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Kusel Equipment has been a leader in the stainless steel floor drain industry for over 20 years. Kusel has a variety of floor drain solutions for every industry niche. Over 33,000 floor drains have been installed! A variety of industries can use Kusel drains for various applications: Beverage Processing and Production, food service and commissaries, biotech and pharmaceutical plants, health care, chemical plants, hospitals and medical care, construction and engineering, hospitality and travel, consumer goods, distribution, restaurants and related food service, energy and utilities, and food processing and production. The unique stainless steel design is resistant to acid, corrosion, and staining. Kusel’s stainless steel floor drains also resist bacteria and quality control will benefit from these features. There are a variety of floor drains Kusel Equipment offers. Their largest line is their KE Series which features special duty drains. Kusel Equipment square top drains are specifically designed for tile or cement floors. The square top drains feature removable solid or perforated baskets and are available in various stainless steel grades for more corrosive environments. All Kusel square top floor drains are USDA accepted and NSF listed. All Kusel Equipment drains are customizable to client needs. The KE Series also features the round top drain. A ring replaces the square top plate. The round top drains deliver the same sanitary benefits and environmentally friendly design. Kusel Equipment’s KE Series also feature a side outlet drain for unique applications. The drain is available in three and four inch outlets and in various grades of stainless steel. A low profile stainless steel floor drain is also available for shallow slab requirements. It is built around the KE-100 floor drain but has a modified bowl and basket assembly. It is also available of various grades of steel. It should also be noted that any KE series floor drains are also available with an optional cone bottom to the outlet.

Although in many ways in the net era it looks like an obvious gambit, up until now the acquisition of subprime auto loan portfolios had occured through numerous marketplaces without a single outlet. They can now be acquired using a technology made popular as a result of the development of e-commerce: the online bidding system patterned after Ebay. Investors, banks, et cetera can pick up portfolio packages on a nationwide platform to find offers at often significant discount. Smaller packages thus turn into a smart investment, leaving the market more open to all investment. The golden rule in sales is to make sure that your potential customers are aware of your product, and there has bever been a more effective way to get the word out than bringing to bear the power of net sales. Time and place are no longer of significant importance and it’s possible to do business day and night, which saves everyone a significant amount of money. When selling loans, bank or other business needs to be able to contact the greatest possible number of customers. In order to optimize the identification process, those registered with this service will be given any data they request to make their business more efficient. When selling portfolios, the more information you can use, the better the results will be. During examination of any kind of loan portfolio, data transparency grants a fuller awareness of what you’re effectively buying and accordingly reduces the overall exposure you operate with.

By employing the novel standardization and transparency offered by this service you will become in a position to handle your investments yourself without having to solicit a third party broker. Both sides of each transaction will benefit from honest negotiation, with the full actionable data to sell loans entirely in the open and on the table, i.e. exactly where it will do the most good.

Easier selections of how to invest are made possible by keeping the packages standardized instead of fragmented. The economy here isn’t merely financial as a speedy sale saves time on both sides of the deal. Using this information access, the open bidding system creates the chance for everyone involved to strike the deals they desired.

Web trading is able to exploit the endless opportunities of e-commerce. Dealing in online portfolios broadens your reach significantly, it creates a standard for data and leads you to the perfect package to strengthen your investments.

Strange to think that before now, you could never use a single marketplace for buying distressed loan portfolios. This shall no longer be a cause of irritation, as a business has recently emerged with the intent of using the evolving methods of internet commerce to establish a centralized marketplace.

Packages put together for this bidding platform are put up for bid at reduced prices to increase your buying power. Minor packages thus emerge as a worthwhile purchase, meaning the market becomes more open to all investment. Size and credit quality are no longer barriers to investment.

Get better access to banks and investors by employing the reaching power of any internet business — take care that you’ve publicized what you have to offer to investors. With the emergence of a business model loosed from the constraints of time and location many other limits are removed and time can be saved.

Any and all viable customers should be investigated and reached if they are to be made aware you have portfolios they might be interested in. Since we know this, by registering with our site and listing loans, you get whatever essential data, whenever you want it. Dealing in loan packages will become much easier, and so much more efficient.

As with a great many businesses, the amount of data you have at your disposal affects how well you will actually do. This sector of financial opportunity obviously holds more exposure than others and the wisest method of avoiding these, too, is comprehensive information. So how much is transparency worth to you?

The standardization of information on loan level sets control of selling loan portfolios directly in your lap, rather than in the hands of a third party broker. Because of the desire to strike a balance between profit and exposure inherent in the loans business, frank negotiation taking transparency of information to be paramount proves profitable for both sides of the deal which makes full information disclosure dependable. Smarter selection of what to invest in are created by keeping the packages standardized and not fragmented. Time is not wasted in this manner — not merely for the investor but just as importantly, of course, on the dealer’s side. Remember that this service permits for a bidding strategy, and naturally there’s many prospective investors waiting to strike a deal, who all be granted the same information transparency. At the end of the day, this system definitely puts all investors on even footing. Remember, the web has created you boundless chances for the asking, and the scope for deal in loans is on the brink of splitting wide open. Numerous businesses have faltered as internet commerce entered their form of commerce, merely because they didn’t embrace it — those who did are now prosperous.

The announcements break forth as aeroport impress modify kick that real estate in Dalaman was up for . cardinal many popular buyer . Passengers from Finningley ordain also be incognizable to fly to not that sort Polish city next pass post Wizz Air introduce its route to Wroclaw. unsteady Conti identified Turkey as a allegro-change market, noting that 13 per a damn of its mortgage so far this year haunted the country, create it the ordinal Earlier this month, international mortgage steady Operators Thomson and First Choice decide run an unscheduled As revealed by the Free Press in May, Peel Airports – that runs Robin Hood, Liverpool’s John Lennon and Teesside – is go a buyer for 49 per rial of its uncastrated aperiodic adorn to Dalaman in Turkey. The three places noted as kick upstairs are Dalaman property, Belek (seeing that it is warm the Olu Denz shoreside area and Altinkum with its new . unfixed. castrated traffic in a bid to learn the fixed The journey operator has occupy irradiate with from customers who became ill during or soonest past a delay at the 1,000-live holiday rugged on Turkey’s Dalaman coast.

Hurghada in Egypt and Tenerife in the Canary Islands symbolize tipped as good prospects. scheduled periodical fly to Monastir, in Tunisia, conformable to launching the route two ago, as well as an additional periodic Property Abroad said the country is develop in attraction with holidaymakers, from Britain, as its lira has a more affirmative change evaluate with the move than the from the point of view of UK . All of these get cheaper apartment and of rent demand, the utter. Those check for the beatific pass judgment to fit out in overseas farm archean in screw rest advised to consider Turkey.

he difference between regular savings accounts and Individual Savings Accounts (ISAs) is that all interest earned from ISAs is tax free. So, while regular savings accounts may have a higher interest rate, but because that interest is not tax free ISAs pay out more. However, early withdrawal from ISAs will often either penalize you with lose of your interest or the tax-free status of your interest.Each tax year an individual is allotted a certain amount to invest into ISAs. As of 2009 people over 50 are able to invest £10,200 per tax year. People under 50 are limited to £7,200 per tax year.ISAs can be invested in two ways. An individual can open one cash ISA and one stock or shares ISA every tax year. Only £3,600, or £5,100 for over-50s as of October 6th 2009, can be invested into cash ISAs. Individual’s can invest the remainder or entirety of their yearly allowance into a stock or shares ISA.The difference between cash and stock or shares ISAs lies in the risk factor. Cash ISAs are less volatile, thus make more sense for short term investing. As long as the interest rate is higher than the inflation rate cash ISAs will earn a profit. Stock or shares ISAs have a higher risk factor but can pay our more. Individuals are not required to invest all their money into one share for their ISA; they can split the investment between multiple funds.ISAs can be very profitable, so long as proper research is put into the ISA you invest in. There are many different types of cash ISAs with the best interest rates and accessibility. Stock or shares ISAs allow you to invest in shares, bonds, unit trusts, investment trusts, exchange traded funds, or open ended investment companies.

(1) Stock Market is Tough Place to Make Any Money
Consistently

NASDAQ or SP&500 averaged about -6% per year for 5 years
between 1999 and 2003. Many individual investors who made
killing in the internet bubble period got wiped out during
those 5 years. Many who trusted Wall Street experts by
investing their life savings into mutual fund had rude
awakening after the huge loss and scandals in many of the
famous fund names.

Numerous academic studies have shown that more than 90% of
mutual funds failed to beat market over the long run and
that more than 90% of individual investors lost money in the
stock market. Too many people and too many Wall Street
experts or mutual fund managers are buying and selling
stocks like madmen, with no sound strategy or any hope of
long term success. Ironically, they’re the ones who create
opportunities for prudent, long term oriented investors.

To be successful in stock market, you either have to become
an expert yourself or to seek help from real successful
experts. Stock market is such a brutal place that there is
no room for half-expert or expert pretenders. The truth is
that only a small percentage of disciplined and experienced
people earn disproportionate huge amount of return, many
times at the expense of the rest. It is an insult to “Wall
Street expert” professional title when so many of such
“expert pretenders” failed to beat index or merely stay
break-even.

(2) Majority of huge performance claims in Ads by “Experts”
are not real

Too many investment newsletters or hot mutual funds touted
their huge past performance and went into disaster later on.
Who do you believe? I have been in this stock market long
enough to know that majority of their claims are not “real”.
I will tell you why below.

The first reason is simply due to “cheating”. Let’s be
honest about many Ads. Many of them do not tell the whole
and true story of their performance. For example, they would
tout huge percentage of gains for certain winning stocks and
hide the losing stocks. If you look deeper into their whole
portfolio performance, their portfolio performance was not
impressive at all. Many investment newsletters will have
multiple portfolios in publication. In their ads, they will
only mention the performance of the winning portfolio and
hide the losing portfolio. The problem with multiple
portfolios is that when you subscribe to their newsletters,
you would not easily know which portfolio out of many will
have best performance in the long run. Which portfolio do
you follow? Most important of all, which portfolio out of
many does the newsletter author invests for his/her own
money? If the newsletter author or the mutual fund manager
does not invest into a portfolio himself or herself, how
would you trust their services?

Even if past performance of a newsletter or a mutual fund
was pretty good, it may not indicate good performance in the
future. Many hot technology mutual funds jumped up 100% or
more in the 90’s and dived to their death after 90% to 99%
of loss. Certain investment methods such as growth stocks
investing are known to be risky. Momentum investing or day
trading methods are known to be extremely risky methods that
can wipe out life savings over night. There is simply no
free lunch. While a risky method can produce fabulous gain
in relative short term, over the long run, a risky method is
more likely to make people poorer rather than richer even if
a short term gain was gigantic. Gigantic short term gain is
just a dangerous stock market trap to lure the inexperienced
people into the market. Dreaming for instant satisfaction of
huge short term gain overnight with speculation is just a
recipe for disaster ahead.

(3) Value Investing is the Only Proven Safe Method

Value mutual funds are well known to have lower volatility
than growth mutual funds. Numerous industry and acedemic
studies have shown that value stocks as a group performed
far better than growth stocks in bear market. Many
technology and internet so called “growth stocks” lost 90%
to 99% of value in just a couple of years after 2000 while
many value stocks went up during the same time frame.

In fact, the single most important element to obtain high
investment performance over the long run is to maintain
MARGIN OF SAFETY of a portfolio. That is why the greatest
investor Warren Buffet once quote “Rule No.1: Never lose
money. Rule No.2: Never forget rule No.1.”.

(4) Value Investing is the Proven Method to Make Big Money
in the Stock Market

I know that I’m going to catch a lot of flak for saying
this, and that many people will misunderstand what I’m
saying. There are certainly other methods of investing or
trading, which made people rich. There are certainly many
under- performing value mutual funds, which give people
wrong impression that value investing is equivalent of low
performance with less risk.

However, I want to emphasize that in fact value investing is
investment style that can obtain high performance with less
risk. I want to stand by my above statement for the
following reasons:

* In the early years of my investment career, I have studied
and tried all kinds of well known methods of famous
investors or traders, Short term trading, Momentum trading,
Technical Analysis, CANSLIM, growth stock long term buy and
hold, Random Walk theory, etc. I have been there and I have
done there. Evidenced by my past investment performance,
value investing is the only method that delivered gigantic
investment return consistently for me over past many years.
In 2003, I have made more than $150,000 in stock market with
value investing method. In 2004, I have made even more money
than 2003 so far. With the power of compounding, there is
really no upper limit for the investment profit with value
investing.

* In 1984, Warren Buffet gave a speech titled The
Superinvestors of Graham-and-Doddsville, which categorized
performance of many famous value investors who beat market
year in and year out. Many of people mentioned in this
article are legendary multi-billionaire right now. It is
true that only a small percentage of investors can beat
market consistently. However, it is not by chance at all
that so many of students of Benjamin Graham became super
riches in America while other methods have not produced that
many rich people. It is also not coincident at all that the
second richest person in the world is a value investor named
Warren Buffet, a student of Benjamin Graham as well.

(5) Value investing will not distract your regular job

The nicest thing about value investing is that it will not
distract your regular job if you choose not to stare at the
stock market frequently in your office. In fact, it is quite
healthy to forget about stock market in your office and
worry about that only at your home after work.

Many newbies in the stock market still believe that if they
stare at stock price quote closely, they can obtain better
chances of winning. It will not. Staring at the stock quote
is least important part of this game. In fact, staring
closely at the stock price quote is more likely to create a
loser rather than a winner because of greed and fear in the
stock market. The more one is unable to resist the mad mood
of Mr. Market, the more likely one is unable to invest
successfully with value investment method.

I am not saying that successful value investing does not
require time. The time you will need in value investing
depends on the investment vehicle you utilize. If you invest
with a value mutual fund, you will not need much time in
stock market and you only need to follow up quarterly with
your fund’s performance. If you are a passive investor of my
investment newsletter Blast Investor Real-time Plus and you
follow my model portfolio passively, you will only need to
pay attention to my infrequent trade alert closely and read
my newsletter issues every 2 weeks. If you invest by
yourself, you will certainly need hours of time every week
to look at hundreds of value stock leads and do your own due
diligence by reading 10Q or 10K SEC filling, or by listening
to conference calls, or by talking to company’s management.

(6) Successful Value Investing is Hard, But You can Do It!

I certainly do not want to make you to believe that value
investing is as easy as reading couple of books. Value
investing not only requires tons of knowledge and expertise
in financial analysis, accounting, US tax law, US bankruptcy
law, etc., it also requires real life training of right
psychology to fight against greed and fear in the stock
market. It is hard to do.

However, successful investing certainly can be done and I
have done it over past decade myself. You certainly want to
look at my investing articles of this web site for more
information.

(7) You need to start early in value investing

Let’s be honest about value investing, it is not a get-rich-
quick scam and it takes time to really make living with
value investing without need of your regular job. You need
large starting principle if you want to make living from
stock market investment than your salary.

By reading Warren Buffet’s article above, you can pretty
much guess that successful value investors can achieve 20%
to 30% per year performance consistently over the long run
regardless of whether market is bear or bull although it is
possible to obtain significantly higher performance in
earlier investment years due to smaller fund size and luck.
20% or 30% more consistent investment return is already very
high return over the long run. Since Peter Lynch retired
from Fidelity, you can rarely find a mutual fund with that
kind of performance over past many years.

The best approach is to treat stock market investment as
side business in addition to your regular job. Your regular
job help you pay your bills and help you earn the initial
principle for value investing. Once your investment net
worth surpasses $100,000, sooner or later you will realize
that your regular job salary can hardly keep up with
compounded rate of investment return. Too many people
naively believe that they can get rich quick with
speculative trading method in stock market rather than a
hard work with a job and value investing at side. It is a
lot easier to make your first $50,000 net worth with a job
rather than speculation in stock market.

Even if you do not have large sum of money right now as
principle to make really big profit out of value investing,
you still want to start value investing early so that you
can learn in and out of value investing in your earlier
years of investing in the stock market. Successful
investment is long term process. The earlier you start
investing successfully, the better off your pocketbook will
be, and the quicker you will reach your financial freedom.
Let’s do a quick math, if your starting capital for
investing is $50,000 and your annual compouned rate of
return is 30%, you will need 9 years to surpass $500,000 net
worth. However, to turn $500,000 net worth into 1 million,
you only need 3 more years, think hard!

Webmasters and Ezine Publishers:
Free professional content – pre-licensed to you..

You are invited to use any or all of these value investing
articles in your publication or website. The only requirement
is the inclusion of the following, after each article…

* Article by Henry Lu of BlastInvest LLC, a premium
investment newsletter publisher in Connecticut. Visit
http://www.BlastInvest.com/ for FREE “how-to”
value investing assistance, web services and more.

Energy guru Bill Powers focuses on investment opportunities in the Canadian energy sector, mainly independent oil & gas companies and now uranium companies. We talked with him and he thinks uranium could reach $100/pound this decade.

Interviewer:
A lot of newsletters cover oil and gas, but you picked uranium, which hardly anyone was covering until recently?

Bill Powers:

I feel the uranium market right now is the world’s most unbalanced commodity market. In a sense, the world, through the nuclear power industry, consumes approximately 172 million pounds of uranium per year, and the world only produces about 92 million pounds of uranium per year. The supply deficit is made up through above-ground inventories, which are being worked down pretty quickly. Those numbers were supplied by Uranium Information Center. A lot of my information comes from the U.S. Department of Energy (DOE) or the Nuclear Regulatory Commission. For example, I discovered from them that the U.S. produced, through the 1980s, about 43.7 million pounds of uranium. And by 2002, the U.S. only produced about 2.34 million pounds of uranium.

Interviewer:
Where is uranium being produced in the United States?

Bill Powers:
Wyoming. There is also a uranium facility in Nebraska. I think there are two in-situ leach plants in Wyoming and another one in Nebraska. There are a couple of phosphate farmers in Florida who produce uranium. I believe there is a facility in Texas that also produces uranium. For the most part, the uranium industry in New Mexico has just about been wiped out. The very low prices that we’ve seen, for about twenty years, have pretty much wiped out the entire U.S. uranium industry. To go from over 43 million pounds to less than 2.5 million pounds, it has really only allowed the most productive, highest margin and most efficient mines in the country to continue operating in that environment.

Interviewer:
So that makes the U.S. a net importer of uranium?

Bill Powers:
Absolutely. According to the DOE, US imports have gone from 3.6 million pounds per year in 1980 to 52.7 million pounds per year in 2002. A lot of it comes from Canada, but a significant amount is coming from the Russians, through a program called HEU (highly enriched uranium): the megatons to megawatts program. It’s where the United States Enrichment Corporation, as well as its partner in Russia, took highly enriched uranium and broke it down into lower grade uranium that could be marketed to nuclear power companies throughout North America and around the world. This has been one of the reasons we’ve had lower prices. All of this uranium has cluttered the market the past few years. And the US Enrichment Corporation has a lot to do with why we’ve seen low uranium prices here in the States. I had a conversation with them about the fact that since 1998, when they became a public company (after being a company that was owned by the U.S. government), their long-term inventories of uranium had declined. When they became a private corporation, the U.S. government gave them 7,000 tons of enriched uranium and 50 tons of highly enriched uranium. They have been selling about 6 million pounds of uranium into the marketplace every year since 1998. According to my conversation with them, they have about three to four more years of selling. It’s because the US Enrichment Corporation wants to get out of the uranium storage business, and they want to be in the processing business.

Interviewer:
How long will it be, do you think, before USEC is going to stop being a factor on the selling price pressure of uranium?

Bill Powers:
I would probably say in about three years. For the uranium they are now selling, the cost of the uranium to them was zero. This has really made that company look very profitable. They are selling about $100 million worth of uranium every year, and they intend to do this at no matter what price. This is an extremely bullish scenario right now because uranium prices have touched twenty-year highs, despite the fact that USEC is dumping more than three percent of the world’s uranium consumption onto the market place. When this dries up, we should see markedly higher uranium prices.

Interviewer:
How high is high when you say that?

Bill Powers:
I would say up to $100 per pound. Before the end of this decade, uranium will probably be $100/pound. The Russians are going to be holding back some of their output from the megatons to megawatts project. Their (the Russian) uranium is going to be needed for internal consumption. Russia has a growing nuclear power industry. They need to have uranium supplies available. They’re not going to be selling as much as they had in previous years. It appears it is going to be very important to factor in reduced Russian supplies as well as when USEC gets out of the business.

Interviewer:
How can a sophisticated investor benefit from uranium’s rising price?

Bill Powers:
The most leveraged investments are the Canadian juniors. I believe Cameco (NYSE: CCJ) has other businesses out of uranium exploration and production, and it is a very safe way to play uranium. But I think there are far better opportunities out there. One of my favorite companies is Strathmore Minerals (TSX-V: STM; Other OTC: STHJF). I really like their business model of acquiring a great deal of very prospective uranium properties at bargain basement prices. They’re able to do this because, right now, uranium has gone through a twenty-year depression. The prices for some of these pretty far advanced projects are very cheap. I think they are well leveraged for that. Another safe way to play uranium is Denison Mines (TSX: DEN). They produce about 1.3 million pounds per year. They have properties are in McLean Lake, Saskatchewan, which is part of the Athabasca Basin. What I like about them is they are able to use their cash flow from their existing production to further expand some of their properties. With UEX Corporation (TSX: UEX), Cameco was the shareholder. UEX was founded several years ago with Pioneer Minerals. Both of the companies put in properties. It’s look like they are rapidly advancing some of their properties in Athabasca. I believe they have about eleven properties they have an interest in.

Interviewer:
What about other energy factors, such as crude oil, and what do you see happening there?

Bill Powers:
I would say crude oil is heading much higher. We have reached the worldwide production peak of crude oil, or we are very close to it. This is not very well recognized. As demand continues to rise, and world production starts a downward slope, we’re heading for much higher crude oil prices. I see much higher prices later this decade, if nothing goes wrong. What I mean by that is the natural market equilibrium price of crude oil should be $50 within the next eighteen months. And probably over $100 by the end of this decade if nothing goes dramatically wrong. That would come from the natural decline of existing reservoirs, limited new discoveries, and increasing demand. However, if a country, such as Saudi Arabia, were to have a regime change…..

Interviewer:
Are you looking for a regime change in Saudi Arabia?

Bill Powers:
Yes, there is a body of evidence that supports this. Terrorist incidents are becoming more violent and closer together in Saudi Arabia. Right now, we’re seeing those attacks targeted to the oil workers. I believe it will not be too long before those attacks are focused more on the royal family. I believe that will be the next stage in Saudi Arabia. There’s a very good chance, which history supports, is when there are sudden regime changes in oil-exporting countries, oil exports from those countries drop significantly. Regardless of what were to happen, as far as the political situation, a lot of their fields, especially Ghawar, which is the biggest oilfield in the world – it produces between 4 and 4.5 million barrels per day – there is evidence that this field could decline relatively soon. Saudi-Aramco has been injecting substantial amounts of water into injection wells to push the keep production flat What this has done is it keeps production flat, but it’s sort of an illusionary fountain of youth. If you keep injecting water, the amount of water you produce, along with the oil, continues to rise. As the water cut continues to increase, the amount of oil produced can fall dramatically. If that were to happen, if Ghawar were to go into a permanent and irreversible decline – well, it could happen relatively quickly.

There are other fields in the Middle East, such as Yibal in Oman, where they had a lot of water flooding and horizontal well drilling. Yibal has gone from 250,000 barrels per day in the late 1990s to about 80,000 barrels per day now. If we were to get that type of decline in Ghawar, the world is going to be seeing higher prices just on that. Right now, there is not any excess oil production supply anywhere in the world. A relatively small reduction in availability of supply will lead to an exponentially higher oil price.

James Finch contributes to StockInterview.com and other publications. His archived articles and interviews can be found at http://www.stockinterview.com You can contact James Finch by email: jfinch@stockinterview.com

So, you have decided that you are interested in the niche of forex trading. Now, all you need to do is determine which is the best forex trading software possible. My advice is to give yourself plenty of time to do some research so that you can find the best forex method.

If you have made up your mind that you need to break into the forex trading market, then there are some things you will definitely need to consider first. If you are serious about your decision and you truly wish to learn forex trading, then you want to take a few steps.

As a child, my dad had this saying, “You know, there’s more than one way to skin a cat.” What he intended would take me a few years to figure out. But now I understand; especially since I make the better part of my living doing forex online. So what is this forex you speak of? Well, in short, automated forex is the method of operating your foreign exchange, or forex, account on automatic pilot.

There are many different ways that you can educate yourself about online forex. One way is to have a tutor of sorts. If you know someone who is knowledgeable in forex trading, then you may want to ask him or her if he or she would be willing to assist you in learning automated forex. If having a private instructor is not an option for you, then you will need to either purchase or download an instructional book, or open a practice account and begin practicing trading in a simulated online forex market.

SPX rallied over 100 points from mid-October to late-November. Many, if not most, expected the beginning of a cyclical bear market last month. Consequently, heavy short-positions were taken, in October and November. However, it turned out, SPX rallied to 4 1/2 year highs, while a “short-squeeze” took place over the past week, extending the cyclical bull market. The rally may continue into the end of the year, although the market may consolidate short-term. Typically, steep rallies (without consolidations) lead to volatile consolidations or steep pullbacks. So, I expect a volatile week next week, and over the first week or two of December.

The first chart is an SPX daily chart that shows both RSI and ULT (an oscillator) are both over 70, which is rare for an index. Consequently, a pullback may take place within the next week. The two previous pullbacks (see circle) were both to the 10 day MAs. Currently, the 10 day MA is just over 1,243 and rising about five points a day. Other major support levels are 1,253 (multi-year Fibonacci level), 1,246 (previous four-year high), 1,235 (congestion area), and 1,227 (20-day MA, which is also rising sharply).

The second chart is an SPX monthly chart. SPX has generally traded between the middle and upper monthly Bollinger Bands over the recent bull market. On Wednesday, SPX rose above 1,270, which was slightly above the upper Bollinger Band at 1,268, and then pulled-back. So, 1,270 may be short-term resistance. The monthly Bollinger Band may rise above 1,280 next month. Consequently, it’s possible, SPX will rise to about 1,300 in late December or early January.

There are several factors driving the market. Negative sentiment tends to be a contrarian indicator and created the recent short-squeeze. Investment funds want a strong quarter to finish the year with the highest possible returns. Consequently, the best performing stocks this year may continue to rise into the end of the year for “window dressing.” Oil prices have stabilized between $56 and $59 a barrel after rising above $70, and a warmer than average winter may lower oil prices further. Expectation of a strong holiday shopping season, viewing economic data as “half full” rather than “half empty,” and a belief the Fed tightening cycle will be over early next year will contribute to keep the market high.

Charts available at PeakTrader.com Forum Index Market Overview section.

Arthur Albert Eckart is the founder and owner of PeakTrader. Arthur has worked for commercial banks, e.g. Wells Fargo, Banc One, and First Commerce Technologies, during the 1980s and 1990s. He has also worked for Janus Funds from 1999-00. Arthur Eckart has a BA & MA in Economics from the University of Colorado. He has worked on options portfolio optimization since 1998.

Mr Eckart has developed a comprehensive trading methodology using economics, portfolio optimization, and technical analysis to maximize return and minimize risk at the same time and over time. This methodology has resulted in excellent returns with low risk over the past four years.

Ever jumped out of an airplane? It’s OK if
you have on a parachute. Pretty dumb if you don’t.

Every buy any stocks, mutual funds or Exchange
Traded Funds? It’s OK if you know how much you
are willing to risk. Pretty dumb if you don’t.

Parachute investing is buying an equity
with a parachute so you won’t risk all your money
or, better yet, give back the profit you have made
as the stock or fund went up and then goes down.
If you bought that hummer at $12 per share and
during the past couple of years seen it go up to
$52 you don’t want to give back that nice
profit, do you? With a parachute you can save
most of it. How?

When you invest in any stock of fund you
must know how much you will risk before you buy it
and how much of the profit you are willing to
give back when it turns down. Take that beauty
at $12. Instead of going up it went down. Are
you willing to agonize as it drops to $5? If you
had a parachute you would have jumped out of the
plane before it crashed. If you had an exit
strategy for your stock you would have sold it
before you lost a big chunk of your cash.

The secret of a safe investment is an exit
strategy. When you bought Mr. Twelve Dollars you
shook hands and told him I’d like to be your
friend, but if you change your name to Ten
Dollars I am leaving. Maybe that that is not
very nice, but nice doesn’t cut it in the
investment world.

Mr. Twelve Dollars said I am going up and
I want you for my friend. Please follow me and if
I falter you can leave and we will part friends.
Now that makes sense. You trail along and after
it goes to $52 it does falter. Do you know where
you are going to leave or are you going to ride
it go back down to $12? In other words do you
have your parachute on?

That parachute is your continuing exit strategy
that is in place every day. In the investment
community it is called an open trailing stop
loss order. Any broker can put this in place for
you. You might be lucky enough to have a broker
who knows where to place stops, but
unfortunately there are not many of them.

The brokerage industry does not teach its
employees (brokers) how to protect customers’
money. If that is the case you might want to use
the old standard 10% rule. Have the broker place
an open stop every Friday at 10% of the closing
price of that day as it closes higher. Never
lower the stop loss. Brokers hate this as it
makes them work, but that is what they are there
for and that is how they earn their commissions.

With your parachute you can always protect
your original cash purchase from a big loss and as
your stock advances you can lock in profit as
the stock advances.

Every investment should have a parachute.

Al Thomas’ book, “If It Doesn’t Go Up, Don’t Buy
It!” has helped thousands of people make money
and keep their profits with his simple 2-step
method. Read the first chapter at
http://www.mutualfundmagic.com
and discover why he’s the man that Wall Street
does not want you to know.

Copyright 2005