Carpenters See Nails Everywhere
Research for Online Investors

by John Dalt

10/27/10

Everything looks like a nail to a carpenter with a hammer.  Almost every stock looks like a short candidate to me.  The market has priced in all the good news, now it seems we are just waiting on the bad news that will kick us in the stomach.

I am writing this in a hurry as I have appointments outside the office later today.  It looks like the crude oil market will get hit.  Inventories built five million barrels in the last week!  Talk about a bummer for the guys betting on $100 crude.

I went through a dozen point and finger charts this morning, looking for confirmation of my negative views.  The indices haven’t turned yet to confirm a down trend.  Here is one that caught my attention.

Those zeros look like Apple has started giving back some of the froth from over excited traders that have played the momentum.  Here is another one that hasn’t confirmed yet, but we are watching.

This chart doesn’t have the 0’s started down yet.  When they do, we think they will shoot lower quickly.  Just a couple of ideas to help you.  We have our orders entered to take advantage of the market.  Our subscribers opened another covered call trade this morning in the Buy, Sell, Hold service.

It didn’t go off at our exact price, but we did pretty well.  We will net 5.1% if it is called away in four weeks, and we have 3.5% downside protection!  You should think about this service, it is simple and lets you sleep at night.

To the mailbag:
Over the last 40 years, entitlements have become the by-word for all segments of our economy.  Whoever gets cut will complain.  My suggestion - reduce all entitlements by 10%.  This will hit my pocket also; however, who can complain if all entitlements are treated equally?---paid up subscriber R.A.

John’s reply:  Your idea is probably the least controversial way.  I here talk of means testing SS and Medicare.  SS just becomes another welfare program.

The information presented in this newsletter is based on generally available news releases, corporate filings, current events, interviews and the editor’s opinions.  It may contain errors and you should not make investment decisions based solely on what you believe you have read here.  Do your own research, it is your money.  If you lose it, it is your responsibility, not ours or your grandmothers!  The editor may or may not have a position in any securities discussed.  The editor may have held a position in a security earlier, or in the future.

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