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Buffett sees no double-dip

Warren Buffett said the prospects of a double-dip recession are off the table based on what he's seeing in Berkshire Hathaway's (BRK.A) numerous businesses. "I am a huge bull on this country. We will not have a double-dip recession at all. I see our businesses coming back almost across the board." (Bloomberg)
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By Gareth Soloway on September 13th, 2010 12:39pm Eastern Time The signals on Exxon Mobil Corporation (NYSE:XOM) and Goldman Sachs Group, Inc. (NYSE:GS) could not have been clearer. For those of you that read my two posts earlier you see the results now. Feel free to look below on the blog and see the previous posts. I pointed out how Goldman Sachs had run into a major resistance area with a key gap fill and the daily 200 moving average. In addition, I pointed out that Exxon Mobil was negative on a day when the markets were looking strong. Both these stocks are leading indicators and if you had shorted the market like I did, along with my members, then money would be starting to flow into your pockets. Learn the true keys to the market, not the nonsense that the media spews. To gain more insight, analysis, guidance, swing trades and education, join the Research Center. Gareth Soloway Chief Market Strategist www.InTheMoneyStocks.com
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By Nicholas Santiago on September 13th, 2010 10:16am Eastern Time This morning the stock market indexes are trading sharply higher to open the week. On Saturday September 11th the Chinese government said that growth continued to expand more than expected throughout the country. Recently, the global markets have been taking their cues from the Shanghai Index(China). When the China data is strong the stock markets around the world seem to inflate and trade higher. It is also very important to note that the U.S. Dollar index will usually decline when the Chinese report this positive economic data. As many of our readers know when the U.S. Dollar Index declines the major stock market indexes will inflate and trade higher. The opposite is true when the U.S. Dollar Index trades higher the major stock market indexes around the world will usually deflate and trade lower. Therefore, the stock market indexes seem to move on the Chinese economic data and the action in the U.S. Dollar Index. When will China decide to tighten their credit markets again? This is a question that many trades and investors are asking. Earlier in 2010 the Chinese government did make it more difficult for potential borrowers to get credit for second homes and real estate properties. This action coincided with a rise in the U.S. Dollar Index during the the first half of 2010. As the U.S. Dollar Index traded higher the stock market ultimately rolled over. However, in late June the Chinese government decided to loosen credit to potential borrowers for real estate and the markets around the world began to inflate higher again. It is important to also note at that time the U.S. Dollar Index began to decline. Once the U.S. Dollar Index declined the major commodity stocks all rallied sharply higher. Stocks such as Freeport McMoRan Copper & Gold Inc.(NYSE:FCX), and Cliffs Natural Resources Inc.(NYSE:CLF) have risen about 50.0 percent since early July. These are major moves higher in just over two months time. Let us first tip our cap to the Chinese economy who seems to be clicking on all cylinders. They continue to grow at an alarming rate. However, if the Chinese have looked at past history they certainly know that they do not want their economy to overheat and reach bubble territory. Therefore, it would not be a surprise if they begin to tighten their credit to potential borrowers in the near term future. Should the Chinese make any moves to reign in the loose credit lines it will have a negative effect on the global markets across the board. We shall see what happens very shortly.
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Cable H4

This trendline is still pretty much intact on H4. Failure at big round number 1.55, and we are again back at 1.5340. I'm looking for retrace to sell into this rally down, and hopefully we will see 1.53 round number break?

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Can The Small Investor Surive In This Market? (NYSE:SPY)

By Gareth Soloway on September 11th, 2010 4:22pm Eastern Time Let's face some basic facts when it comes to investing or trading. The markets are an avenue to transfer wealth. Small weak money gets bullied by smart advanced money. In essence, institutions using technology and expert traders take money from weak, individual traders and investors. This has been how things have been throughout history but in the markets of today, it seems to be much more rampant. We must analyze why and discover the true ways to avoid these pitfalls if you are a retail investor or trader without the resources of a monster hedge fund or institution. Years ago, the markets were a great place to put money for the long term. Investing for retirement was the name of the game and this is how many baby boomers built their nest eggs. However, over the last ten to fifteen years, the markets have gone sharply higher, fell hard, gone sharply higher and fallen again. If you had invested money in 2000 or 2001, ten years later you would be lucky if you had made a dime. Look at the chart below showing the SPDR S&P 500 ETF (NYSE:SPY) monthly. Notice where the markets were ten years ago. In addition, note the M-A pattern which is scary and will be discussed at a future point in time. In recent months, the markets have started to become even more volatile and choppy. Six to ten percent swings in the market are occurring every few weeks. Swing traders and day traders are getting whipped in a market and the average investor believes the markets are fully rigged. Are they mistaken? Not necessarily! In all fairness, the way they are run are not that much different from how they were in the early 1900's. Institutions and big money still control the markets like they did back then. However, there is one major difference. The speed at which the markets moved was slower due to lack of technology. In the market of today, the swings are violent and wild as computer programs have taken over. Black box trading programs run by institutions are ruling the markets as well as mega money hedge funds. The media is often utilized to also transfer wealth by blasting the overly bullish or bearish sentiment to the average trader and investor. If you have not figured it out yet, the markets are being whipped to maximize profits to the big players through psychology. Get the common investor and trader to be overly bearish and smack the market higher, taking their money. Just as things seem perfect once again, the economy ready to recover and the average investor has invested on the long side once again, slam the markets down, taking their money. Technology has created a perfect environment for this to occur almost weekly. Black box trading programs, mega money flow from institutions and the media pushing the rhetoric causes the small investor to get lost in a sea of whipsaw. The average investor and trader has no shot. If you have no help, it is wise to not even risk your hard earned money and step aside. Will the small investor vanish forever? Much like those from the Great Depression who would keep money under their mattress, many retail investors will be very gun shy for years and decades to come. However, greed will prevail, they will be back and trying again at the first sign of stability. Unfortunately, the stability will not last long as this game will be repeated again and again. In addition, with the emergence of new markets like China and India, there will be new money flowing all the time to keep the hungry institutions fat. Do I swing trade and trade? Yes, of course. I spent years studying the markets, learning methods and creating proprietary methods that I teach to my members. Through these methods we can avoid many of the pitfalls most retail investors and traders fall into. Learn and profit. Gareth Soloway Chief Market Strategist www.InTheMoneyStocks.com
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http://www.marketoracle.co.uk/Article22550.html The Fed is proposing another round of “quantitative easing,” although the first round failed to reverse deflation. It failed because the money went into the coffers of banks, which failed to lend it on. To reverse deflation, the money needs to be funneled directly to state and local economies.
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