The market has held up better than expected and rallied off the 100-day MA.  The problem is it occurred on low volume as professional investors and traders are wary.  The market is being largely sustained by cheap Fed money. Mortgage rates for fixed mortgages are under 4% in some cases.  Treasury bills are at essentially zero so investors are scrambling to find things in the market with a yield.

A local radio show had a senior citizen talking to a broker about buying bank preferred stocks to try to get 6% yields.  The problem is when rates go up, the value will drop.  Fed chairman Ben Bernake for now is leaving the cheap money punchbowl at the party table but when it goes it will take down the market.  The U.S. economy is 70% consumer spending and the public is hurting.  Job growth is non-existent.  We are not bullish and are very wary. Greece and other southern European countries are broke like some U.S. states.  We will keep members up to date and will run EWS on a daily basis.  The upside potential is limited while the downside risk is large.

Recent Triple Trade & A Little Patience

Over the past few years using our models, Triple Test and other systems; we like cash or money markets while waiting for opportunities.   Here is a Triple Test trade. We will not mention all the details in this public venue, but members can see what happened or check the TT articles.

This required a little patience. TT trades usually reach their targets on average about 42 days.  This trade took about a month longer.  The return was about +30.2% during that period, the annualized return would be much higher.

New Member Services & The Professor & The New Security

We are working on new member services that will be launched. The Gold System will be one of the services.  We are also working on a web based program that may also have intraday and end of day charts, alerts, built in trading, back-testing and many more features.  The alerts can be sent by email, text or IM message or other small device messaging like I and G phones.  We have not named the program yet but it may be Power Tech or Power Investor 2.0.   The program will be extremely powerful and we are looking at support for U.S. and other markets including Canada, Australia, Europe and Asia.

We are spending a lot of time analyzing The Professor’s data.  We know the results are good because he is working with a respected wealth manager. The firm only manages portfolios for wealthy families. We are about in the middle of the research and are excited.  We are from the “show-me state” mentality and want to check everything ourselves.  We are hopeful that we may be able to offer some of The Professor’s research to members as part of the new services.

We mentioned two new securities that we helped design that are really a new asset class.  At this point we cannot provide any details but we think they will be available by September of this year.  We will have more details at that time and we think they will be a powerful alternative for investors looking for return and safety.