We are moving on up!

When I was a kid sometimes I got lucky and got to stay up late on a Friday night to watch Johnny Carson. Johnny Carson did a skit where he was the “Great Carnack.” The Great Carnack was able to predict the future! Today we have the “Bernack” Ben Bernanke, the head of the Federal Reserve and the United States monetary policy. Like the “Great Carnack” the Financial Community hangs on to every word that the “Bernack” pontificates. Yesterday, For the first time in Federal Reserve history Ben Bernanki gave a press conference to shed some light on the Fed Monetary Policy. Lucky for every one here I spent my afternoon listening to the “Bernack.” His conference was nothing exciting, be thankful for that because if there was a new economic development our financial markets would have been rocked. While his conference was benign and with no surprises he predicted his same monetary policy of a LOW INTEREST RATE policy to grow jobs only concerned about inflation from a distance. His fear of a no job growth economy is more of a concern of that of a strong US Dollar. Which means the dollar will continue to decrease in value and equities and commodities will continue to rise. The markets DOW, SP500 and Nasdaq all did well yesterday. The SP500 finally finished above our magic 1350 level at 1355.

Is it all systems go yet? Almost, but we must see just one or two more closes over that 1350 level. Will the markets be off to the races? Probably not, we are starting to come into the summer months which marks low volume and Wall Street Traders going on vacation. Because Ben Bernanki’s policy dosen’t give investors many choices to do with their money. Institutions have to deploy money on a monthly basis, the only choices for funds are equities or gold / silver at this point which means stocks and commodities should go up.

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Silver Gold vs. Companies SLW

SLW I've noticed that a lot of the members the past few days are really getting hung up on SLW. I just don't get this at all. All along we have been talking about the SLV and GLD as the ones to hold. Now I know in the past we spoke very highly of SLW but I know this endorsement was one of "as long as the COMPANY and Chart was working. Which during that time it was. The big difference between the two is that one is a company and the other is an ETF. SLW has real earnings to produce and humans at the wheel unlike the SLV which is a proxy of what the world market is for silver. Look at the chart for EGO, would you ever want to own EGO over GLD? NO. How about ABX? NO the companies just don't work compared to the EFTs. So why are so many people trying to WILL a trade? SLV is up from from FEB to Now 26.00 to 45.00 darn close to a double why is anyone fighting this? GLD same chart compared to the COMPANIES. Your charts are not only giving you a home run but many here are not swinging a the ball insisting on a different pitch. We haven't seen a slow pitch softball like this since 07' GOOG or the March 09' bottom. Don't buy the Companies!

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Are you ready to make some cash?

Where are we right now? We are exactly where we were last week in the SP500. That’s not a bad thing at all, as a matter of fact it’s rather constructive to be stuck right now. The SP500 has come a long way since the 1260 low in mid March. We are currently bumping around at 1330 for the past few days. Resistance is right here at 1340. 1340 was also the prior high from mid February. So what does this mean to you? It means that you need to be somewhat involved until the bull is proven wrong and starts to roll over from 1330. If the SP500 rolls over here, and what I mean by this is that the SP500 starts to fall below 1325. If this happens you need to close your positions until it’s safe.

So what is it going to take to get over 1340 / 1350? Well it’s going to take a few things. The good news is it is happening in a slow constructive way. Buyers (Mutual Funds) are coming back in. We know this because the bull just will not stall. Even though Volume has been less than great it is still buying. Fed policy is still Equity Positive. Interest rates are low and the Fed is still expanding the US Balance sheet even thought this is very dangerous for our long term monetary policy, because of this, equities are the best investment.

Where should we have our money currently? The Transports are leading the way. Train stocks, CSX, KSU, WAB and UNP are some of the good choices. Heavy Equipment, CAT and DE are moving. Energy too, PBR, RIG RRC, PCX, ACI and KOL. Finally GOLD and SILVER just continue to climb setting new highs it seems every week.

Now, I am not suggesting for you to pile in right here, I haven’t, but you got to have some things working right here from the above choices, which I do. Once the SP500 gets through 1350 on CONVICTION we have blue sky above and that is when it’s time to really get aggressive. Right now I’m optimistically Bullish and waiting with my guns loaded for a push through 1350. I’m currently holding CAT, DE, FCX, SLV, LULU, and F. Wanting to buy WAB, PCX and more SLV.

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