* sector ko
** pe ok
~ no. of institution below 100
^ eps double

louyah analyst report & may have to do some portfolio reshuffling

While it was hardly a rip-roaring start for 2010, stocks notched solid gains in the first week of the new year.

On Friday, the indexes ended on a positive note, despite a disappointing employment report.

The Nasdaq rose 0.7%. The NYSE composite added 0.4%, the S&P 500 0.3% and the Dow 0.1%. Indexes staged a late rally to erase losses, although the Nasdaq was positive for most of the day.

Volume was lower across the board, but the week's trade was above average.

Daily charts of the Nasdaq and the NYSE composite are starting to look good — with up days outnumbering down days, and volume picking up.

Four weeks ago, the Nasdaq's and NYSE composite's Accumulation/Distribution ratings were D+ and D-, respectively. Now they are positive to about neutral.

The indexes also continue to shed distribution days. The Nasdaq eliminated its last remaining distribution day because it has risen substantially above it. The other major indexes also have climbed well past those days of higher-volume declines, or the distribution days just got old.

The best news last week, however, was the number of stocks clearing buy points in strong volume.

In the first five days of the year, they included ArcSight (ARST), DG FastChannel (DGIT), Longtop Financial Technologies (LFT), Aegean Marine Petroleum (ANW), Harbin Electric (HRBN), Mindray Medical International (MR), Yingli Green Energy (YGE), Ulta Salon, Cosmetics & Fragrance (ULTA) and China Yuchai International (CYD).

Longtop is notable because it suffered a downgrade from Goldman Sachs the day after its breakout. That shook it for two sessions, but Longtop recovered and finished the week at a 52-week high.

Fuel logistics company Aegean Marine Petroleum had the biggest breakout. It gapped up 14% Tuesday in huge trade and rose each of the next three days.

Gold miner Jaguar Mining (JAG), which cleared a square box Thursday, had daily volume that was only about 25% faster than usual. Yet, the weekly chart shows volume was about 35% stronger.

Economic news on Friday mostly disappointed the Street. The jobless numbers for December were worse than expected.

Consumer borrowing in November dropped far more than expected. But wholesale inventories in November trounced expectations.

This post has been edited by sulifeisgreat: Jan 12 2010, 12:17 AM

Dear Traders,

Salvador Dali arrived 15 minutes late to our full house traders club meeting Saturday and that only heightened the expectations.

He did not disappoint just like the master painter who bears his namesake. He drew a picture of the current market and where to allocate our capital.

Bottom line, his forecast is to avoid shares that have made good runs such as Top Glove. Take your profits and Focus on the best of the best that have not run up- look for quality and risk no more than 5% on any situation.

Make sure you understand the fundamentals/ management and strength of the company before investing as syndicates can create a beautiful price chart and suck you in. Charts can be deceiving.

He said high volume which might trigger a technical signal could be from a single company owner and this could distort the reality of supply and demand. This is possible in thinly traded closely held shares. Again, buyer beware.

He will be speaking in February at a prominent location - the date is not yet fixed- and I would highly recommend you attend.
I will keep you posted on the date. Martin and I will also speak briefly at his event

Besides Dali, Dr Kenny Wong gave a spirited presentation about stress management. He is not just a doctor but he is a motivator as well.

Bottom line: What is the point of being a wealthy investor but not having the health to enjoy the wealth ?

He suggested to avoid fast food, pork, beef, chicken and McDonalds or KFC as these foods are laced with harmful additives, chemicals and fat.

Also eat lots of fruit, vegetables and fish, eggs OK - exercise at least 15 minutes a day- walking OK and supplement with fish oil.
Combine this with holidays and associating with like minded successful people- be part of a network.Avoid smoking and alcohol as well. He said People who belong to a network are happier and live longer and have more productive lives.

After, Dr Wong I shared a powerful quote from the great master Robert Kiyosaki:

" Gold is God's money, he created it " in the Holy books the only money mentioned is silver and gold. There is no reference to paper money which is a creation of politicians. Governments and politicians can not set the price of gold unlike paper money.

The socialist/ Marxist politician Hugo Chavez has just set the new value of his currency.Obama is also like Chavez a socialist
and Marxist.

In Venezuela Friday, Hugo Chavez decreed that the Venezuelan currency, the Bolivar-is devalued by 50 %.
Overnight, thrifty savers lost 50 % of the purchasing power of their savings.

Long lines of customers at shops are desperately trying to buy anything before stocks run out to hedge against their paper currency. I wonder what the gold price is in Venezuela today ?

Those Venezuelan's prudent enough to invest in the Man AHL Gold fund or physical gold have lost nothing and in fact have made profits.

Based on my research inflation will become a problem in 2010 as infinite amounts of paper currency has been created in all the world currencies but there is a finite amount of commodities. Exchange controls in the US could be imposed to prevent an outflow of US Dollars. If you have assets in the US I suggest you get out and bring the money back before it is too late.

Obama is depreciating the US dollar so that he can inflate his way out of debt. I think that is his hidden agenda. Our only protection is real assets including agriculture/ oil/ precious and base metals, well located income property and established dividend producing shares. and Physical/ Man gold or Am Precious metals

I am happy to answer your questions. Will be in my office at 11 AM on Tuesday. I have inflation protecting products that can fit any budget- RM 1000 to as much as you can afford.

Have a good week
Bill