When the SPDR TRUST (NYSE:SPY), Power Shares QQQ(Nasdaq:QQQQ), and Diamonds trust Series 1 ETF (NYSE:DIA) found a low in March 2009 the public was in despair. People believed that the next great depression was underway. Massive liquidity was put into the market by every central bank in the world. Cash literally poured into every toxic asset that was ever designed. Since that time the markets have responded by moving over 50 percent off their lows. Now what? Are we back to normal yet?

Today the markets want to know what is next from Mr. Bernanke and company (other central banks). Like the Janet Jackson song says, “what have you done for me lately”? What is next for an encore? The general problems such as the severe housing crisis still remains, the high unemployment picture has not changed, banks have cut credit lines are still not lending or making significant loans, and spending by the consumer continues to remain near extremely low levels. While the Federal government can create tax breaks and incentive programs for hurting citizens and residents to make them feel like they are getting something, however, can that really fix the problem?

Where are we now? Currently we are in the middle of a correction. If you have ever gone to a party, you know the party must come to end eventually. Well, the market is telling you that the 2009 party is over for now. Yes, someone will have another party along the way. New spending programs will come up to give the markets a lift. However, someone has to pay for these parties and with the current problems the cash is limited. Therefore, while there will be rallies along the way don’t expect 2010 to be anything like 2009.

Nicholas Santiago

Chief Market Strategist

www.InTheMoneyStocks.com

It is what traders call short selling. Unfortunately, most 401k investors have never shorted a stock and don’t even know that this type of investing is even possible. Then again, why should they? Wall Street mutual funds still generate their fees regardless of what the market does. Can you imagine paying someone to lose ten years worth of your savings? It happened all last year. Then Wall Street says, don’t worry you are in it for the long term. What about the baby boomer’s who don’t have a long time to wait? What happens if this lasts until 2015 or longer? These are questions people need to ask themselves.

Oh, I forgot the new stimulus plan is going to bail everyone out. This will be the third stimulus plan since President Bush’s first term and it will just cause this country more debt. It looks like the first two stimulus plans worked out really well. Don’t forget the bailouts of AIG, Citi Bank, the automakers and countless other financial institution that are using the TARP. Who is paying for all these bailouts anyway? Isn’t it the taxpayer who is going to pay? What is going to happen to the U.S. Dollar as it becomes so diluted? What happens to the current retired individual’s purchasing power? What happens to the baby boomer that was planning on retiring? Again, these are the questions people need to ask themselves.

The stock market is now back to the same levels as it was in 1997. Are housing prices back at 1997 levels? Are food prices back at 1997 levels? Are gold prices back at 1997 levels? Are energy prices back at 1997 levels? You get the picture.
The answer to all these questions is a simple NO! If I hear one more time that the markets are out of the woods and the new President is going to fix this mess I have news for you, not anytime soon!

The beauty of the American financial system was the fact that the market could go into a recession. Believe it or not recessions are healthy. They allow the system to clean out by getting rid of the excesses. Yes, times are tough for many during recessions. However, it allows the markets to get a fresh start and resolve the problems until the next overheated mania. It is called peaks and troughs. The problem today is simply an excessive peak after an 18 year bull market(1982-2000) that was never allowed to have a correct recession. The market moves in extremes like a pendulum that moves from one side to the other and takes time to find the mid point. In the 1990′s the market moved to new all time highs as the dot coms and anything technology was being bought by the public. In the year 2001 the tech bubble burst and the 9-11 tragedy took place. The economy was going through as tough recession and then Fed Chairman Greenspan lowered the fed funds rates to 1% sparking the next bubble, this time in housing. The housing bubble is much bigger than the prior tech bubble due to the fact that most investors and traders could only borrow 50% from their broker to buy stocks(Reg T). In the housing market borrowers where in many cases allowed to borrow more than the price of the home. In many cases 125% loan to value. Also, many borrowers were not even qualified to own a credit card let alone a home.
Can this problem be solved with another stimulus check? Of course not. What about the rising unemployment? Oh, I forgot the government is going to rebuild the roads in the country. That didn’t work in the 1930′s and it’s not going to work now.

This crisis will take time to resolve itself. The more government intervention, the longer it will take. We believe that a first quarter or even first half rally is very possible. However, the second half is likely to be very tough. How can doing more of the same be any good. You can only patch up a flat tire so many times before it rides on the rim of the wheel and rips the tire in half.
This tire(economy) appears to be on it’s last tread.

Source: Nicholas Santiago,

InTheMoneyStocks.com
The Leader In Market Technical Guidance
01.09.09

Unfortunately, I myself,  much like the rest of you have aged beyond these childhood games. Now that I am an adult, the real question becomes, can ‘toys = money‘ translating into that once lost satisfaction?

Here I stand before you and shout out loud, “YES IT CAN!”. Whether you own an XBOX 360, or have played it at your next door buddy’s place, there is no denying the appeal the system has had on the world market. Amidst the vast array of games, there was always that one which you could never put down: HALO. Yes, it seemed like everywhere you went — parties, shopping malls, even your very own 12 year old cousin that you thought couldn’t put 2 and 2 together had played this game inside out. So now nearly a year and a half post release date of HALO 3, the game has come back with a vengeance once again. With the release of HALO WARS set for March 3rd, 2009, the inevitable addiction is bound to leech onto rabid fans once again.

So now that we have the foreground set, lets get to the point. After my nagging boredom of investing from the tumbling stock market, I have finally decided to step out of my den and begin joyfully scouting the market for a way to re-invigorate my portfolio.

To me, there was no better choice out there than Mega Brands Inc. (TSE:MB) who has recently inked a massive deal with Microsoft Corp.‘s Game Studios to create a line of construction toys based on the software giant’s coming Halo Wars video game. Source: GlobeInvestor.com article, “MEGA Brands dons Halo to capture tween market.”

So now, lets put this into perspective — How successful was HALO 3 on its release? Released in September, 2007, the game pulled in more than $300-million (U.S.) in its first week of sales. If this move doesn’t spell out “CA$H” blatantly enough for you, then I don’t know what will.

p.s. I know many of you have stepped away from the investment’s world as well these past horrific months, however, lets gather ourselves and once again do what we do best — Make money investing online Cheers!

150 shares, and an entire portfolio dedicated to Research in Motion, why?

It’s quite simple really… This stock is every investor’s dream – Top tier management, increasing global expansions, top of the industry R&D (Research and Development)… all while being severely underpriced @ $100 a share

Now if you missed it, I wrote an article on RIM previously — Blackberry Thunder and Bold about to be released, how will they affect rimm?

So what makes me throw all of my eggs in one basket despite preaching not to do so? Easy… there is no better bargain out there on the market.

Taking a look at the financials, it is easy and quick to note what makes this such a solid and well managed company:

Note how there are increases within the last quarter in almost every category: Total Revenue, Gross Profit, Operating Income, Net Income, Total Current Assets, Total Assets, and Cash Flow.

—

Financials aside, lets take a look at the price.

This baby hasn’t been available at such a cheap bargain since the start of ’08, back when it was first publicizing the Blackberry 8800 and 8300 Curve.

Now, if you’re not satisfied with the main course meal just yet, let me top it all off with some fine cuisine desert fresh out of the oven:

• Mad Money Lighting Round: Stick With Research in Motion
• RIM Paces Tech Advance
• RIM Launches New Blackberry Flip Pohone
• RIM Captures more than half of the smartphone market vs. (a decline of only 17.5% for the iPhone)
• Canaccord reiterates their PT of $185 on RIM
• Microsoft, Research In Motion Strike Search Deal

What will your next phone be?

Money, cars, a nice house or condo, these are all possessions and assets associated with the wealth we all dream of having. Reading quite an extensive pool of articles on the internet and in various magazines, I have compiled a list of the 7 most influential guidelines for a young investor to cultivate in order to champion his/her dreams.

1. To Retire Rich, Start saving Now.

I’m sure many of you have heard this before and seems like simple advice. However, the importance of this point deserves emphasis and repetition. Consider a goal of accumulating $1 million by age 65 and that you are able to earn 8% return per year. According to T. Rowe Price Associates (A mutual fund company), if you put off investing until you’re 45 years old, you will have to sock away some $21,900 a year. However, if you begin investing at age 25, you’ll need to make an annual investment of just $3,900. That’s a big price to pay for procrastinating.

2. Get the Debt Saddle off your Back.

How would you like to earn 18% return immediately? Pay off those credit card bills and other high interest loans you may have. By paying them off, you eliminate the high interest charges that you incur (As high as 18% on many major credit cards). Some of you may argue that you’ve been earning more than 18% from your stock and mutual fund holdings.

Let me inform you that the historical average annual return from stocks is about 10.7% (Stocks being represented by the S&P 500 Stock Index). In other words, don’t expect the 20%+ returns that we’ve been experiencing these last couple of years to be the norm. Furthermore, think for a moment how you would feel if you owed $3000 in credit card debt at 18% interest and your $2000 mutual fund investment is down 30%. In general, I don’t believe people should undertake an investing commitment while carrying debt.

3. Don’t Confuse Saving with Investing.

Many of you are also intent on saving for a house, a car, higher education or something else. By all means, continue saving, but don’t invest your savings in stocks and stock mutual funds if you plan to make a large purchase within the next four to five years. Remember, investing will work wonders for you, if and only if, you put time on your side. Time periods of less than five years may not give you enough time to recover from a substantial market drop.

Though some of you have never experienced a sustained down market ( otherwise known as a “Bear Market”), let me assure you that they are not a thing of the past. And luck usually has it that when people invest for short time periods, a “correction” or “bear market” rears it’s ugly head right about the time you need your money. Get the picture.

The sensible thing to do when saving money for a short-term objective is to invest in a certificate of deposit, short-term bond fund or money market fund.

4. Take Full Advantage of your employer’s retirement plan.

These days many employers have the 401(k) type retirement plan, whereby, you the employee are responsible for contributions and how you want the money to be invested. These plans offer a great opportunity to accumulate enormous sums of money. The money that you contribute from your paycheck is tax-deductible and will grow without being taxed. Some companies will match your contributions, but even if your company doesn’t, a retirement plan is still a great wealth building tool.

5. You don’t need large sums of money to begin investing.

Out of the 2,266 equity mutual funds investing in the U.S. stock market, 180 have a minimum investment of $250 or less, according to Morningstar. If you choose to be a dedicated investor, there are even more options. Many funds will waive their regular minimum if you commit to an automatic investment plan where money is taken out of your bank account and put directly into the mutual fund.

An automatic investment plan is a terrific idea for a young investor and here’s why:

 
• You pay yourself first every month before you pay the bills and before you start spending
• It turns you into a disciplined investor
• It’s affordable as I mentioned before
• It helps you avoid the pitfalls of market timing
• You will be a smart investor because you’ll be buying more shares when prices are low and fewer shares when prices are high.(known as “Dollar Cost Averaging”)

 

6. Steer Clear of Journalism’s short-term time Horizon

Journalism tends to have a negative bias and a very short term horizon( day-to-day for newspapers and minute-to-minute for CNBC) which is exactly the opposite of where your focus should be — on the long term. The constant stream of information concerning every up or down tick of the market is causing many people to “micro-manage” their investments. I caution you from trying to make sense of the markets’ short-term trends. Stay focused on your investment goals and not every newspaper headline.

7. Choose Stock Mutual Funds for the core of your portfolio.

Mutual funds are terrific for the young investor because they allow investors to own many company stocks without having to shell out large sums of money. Assuming the fund is properly managed, it should provide exposure to companies in several different industries. For starters, I would look for a conservative fund that invests in large company stocks in many different industries.

Before I wrap this up and let you get on your way, I want to remind you we cannot count on the government,unions or big corporations for income and health care in retirement. Therefore, you must view stocks as a defensive investment necessary for combating the biggest risk facing us all: Outliving your money.

The following is simply a Just for Laughs article that is intended to bring about a giggle. Enjoy!

Tired of being a successful investor? By following these rules, you can return to your humble roots and make your less wealthy friends tolerate your company again:

1. Believe in the “Experts”

Why should you do your own stock research when there are “experts” around to do all the work for you? If Jim Cramer thinks Starbucks is going to be hot, just reach for your wallet! Or, if your wealthy brother-in-law knows of a great high-tech IPO, write down the name on a cocktail napkin and call your stock broker in the morning. After all, if they’re so smart, why aren’t they rich?

2. Hire Your Own Personal “Expert”

Speaking of stock broker, we strongly recommend hiring someone to make your investment decisions and transactions for you. After all, if you want to lose your shirt in the stock market, one of the best ways to get the job done is to pay a lot of money in fees and commissions. That way, you take on all the risk yourself, are completely dependent on someone else, and any pesky returns wind up funding your stock broker’s vacation trip to Tahiti, not yours.

3. Rely on Your “Inner Knowledge”

You know those investors who research trends and movements in different industries before they select stocks to invest in? Go ahead and scoff at them. You don’t need book knowledge – just a couple of hunches mixed together with a gut feeling and stirred up with a healthy dose of confidence. While you’re at it, toss your stock analysis software out the window. After all, you already know how to lose your shirt at the horse track (just bet on “Hot Chocolate” in the first race, and “Footy Pajamas” in the second race, because they bring up such fond childhood memories). How hard could it be to achieve the same results in the stock market?

4. Be Optimistic

In the stock market, it’s best to look on the bright side of life, so get out that sunny disposition! We strongly recommend telling yourself affirmations in the mirror every morning (“I am a masterful stock market investor, and dog-gone-it, people like me”) and maybe giving your portfolio a pep talk every now and then, too. Because if you want to lose your shirt, attitude is everything, right?

5. Buy High and Sell Low

It’s no fun to buy when everyone is selling. You feel like, “What kind of fool am I?” On the other hand, when the market is hot, and everyone is in the buy, buy, buy mood, that’s definitely the time to buy. You’ll be sure to lose your shirt when you are forced to sell at a tenth of the price.

6. Turn up your nose at index funds. All of them.

Index funds are for wimps. That includes exchange traded funds, too, like the QQQ. After all, index funds are basically a passive way to achieve the same returns as the market over all, with low overhead. And that’s not what you want, is it?

7. Put all your money in the same basket

If you love robotics, or biotechnology, be sure to invest only in those stocks. And while we’re talking about the same basket, make sure that you not only invest in the same industry, but that you only invest in stocks. None of this diversification nonsense, or a portfolio that includes bonds and cash.

Use these tips and not only will you find out whether your spouse really loves you, you might also land yourself in a lower tax bracket. (Take that, Uncle Sam!)

This is a guest post written by Jim Gianoglio of High Growth Stock Investor. Find out how the HGSI stock tracking and stock portfolio software can help you make informed investing decisions.

Now… all my ramblings aside, lets talk stock market RIMM.

RBC Capital Markets analyst Mike Abramsky sees plenty of catalysts for Research In Motion Inc. (RIMM) even in uncertain markets, including an exploding smartphone market, new product launches, and resilience against Apple Inc.’s (AAPL) iPhone.

The analyst gave RIM an outperform rating and a C$165 price target, a 43% upside on current stock price.

Now, generally I’m not one to follow analysts’ hypes, however lets get realistic here. We are afterall talking about The King of Business Smartphones. Alot of people have been comparing the iPhone to the Blackberry, yet there are differences in the perception of the consumers. Many surveys have concluded that the corporate gathering find the Blackberry as a more trendier and subtle gadget to fit their needs, while a younger more media-oriented generation have dedicated themselves to the iPhone. Now, don’t get me wrong, I am in no way bashing the iPhone. I think it is a wonderful device, but as far as stock market price potential for growth goes — Blackberry wins the battle without a doubt.

Moreover, I was highly dissapointed when they released the new iPhone. I mean, all they added was a 3G capability and a few other minor adjustments — nothing big, except the price tag! Looking at the Thunder and Bold they are completely innovative and offer a brand new look and style versus its predecessors.

Mr. Abramsky even sees a potential upside to this competition, to expand the overall Smartphone sector. He wrote:

We expect RIM to benefit globally from the iPhone launch, similar to the impact of the iPhone in North America (we estimate Blackberry unit sales through AT&T (T) rose 100% above pre-iPhone levels).

Another Research Capital Analyst, Mr. Agostino is also bullish on the stock with a C$175 price target, close to the Bloomberg consensus of C$171 (22 buys, 6 holds and 3 sells).

Both analysts pointed out that RIM also enjoyed a wide channel leverage (over 350 agreements worldwide) and a stellar management team underpinning flawless campaigns execution.

Mr. Agostino said:

The euphoria around the launch of the iPhone is now over, and the limelight is now going to switch back to RIM in the coming weeks.

Now lets quickly analize the current Price vs. RSI vs. Volume Chart of RIMM:

As you can see, I would expect to buy in around $110-112 as it is currently on a downward trend most likely up until Friday’s close, with Monday kicking off another increase in the price level. Expect this stock to follow up with another brilliant Quarterly Earnings report for their 2nd quarter results which are due on Sept. 25 2008. This is a great investment both in the short-term (during the quarterly earnings crunch) as well as long-term (brilliant management + research & development departments).

I know my next phone will be a Thunder, do you own a Blackberry or plan to buy one?

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Perfect if you want to test the waters on facebook and even more so if you’re already spending a fortune with them.

So far I’ve achieved some nice results from this campaign. The average time spent on my site from Facebook ads was just under 5 minutes, pages visited 2.29 and the bounce rate is around 45%.

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Have you ever wondered what make the stock market rise and fall? If you watch the news at all, you will have seen the stock market prices tumble into a deep red sea one day, while rising through the clouds the very next day. Why stock market prices behave in such a way is a complex question with an even more complicated and intricate answer.

There are many factors that affect the price of stocks: Included is inflation, interest rates, domestic political unrest, war or terrorism, crime, fraud and oil or energy prices to name but a few.

All of these factors will drive the price of the stock market up or down. However regardless of these factors, the price of stocks is liquid and it is determined by how much buyers are prepared to spend and how much sellers will take for their stock.

Simply Demand and Supply — that which breathes life to the Stock Market. Understanding this concept can be a strenuous task, as it takes years of hard work to truly champion the seemingly endless abyss of market analysis.

Usually, to tame the rate of inflation, the federal government hikes interest rates. While this slows the inflation rate, it also raises the interest in small lending institution stocks (these are guaranteed by the government, thus VERY attractive here). This in turn moves investors away from equity stocks in lieu of the guarantee available with the small lenders. Risk here is lower, obviously.


This affects stock prices in several areas of the market. What happens is this: say a stock was selling at $20 per share before the interest rate went up from 5% to 6%. So the stock price is figured like this: 1/. 05= $20. After the hike, the price is now down to $16.67 per share or 1/. 06. This represents an almost 17% drop. Taken right across the market, this can adversely affect many other stocks as well and drive the market down temporarily.

A spike in oil prices can and will affect auto prices, food prices, gas prices and many others, thus effectively pushing inflation upwards. This presses the government to raise interest rates and we have the example above all over again.

War abroad can affect the market, too. A recent example is the war in Iraq, which has driven oil prices up to unprecedented levels. We have all seen the exorbitant gasoline prices that have been the result, but now we are seeing hikes in home lending, grocery prices and transportation costs also.

So as you can see, there are many scenarios that can unfold and affect how the stock market prices rise and fall. All these factors play out together in the rise and fall of the stock market. If you watch it closely, you can pick out the trends and accurately predict price hikes, interest rate increases or when inflation will occur again.


Another factor in how the stock market rises and falls is foreign currency rates. As a particular currency fluctuates, stock prices in companies based in that country will react accordingly. When the Japanese yen falls, so does interest in Japanese technology stocks. Conversely, if the US dollar falls to dangerous levels, our government simply prints some more paper money and places it in circulation. This, in my personal opinion, creates a false sense of security in the economy.

US Fed Printing Money to Avoid Immediate Banking Collapse = Higher Long-term Rates

However you look at it, stock prices affect how we live each coming day. All aspects of our daily routines are affected: Grocery prices, gas prices and the cost of living just to name a few. So watch the stock market closely. It affects you whether you know it or not.

Remember, what makes or breaks a Winner is passion for the simplicity, not the lust for the rewards. Years of endless dedication to analyzing price highs and lows, tireless hours spent searching site after site for the latest news headlines — searching for that one instant mouse click that could skyrocket your portfolio. Your heartbeat raises, your palms become sweaty, you look at your computer screen and you smile. Why? Because you realize you have now become what you were meant to be: An Investment Mogul.

Investing is not just a way of making money for me — Investing is my passion, my desire, my love in life.

What does investing mean to you?

http://www.google.com/ig

http://www.smartmoney.com/map-of-the-market

Feel free to leave any additional comments on the resources you use for your investment needs in the section below!