrocare Corp

HEALTH SERVICES Medical Instruments & Supplies

ACL Alcon Inc
ATEC Alphatec Holdings Inc

HEALTH SERVICES Medical Laboratories & Researc

ARRY Array Biopharma Inc

HEALTH SERVICES Specialized Health Services

ANCI American CareSource Holdings I

INSURANCE Accident & Health Insurance

PFG Principal Financial Group
UNM Unumprovident Corp

INSURANCE Insurance Brokers

CISG Cninsure Inc

INSURANCE Life Insurance

ANAT American National Insur
ING Ing Groep Nv

INSURANCE Property & Casualty Insurance

ACGL Arch Capital Group Ltd
IPCC Infinity Property & Casualty

INTERNET Internet Information Providers

BIDU Baidu.com Inc
EXPE Expedia Inc

INTERNET Internet Service Providers

GEX Globix Corp

INTERNET Internet Software & Services

CRH Coram Healthcare
GSOL Global Sources Ltd.

LEISURE Lodging

MHGC Morgans Hotel Group Co

LEISURE Resorts & Casinos

ASCA Ameristar Casinos Inc

LEISURE Restaurants

GTIM Good Times Restaurant
WEST Western Sizzlin Corp

LEISURE Sporting Activities

BWLA Bowl America Inc A

MANUFACTURING Diversified Machinery

CYD China Yuchai Int Ltd
GDI Gardner Denver Inc

MANUFACTURING Industrial Electrical Equipmen

FTEK Fuel Tech N.V.
GB Greatbatch Inc

MANUFACTURING Industrial Equipment & Compone

HEES H&E Equipment Services
SNHY Sun Hydraulics Corp

MANUFACTURING Machine Tools & Accessories

RBC Regal-Beloit Corp

MANUFACTURING Pollution & Treatment Controls

PURE Pure Bioscience

MANUFACTURING Textile Manufacturing

DXYN Dixie Group Inc The

MATERIALS & CONSTRUCTION General Building Materials

DW Drew Industries Inc
MLM Martin Marietta Material

MATERIALS & CONSTRUCTION Lumber

KOP Koppers Holdings

MATERIALS & CONSTRUCTION Residential Construction

CHCI Comstock Homebuilding Comp

MATERIALS & CONSTRUCTION Waste Management

RSG Republic Services Inc
TRR Trc Companies Inc

MEDIA Broadcasting - TV

FSCI Fisher Comms

MEDIA CATV Systems

DISCA Discovery Holding Co Class A

MEDIA Entertainment - Diversified

DISCK Discovery Communications Inc
NWS News Corp Inc

MEDIA Marketing Services

SGK Schawk Inc

MEDIA Publishing - Periodicals/News

ENL Reed Elsevier Nv
MDP Meredith Corp

METALS & MINING Copper

SLT Sterlite Industries

METALS & MINING Industrial Metals & Minerals

ACI Arch Coal Inc
CNX Consol Energy Inc

METALS & MINING Nonmetallic Mineral Mining

CHBT China-Biotics Inc

METALS & MINING Silver

EXK Endeavour Silver Corp

METALS & MINING Steel & Iron

CMC Commercial Metals Co
CRS Carpenter Technol Corp

REAL ESTATE Mortgage Investment

DRL Doral Financial Corp

REAL ESTATE Property Management/Developmen

ZIPR Ziprealty Inc

REAL ESTATE REIT - Diversified/Industrial

CLP Colonial Properties Tr
FPO First Potomac Realty Trust

REAL ESTATE REIT - Healthcare Facilities

LTC Ltc Properties Inc

REAL ESTATE REIT - Hotel/Motel

HT Hersha Hospitality Trust

REAL ESTATE REIT - Residential

AGNC American Capital Agency Corp.

REAL ESTATE REIT - Retail

KRG Kite Realty Grp Tr

RETAIL Department Stores

KSS Kohl's Corp

RETAIL Discount

NDN 99 Cents Only Stores
TGT Target Corporation

RETAIL Drug Stores

CVS Cvs Corp
PSMT Pricesmart Inc

RETAIL Grocery Stores

RDK Ruddick Corp
VLGEA Village Super Market A

RETAIL Home Improvement Stores

HD Home Depot Inc
LOW Lowe's Companies Inc

SPECIALTY RETAIL Apparel Stores

ANF Abercrombie & Fitch Co
DSW DSW Inc

SPECIALTY RETAIL Specialty Retail

ODP Office Depot Inc
OSTK Overstock.com Inc

TELECOMMUNICATIONS Communication Equipment

CBEY CBeyond Communications Inc
CMTL Comtech Telecommun Corp

TELECOMMUNICATIONS Diversified Communication Serv

PCTI Pc-Tel Incorporated

TELECOMMUNICATIONS Long Distance Carriers

GNCMA General Communications A

TELECOMMUNICATIONS Processing Systems & Products

TKLC Tekelec

TELECOMMUNICATIONS Telecom Services - Foreign

ATNI Atlantic Tele-Network
CHA China Telecom

TOBACCO Cigarettes

LO The Lorillard Group
PM Philip Morris International

TRANSPORTATION Air Services

PHIIK Petroleum Helicopter Nv

TRANSPORTATION Major Airlines

AMR Amr Corporation

TRANSPORTATION Regional Airlines

GIA Gulfstream International Group
JBLU Jetblue Airways Corp

TRANSPORTATION Shipping

TBSI TBS International Limited Clas
TNK Teekay Tankers Ltd

TRANSPORTATION Trucking

YRCW YRC Worldwide Inc

UTILITIES Diversified Utilities

CHG Ch Energy Group Inc
CMS Cms Energy Corp

UTILITIES Electric Utilities

D Dominion Resources Inc
DTE Dte Energy Co

UTILITIES Foreign Utilities

EOC Empresa Nac Elec Chile
KEP Korea Elec Pwr Ads

UTILITIES Gas Utilities

NJR New Jersey Resources Cp
NWN Northwest Natural Gas Co

UTILITIES Water Utilities

ARTNA Artesian Resources Corp Cl A
AWK American Water Works

WHOLESALE Auto Parts Wholesale

KAR Adesa Inc
LKQX Lkq Corporation

WHOLESALE Drugs Wholesale

ABC Amerisourcebergen Corp

WHOLESALE Electronics Wholesale

CELL Brightpoint Inc

WHOLESALE Food Wholesale

SYY Sysco Corp

WHOLESALE Industrial Equipment Wholesale

ARG Airgas Inc
TTES T-3 Energy Services Inc

WHOLESALE Medical Equipment Wholesale

HSIC Henry Schein Inc
MWIV MWI Veterinary Supply Inc

WHOLESALE Wholesale

DFS Department 56 Inc

--------------------------------------------
My 'Annual Forecast Model' (VR Forecaster Report) is now posted on the VRtrader.com website and covers cyclical projections for the Dow Industrials, the TSX, Gold, Crude Oil, Ten Year Interest Rate Yields and the US Dollar Index. The Model has been published since 1987 and has garnered a respectable following among traders and investors seeking an overall 'timing' tool for the major markets. Here is the link:

https://www.vrtrader...cribe/index.asp
--------------------------------------------
What is our true national debt?
http://www.truthin08.org/
--------------------------------------------
Money Show - Las Vegas, May 13, 2010 interview:

http://tinyurl.com/2aopqdd

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

My PBS 'Nightly Business Report' interview should be posted this week on the NBR website for those die-hard fans who missed it. The link to use would be:

http://tinyurl.com/29jp28x
--------------------------------------------

BNN Interview Thursday, October 21, 2010:

http://watch.bnn.ca/#clip364110
--------------------------------------------
Don't forget about the VR Watchlist:

http://www.vrtrader....n/watchlist.asp

You need to sign in at the www.vrtrader.com website to retrieve it!

-------------------------------------------- COMMENTARY:
--------------------------------------------
Repeating this article:


U.S. Midterm Elections, Obama and Iran

By George Friedman

We are a week away from the 2010 U.S. midterm elections. The outcome is already locked in. Whether the Republicans take the House or the Senate is close to immaterial. It is almost certain that the dynamics of American domestic politics will change. The Democrats will lose their ability to impose cloture in the Senate and thereby shut off debate. Whether they lose the House or not, the Democrats will lose the ability to pass legislation at the will of the House Democratic leadership. The large majority held by the Democrats will be gone, and party discipline will not be strong enough (it never is) to prevent some defections.

Should the Republicans win an overwhelming victory in both houses next week, they will still not have the votes to override presidential vetoes. Therefore they will not be able to legislate unilaterally, and if any legislation is to be passed it will have to be the result of negotiations between the president and the Republican Congressional leadership. Thus, whether the Democrats do better than expected or the Republicans win a massive victory, the practical result will be the same.

When we consider the difficulties President Barack Obama had passing his health care legislation, even with powerful majorities in both houses, it is clear that he will not be able to push through any significant legislation without Republican agreement. The result will either be gridlock or a very different legislative agenda than we have seen in the first two years.

These are not unique circumstances. Reversals in the first midterm election after a presidential election happened to Ronald Reagan and Bill Clinton. It does not mean that Obama is guaranteed to lose a re-election bid, although it does mean that, in order to win that election, he will have to operate in a very different way. It also means that the 2012 presidential campaign will begin next Wednesday on Nov. 3. Given his low approval ratings, Obama appears vulnerable and the Republican nomination has become extremely valuable. For his part, Obama does not have much time to lose in reshaping his presidency. With the Iowa caucuses about 15 months away and the Republicans holding momentum, the president will have to begin his campaign.

Obama now has two options in terms of domestic strategy. The first is to continue to press his agenda, knowing that it will be voted down. If the domestic situation improves, he takes credit for it. If it doesn't, he runs against Republican partisanship. The second option is to abandon his agenda, cooperate with the Republicans and re-establish his image as a centrist. Both have political advantages and disadvantages and present an important strategic decision for Obama to make.

The Foreign Policy Option

Obama also has a third option, which is to shift his focus from domestic policy to foreign policy. The founders created a system in which the president is inherently weak in domestic policy and able to take action only when his position in Congress is extremely strong. This was how the founders sought to avoid the tyranny of narrow majorities. At the same time, they made the president quite powerful in foreign policy regardless of Congress, and the evolution of the presidency over the centuries has further strengthened this power. Historically, when the president has been weak domestically, one option he has had is to appear powerful by focusing on foreign policy.

For presidents like Clinton, this was not a particularly viable option in 1994-1996. The international system was quiet, and it was difficult to act meaningfully and decisively. It was easier for Reagan in 1982-1984. The Soviet Union was strong and threatening, and an aggressive anti-Soviet stance was popular and flowed from his 1980 campaign. Deploying the ground-launched cruise missile and the Pershing II medium-range ballistic missile in Western Europe alienated his opponents, strengthened his position with his political base and allowed him to take the center (and ultimately pressured the Soviets into agreeing to the Intermediate-Range Nuclear Forces Treaty). By 1984, with the recession over, Reagan's anti-Soviet stance helped him defeat Walter Mondale.

Obama does not have Clinton's problem. The international environment allows him to take a much more assertive stance than he has over the past two years. The war in Afghanistan is reaching a delicate negotiating state as reports of ongoing talks circulate. The Iraq war is far from stable, with

50,000 U.S. troops still there, and the Iranian issue is wide open. Israeli-Palestinian talks are also faltering, and there are a host of other foreign issues, ranging from China's increasing assertiveness to Russia's resurgent power to the ongoing decline in military power of America's European allies. There are a range of issues that need to be addressed at the presidential level, many of which would resonate with at least some voters and allow Obama to be presidential in spite of weak political support.

There are two problems with Obama becoming a foreign policy president. The first is that the country is focused on the economy and on domestic issues. If he focuses on foreign policy and the U.S. economy does not improve by 2012, it will cost him the election. His hope will be foreign policy successes, or at least the perception of being strong on national security, coupled with economic recovery or a plausible reason to blame the Republicans. This is a tricky maneuver, but his presidency no longer offers simple solutions.

The second problem is that his presidency and campaign have been based on the general principle of accommodation rather than confrontation in foreign affairs, with the sole exception of Afghanistan, where he chose to be substantially more aggressive than his predecessor had been. The place where he was assertive is unlikely to yield a major foreign policy success, unless that success is a negotiated settlement with the Taliban. A negotiated settlement will be portrayed by the Republicans as capitulation rather than triumph. If he continues on the current course in Afghanistan, he will seem to be plodding down an old path and not pioneering a new one.

Interestingly, if Obama's goal is to appear strong on national security while regaining the center, Afghanistan offers the least attractive venue. His choices are negotiation, which would reinforce his image as an accommodationist in foreign policy, or continued war, which is not particularly new territory. He could deploy even more forces into Afghanistan, but then would risk looking like Lyndon Johnson in 1967, hurling troops at the enemy without a clear plan. He could, of course, create a massive crisis with Pakistan, but it would be extremely unlikely that such an effort would end well, given the situation in Afghanistan. Foreign policy presidents need to be successful.

There is little to be done in Iraq at the moment except delay the withdrawal of forces, which adds little to his political position. Moreover, the core problem in Iraq at the moment is Iran and its support of disruptive forces. Obama could attempt to force an Israeli-Palestinian settlement, but that would require Hamas to change its position, which is unlikely, or that Israel make massive concessions, which it doesn't think it has to do. The problem with Israel and the Palestinians is that peace talks, such as those under Clinton at Camp David, have a nasty tendency to end in chaos.

The European, Russian and Chinese situations are of great importance, but they are not conducive to dramatic acts. The United States is not going to blockade China over the yuan or hold a stunning set of meetings with the Europeans to get them to increase their defense budgets and commit to more support for U.S. wars. And the situation regarding North Korea does not have the pressing urgency to justify U.S. action. There are many actions that would satisfy Obama's accomodationist inclinations, but those would not serve well in portraying him as decisive in foreign policy.

The Iranian Option

This leaves the obvious choice: Iran. Iran is the one issue on which the president could galvanize public opinion. The Republicans have portrayed Obama as weak on combating militant Islamism. Many of the Democrats see Iran as a repressive violator of human rights, particularly after the crackdown on the Green Movement. The Arabian Peninsula, particularly Saudi Arabia, is afraid of Iran and wants the United States to do something more than provide $60 billion-worth of weapons over the next 10 years. The Israelis, obviously, are hostile. The Europeans are hostile to Iran but want to avoid escalation, unless it ends quickly and successfully and without a disruption of oil supplies. The Russians like the Iranians are a thorn in the American side, as are the Chinese, but neither would have much choice should the United States deal with Iran quickly and effectively. Moreover, the situation in Iraq would improve if Iran were to be neutralized, and the psychology in Afghanistan could also shift.

If Obama were to use foreign policy to enhance his political standing through decisive action, and achieve some positive results in relations with foreign governments, the one place he could do it would be Iran. The issue is what he might have to do and what the risks would be. Nothing could, after all, hurt him more than an aggressive stance against Iran that failed to achieve its goals or turned into a military disaster for the United States.

So far, Obama's policy toward Iran has been to incrementally increase sanctions by building a weak coalition and allow the sanctions to create shifts in Iran's domestic political situation. The idea is to weaken President Mahmoud Ahmadinejad and strengthen his enemies, who are assumed to be more moderate and less inclined to pursue nuclear weapons. Obama has avoided overt military action against Iran, so a confrontation with Iran would require a deliberate shift in the U.S. stance, which would require a justification.

The most obvious justification would be to claim that Iran is about to construct a nuclear device. Whether or not this is true would be immaterial. First, no one would be in a position to challenge the claim, and, second, Obama's credibility in making the assertion would be much greater than George W. Bush's, given that Obama does not have the 2003 weapons-of-mass-destruction debacle to deal with and has the advantage of not having made such a claim before. Coming from Obama, the claim would confirm the views of the Republicans, while the Democrats would be hard-pressed to challenge him. In the face of this assertion, Obama would be forced to take action. He could appear reluctant to his base, decisive to the rest. The Republicans could not easily attack him. Nor would the claim be a lie. Defining what it means to almost possess nuclear weapons is nearly a metaphysical discussion. It requires merely a shift in definitions and assumptions. This is cynical scenario, but it can be aligned with reasonable concerns.

As STRATFOR has argued in the past, destroying Iran's nuclear capability does not involve a one-day raid, nor is Iran without the ability to retaliate. Its nuclear facilities are in a number of places and Iran has had years to harden those facilities. Destroying the facilities might take an extended air campaign and might even require the use of special operations units to verify battle damage and complete the mission. In addition, military action against Iran's naval forces would be needed to protect the oil routes through the Persian Gulf from small boat swarms and mines, anti-ship missile launchers would have to be attacked and Iranian air force and air defenses taken out. This would not solve the problem of the rest of Iran's conventional forces, which would represent a threat to the region, so these forces would have to be attacked and reduced as well.

An attack on Iran would not be an invasion, nor would it be a short war. Like Yugoslavia in 1999, it would be an extended air war lasting an unknown number of months. There would be American POWs from aircraft that were shot down or suffered mechanical failure over Iranian territory. There would be many civilian casualties, which the international media would focus on. It would not be an antiseptic campaign, but it would likely (though it is important to reiterate not certainly) destroy Iran's nuclear capability and profoundly weaken its conventional forces. It would be a war based on American strengths in aerial warfare and technology, not on American weaknesses in counterinsurgency. It would strengthen the Iranian regime (as aerial bombing usually does) by rallying the Iranian public to its side against the aggression. If the campaign were successful, the Iranian regime would be stronger politically, at least for a while, but eviscerated militarily. A successful campaign wo uld ease the U.S. withdrawal from Iraq, calm the Saudis and demonstrate to the Europeans American capability and will. It would also cause the Russians and Chinese to become very thoughtful.

A campaign against Iran would have its risks. Iran could launch a terrorist campaign and attempt to close the Strait of Hormuz, sending the global economy into a deep recession on soaring oil prices. It could also create a civil war in Iraq. U.S. intelligence could have missed the fact that the Iranians already have a deliverable nuclear weapon. All of these are possible risks, and, according to STRATFOR's thinking, the risks outweigh the rewards. After all, the best laid military plan can end in a fiasco.

We have argued that a negotiation with Iran in the order of President Richard Nixon's reversal on China would be a lower-risk solution to the nuclear problem than the military option. But for Obama, this is politically difficult to do. Had Bush done this, he would have had the ideological credentials to deal with Iran, as Nixon had the ideological credentials to deal with China. But Obama does not. Negotiating an agreement with Iran in the wake of an electoral rout would open the floodgates to condemnation of Obama as an appeaser. In losing power, he loses the option for negotiation unless he is content to be a one-term president.

I am arguing the following. First, Obama will be paralyzed on domestic policies by this election. He can craft a re-election campaign blaming the Republicans for gridlock. This has its advantages and disadvantages; the Republicans, charging that he refused to adjust to the electorate's wishes, can blame him for the gridlock. It can go either way. The other option for Obama is to look for triumph in foreign policy where he has a weak hand. The only obvious way to achieve success that would have a positive effect on the U.S. strategic position is to attack Iran. Such an attack would have substantial advantages and very real dangers. It could change the dynamics of the Middle East and it could be a military failure.

I am not claiming that Obama will decide to do this based on politics, although no U.S. president has ever engaged in foreign involvement without political considerations, nor should he. I am saying that, at this moment in history, given the domestic gridlock that appears to be in the offing, a shift to a foreign policy emphasis makes sense, Obama needs to be seen as an effective commander in chief and Iran is the logical target.

This is not a prediction. Obama does not share his thoughts with me. It is merely speculation on the options Obama will have after the midterm elections, not what he will choose to do.
--------------------------------------------
Wall Street Turns Blind Eye as Jobs Just Vanish

By: Robert Wiedemer

The stock market may be in heaven over the thought of more printed money coming from the Fed.

Goldman Sachs just estimated that it will be as much as $2 trillion ­ an increase of about 250 percent in our 2008 money supply. That's a big increase and that has made the Street very happy ­ smiles all around and the market is up very nicely.

But let's take a look at some real economic news that came out recently that no one on the Street seemed to care about.

Will the Stock Market Plunge 50% (or More) ­ Taking Your Retirement With It? Click Here

Buried in the jobs report for September was a minor adjustment to past job reports. The September jobs report wasn't good, showing a loss of 95,000 jobs, which the Street took as great news since they think that will scare the Fed into printing even more money even faster ­ what could be better?

But it was the adjustment that was most important. The Bureau of Labor Statistics (BLS) said they expected to adjust downward the amount of jobs created in 2010 by 366,000. That's a lot of jobs. In fact, since the BLS has reported that we have only created 613,000 jobs so far this year that adjustment just wiped out more than half the number of jobs created this year.

Why the big adjustment? It's an adjustment for the birth/death rate of businesses. The BLS surveys businesses to get their jobs data but they can't get accurate data from new businesses or failing businesses so they make an estimate on how many jobs those businesses created based on trends from the last five years.

Of course, the growth rate for jobs over the last five years has been pretty different from the last two years. So, no surprise that after the BLS reviews unemployment insurance records toward the end of this year, its estimates have been adjusted downward. In fact, last year the BLS adjusted the number of jobs created downward by 902,000.

When there are so few jobs being created, these are big adjustments. The adjustments in 2009 and 2010 were the biggest since the data began being gathered in 1979. We could complain about the statistical methods being used by the BLS (figures never lie, but liars always figure), but what's more interesting is that the stock market didn't even seem to notice or care that we had just wiped out half the jobs created in this country.

However, they cared a whole lot when those jobs were reported as created each month during the past year and studied the figures for every bit of good news they could find to show that the economy was doing better than expected and boost the market. But, when those jobs were reported to have been a fake, the Street didn't mind a bit.

The Street seemed to go out of their way to consciously ignore that data. Maybe they thought it was more good news and would encourage the Fed to print money, but nobody said that. They just ignored the adjustment. It's also not just a one month issue ­ it's very telling about the poor state of the economy.

We have essentially created almost no jobs this year. In fact, ADP, the private payroll-processing company, says we have only created 51,000 jobs.

The government's job adjustment is too big to put a good spin on it, so the Street just ignores it. Why the bias? In a word ­ cheerleading.

It's the same mentality that says printing money is good ­ look only at a short-term good side and don't care about any long term bad side. It follows a simple cheerleading mantra: If you don't have anything good to say, don't say anything at all.

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Election Day and the Fed: Buy the Rumor, Sell the Fact

By: David Frazier

Seven days from now, Americans across the country will elect government officials to represent them in the U.S. Congress and in their respective states. The following day, the Federal Reserve will issue its latest statement regarding the Fed's monetary-policy plans for the months ahead.

Recent election polls indicate that members of the Republican Party will take control of the House of Representatives and gain seats in the Senate.

Meanwhile, most stock-market participants and economists expect the Federal Reserve to announce on Nov. 3 that it will soon begin a new wave of quantitative easing - that it will increase the amount of money that banks can lend by purchasing large amounts of U.S. government securities.

How to Make Money Off Barack Obama's $819 Billion "Stimulus Plan"

As a result of those expectations, stock prices trended higher during the past eight weeks, with the Dow Jones Industrial Average rising 1139 points (11.5 percent) and the S&P 500 Index advancing 13 percent from Sept. 1 to Oct. 25.

Although some stock-market participants expect stocks to continue to rally during the weeks ahead, my experience suggests that stocks might pull back substantially following the outcome of the midterm elections and the Federal Reserve's announcement on its monetary policy. That's because investors have likely already factored those factors into the market.

If the Fed doesn't give a clear indication of the amount of government securities that it might purchase during the months ahead, or if it indicates that it will purchase a lesser amount of those securities than current stock-market participants expect, there's a good chance that stocks will fall sharply during the week ending Nov. 5.

I therefore urge you to not get too excited about the recent advances in stock prices.

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Dems 'Unleash Paroxysm of Spending' to Beat GOP

The New York Times reported late Friday that "Democratic candidates have unleashed a last-minute paroxysm of spending" to defeat Republican candidates in key House races across the nation.

The paper said that the last-ditch Democratic effort was being funded democrats,spending,midterm,electionsby " huge expenditures from the Democratic campaign committee, which, as of mid-October, had more than twice the amount of money in the bank as the National Republican Congressional Committee."

The Times detailed that the Democratic campaign committee spent $24 million in 68 of the 109 House races, "compared with the $12.5 million across 59 contests by its Republican counterpart."

The report continued: "On top of the party committee's spending, Democratic-oriented outside groups, led by labor unions and others, outspent Republican-oriented groups in competitive House races, $7.4 million to $6.9 million, according to the Times analysis. Meanwhile, the Democratic House candidates outspent Republicans, $12.3 million to $7.7 million, on television in competitive races over the last week, based on data from Campaign Media Analysis Group."

Soft money for Democratic candidates has come from public employee unions. Last week the Wall Street Journal reported that such unions were pumping $88 million to save Democrats in contested races across the nation.
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Peter Schiff:

There has been so much discussion recently about "QE 2" that you would think the entire financial sector were about to embark on a transatlantic cruise. Unfortunately, they, and we, are not so lucky. In the year 2010, "QE 2" doesn't refer to a sumptuous ocean liner, but a second, more extravagant round of "quantitative easing" - stimulus. In the past, this technique was simply called "printing money." As if the nation has not already suffered enough from the first round, Captain Ben Bernanke and the Fed are determined to compound the damage by hitting us with another monetary juggernaut. Their stated goal is to boost the economy and create jobs. However, since economic growth cannot be achieved by printing money, their QE 2 will sink just as surely as the Titanic.

The intent of QE 2 is to lower interest rates to promote job growth and avoid the apparently growing threat of deflation. But the very idea that the economy is weak because interest rates are too high is laughable. Deflation is the market's cure for the asset bubbles that have recently burst, so any attempt to avert it will only weaken the economy further.

In fact, one of the reasons the US economy is in such bad shape is that interest rates are already too low. Low rates have encouraged excess borrowing, by both individuals and governments, and discouraged saving, fueling new asset bubbles at the expense of legitimate investment. As a result, the dead weight of debt has simply overloaded our economy, and our creditors are getting nervous. What we need now is to make hard choices, not engage in more easing - to deleverage, not borrow more.

Worse still, by keeping rates too low, the Fed has enabled the US government to grow significantly larger than it otherwise could had its borrowing been restrained by higher rates. Absent these low rates, Washington likely wouldn't have passed expensive new healthcare and financial regulation reforms; they would be too busy trying to keep the lights on in the Capitol.

For this and other reasons, the bogeyman of deflation is really not a concern at all. It's not a threat because falling consumer prices could serve as a relief for many suffering from layoffs and pay cuts in the recession. Even if it were a threat, it's not even likely because so much liquidity has already been created and an infinite amount could still be created at will by the Fed. Consumer prices are already rising across the board, despite a contracting economy, so what's all this talk about deflation?

The Fed is quick to point to falling real estate prices. But a drop in real estate will no more cause consumer prices to fall than the real estate boom caused them to rise. Real estate prices are too high, and the economy will never truly recover unless they are allowed to fall. It is interesting that when real estate prices were rising, the Fed did not raise rates to bring them down, but now that they are falling, the central bank feels compelled to lower rates to prop them up. If falling real estate prices threaten deflation, why did the Fed not perceive an inflation threat when real estate prices were rising?

My thinking is that, at the end of the day, all this deflation talk is a red herring. The true purpose of QE 2 is to disguise the decreasing ability of the Treasury to finance its debts. As global demand for dollar-denominated debt falls, the Fed is looking for an excuse to pick up the slack. By announcing QE 2, it can monetize government debt without the markets perceiving a funding problem. If the truth were known, a real panic would ensue. So, the Fed pretends buying treasuries is simply part of its master plan to boost the economy, even though, in reality, it is simply acting as the buyer of last resort.

If the Fed really wanted to help the economy, it would raise rates quite dramatically. Instead of preparing for QE 2, it should be unloading the debt it purchased during QE 1. Of course, that is not so easy to do - which is precisely why I was against QE 1 from the beginning. However, even though the exit will be painful, going down with the ship will be even more unpleasant.

Higher interest rates and a commitment from the Fed to refrain from purchasing Treasury debt would force the government to dramatically reduce spending. If we combine less government spending with fewer regulations, reform our tax code in a way that stops punishing savings and investment, stop all government subsidies for real estate so that prices can fall to affordable levels, and allow all insolvent entities to fail, then a real recovery will take hold.

If the Fed refuses to set sail on QE 2, then her loyal passengers might complain, but at least the US will be on solid monetary ground as it tried to rebuild a viable economy. If instead we board QE 2 (and QE 3 and QE 4 thereafter), then we are headed to a sea full of icebergs called interest rate spikes, and all on board will surely drown in a sea of worthless Federal Reserve Notes.
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Bill Gross - Fed's program a Ponzi Scheme

On October 27th, Bill Gross, of Pimco, and Jeremy Grantham, a chief investment
strategist, lambasted the Fed's ultra-easy monetary policy. "The Fed's bond purchasing program is in fact inflationary, and, if truth be told, - a Ponzi scheme. It raises bond prices to create the illusion of high annual returns, but ultimately it reaches a dead end where those prices can no longer go up," Gross wrote.

Gross, who helps oversee more than $1.1-trillion at Pimco, added, "The Fed's QE-2
announcement will likely signify the end of a great 30-year bull market in bonds and
the necessity for bond managers and, yes, equity managers to adjust to a new environment," he said. Gross said Treasury rates may be "rock bottom," Grantham, who helps oversee over $100-billion, said Fed policy has resulted in extraordinary destructiveness and ruinous cost." "I would force the Fed to swear off manipulating asset prices through artificially low rates and asymmetric promises of help in tough times -- the Greenspan/Bernanke put," Grantham wrote to clients on Tuesday. He referred to Fed chief Ben Bernanke and his predecessor, "Easy" Al Greenspan. "It would be a better, simpler and less dangerous world, although one much less exciting for us students of bubbles," Grantham wrote in a report titled "Night of the Living Fed."
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From www.sirchartsalot.com:

Minnesota, Mining, and Manufacturing,(MMM.N) is considered a key barometer of broader global economic health because it makes everything from Scotch tape to respirators. 3-M also produces over 1,000 products for cars and roads, paint, all-weather pavement markings and sheeting for reflective signs. MMM's shares hit a 52-week high of $91.50 /share this week, up +22% since early June, fueled by the euro's
rally vs the US$, and stronger emerging currencies.

MMM has repeatedly beat expectations and posted a Q'3 profit of $1.1-billion, up from
$971 million a year ago. Yet breaking the close correlation with the currency markets,
MMM shares unexpectedly plunged 7% on October 28th, to $84.50, after its CEO said growth in the US and Western Europe is "uninspiring." MMM is shifting more of its business to emerging markets.
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John Paulson Says to Buy Dividend Stocks and Houses, Sell Bonds

At the end of last week, the market ripped higher presumably from hedge fund manager David Tepper's comments when he said he likes equities here. Now add to the mix another well known manager in John Paulson. His hedge fund Paulson & Co of course made billions from his bet against subprime as detailed in the book, The Greatest Trade Ever. Given his success, everyone now latches onto his every word, hoping for advice.

Paulson did divulge some of his latest views at a lecture for New York's University Club. Simply put, he said to buy stocks and sell bonds. His favorite stocks are blue-chips with dividends such as: Johnson and Johnson (JNJ) and Coca Cola (KO). Playing on his 'recovery' theme, he also continues to like Bank of America (BAC), Suntrust Banks (STI), and Regions Financial (RF).

Equities

Paulson says to simply replace low yielding bonds with higher yielding stocks. A 10 year Treasury yields around 2.6% and so stocks with earnings yields of 7-8% are much better options. While Paulson did not mention these names, a quick scan pulls up companies with even higher earnings yields such as Medtronic (MDT) at 9.43%, ConocoPhillips (COP) at 10.52%, and Microsoft (MSFT) at 8.53%.

Gold

We've examined John Paulson's gold fund in-depth in the past, and so it should come as no surprise that the hedge fund manager thinks the precious metal is headed higher. He says that gold (currently around $1,200) could hit $2,400 on monetary expansion alone and even $4,000 with significant inflation. His hedge funds offer a fund share class denominated in gold and Paulson himself has 80% of his assets in this class. Additionally, given his inflationist bent, Paulson thinks the U.S. Dollar will fall and that yields on Treasuries will rise. He has been buying 5 and 7 year calls on the 30-year bond yield. We've seen numerous hedge funds put on this type of trade before.

Housing

Lastly, Paulson thinks this is the best time to buy a home in fifty years, exclaiming that, "If you don't own a home, buy one. If you own one home, buy another one, and if you own two homes buy a third and lend your relatives the money to buy a home." Great, isn't that just the type of mentality that created the housing bubble in the first place? We realize he is using hyperbole to illustrate his point, but still. Given his prominence in the investing world these days, some people might actually take him literally. For more notes on Paulson's talk, head to Zero Hedge and to Forbes.

In terms of recent position movement from hedge fund Paulson & Co, we detailed its activist position in NovaGold Resources (NG) and sale of Centamin Egypt position.
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