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What Happened In The Stock Market Nov. 7th-11th

Stock Market Report Period November 7-11, 2011
Over the last few weeks the stock market has been having quite a roller coaster ride. Activities have been pinned pretty much on the economic and political uncertainty in Europe. The situation in Greece and Italy has had a major impact on investing habits across the globe. Despite the ups and down during the past week, the stock market ended on a rise on Friday.

US Stock Market Activities for the Period
Friday saw the NY Stock Exchange having some positive gains with a few exceptions. The three main indicators, Dow Jones Industrial Average, Nasdaq and Standard & Poor (S&P) moved up by minute fractions, but any increase is a good sign no matter so small. The gains, according to CNN Money and the New York Times at close of business on Friday, November 11 were as follows:
1. Dow Jones Industrial Average (DJIA) closed the day at 11,893.86 points moving up by 112 points or a mere one percent.
2. Nasdaq Composite Index didn’t fare much better inching up by .1 percent to close at 2, 625,15.
3. Standard & Poor 500 (S&P 500) ended the day with 1,239.70 points, a 0.9 percent increase.
Only two of the companies that make up the 30 components in the Dow Jones ended the week with a negative movement, namely Bank of America and American Express Company.

Commodities Market and the European Debt Crisis
As can be expected, the debt crisis in Europe is affecting other key areas of economic markers worldwide. As the crisis seems to be on the verge of settling down, crude oil prices have started to inch upwards. The New York Mercantile Exchange shows crude oil prices closing the day (11/11/11) at $98.99 per barrel, an increase of $1.21. This increase may continue if the overall outlook for economic growth begins to improve globally.
On the US front, soybeans prices rose and corn prices fell. The increase in soybeans resulted from lower than expected production resulting from adverse conditions such as drought. According to the U.S. Department of Agriculture, only 82.9 metric tons of soybeans will be produced; which represents roughly 8.5 percent lower than expected production figures for the period.
Livestock farmers move towards using wheat as feed has negatively impacted the price of corn. Corn prices fell to $6.39 per bushel on the Chicago Board of Trade (CBOT) as corn futures fell 1.1 percent for December delivery according Bloomberg News.

Job Market Report Shows Slight Improvement
Reports reveal that there were fewer requests for unemployment benefits during the week under review. The Labor Department statistics for the week of October 29 showed claims for the period fell from 406,000 the week prior to 397,000 during the first week of November. This small change may be an indication that the job market maybe be improving, albeit slowly. This has been the lowest figures for unemployment claims for over a month.
While not meeting the 95,000 new non-agricultural jobs predicted by economists polled by Reuters, there was an increase of 80,000 jobs during October. Most of the new jobs were in the education, health, leisure and hospitality sectors. This increase has not done much to improve unemployment rates, which have inched down by one percent to close at 9 percent over September. Another factor to keep in mind is that the government sector is cutting jobs while the private sector is making modest employment gains.
All eyes will be on the market when it opens on Monday, November 14, to see whether the yo-yoing status will continue or whether there will be more positive gains. Most players in the market will be keyed into the activities on the Italian front as three billion Euro five-year bonds will be auctioned.

© 2011 Beating The Stock Market

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U.S. Stock Market Report Period October 3-7, 2011

The last three months have been quite a ride where the international stock market is concerned. Interestingly, the first week of October ended on an optimistic note with stocks trending upwards. This increasing confidence by investors was no doubt caused by strong belief that European banks will be recapitalized.
Stock Market Activities – First Week of October
Most tech stocks showed an increase in the past week with the exception of Apple. The 0.023 percent decline saw Apple’s share closing at $377.37 after losing 88 cents in response to the death of founder, Steve Jobs. Gains of between 1.74 percent and 4.99 percent were recorded by top tech companies during the period. These included Google – 1.98 percent; Microsoft – 1.74 percent; Oracle – 1.90 percent and Nvidia Corporation – 3.97 percent and Hewlett-Packard (HP) – 4.99 percent.
The three main indicators, Dow Jones, Nasdaq and S&P all showed gains as follows:
1. Dow Jones Industrial Averages moved to 11,123.33 after gaining 183.38 points
2. Nasdaq moved to 2,506.82 points after gaining 46.31 points, and
3. Standard & Poor (S&P) moved up to 1,164.97 after a gain of 20.94

Job Reports for US Companies for October 1-7, 2011
All eyes continue to be on figures dealing with the unemployment rates. The number of new job created is a strong indicator of economic activity and potential growth. Projections for new jobs in September were 75, 000 but initial reports at the end of the month showed a decent increase in non-farm payroll workers of 103,000. Included in this number, however, are 45,000 telecommunication workers from Verizon who were on strike for two weeks. Despite this addition of jobs by US-based companies, the number of unemployed making claims increased by 6000 between the last week of September and the first week of October. The new jobless claim figure now stands at 401,000 which is still slightly below the projected figures of 410,000. The unemployment rate for the past three months remains at 9.1 percent.
European Debt Crisis Containment
The debt crisis in Europe is causing more than simple ripples in the stock and commodities markets. The European Central Bank is depending on two main strategies to keep the region from buckling under the current debt crisis. One is keeping interest rates at the current level despite the fact that this move may cause a slowdown in economic activity. On Thursday the European Central bank also opened an emergency loan facility for banks to help tide them over during the existing crisis. These loans will run from 12 to 13 months and will be unlimited to help banks avoid the issue of limited liquidity.
In an effort to bolster the UK economy, the Bank of England has already put a substantial US$423 billion (£275 billion) into the economy. Japan is also planning to pump lots of money into their economy if the European debt crisis explodes and starts derailing the global economy.
Commodities Market Responds Positively to European Banking News
With hopes high after the European Commission asked European banks to recapitalize and the expectation that they will do so, the commodities market is showing growth. One commodity in which this growth is evident is coffee beans. Reports online indicate that consumers may have to pay more for that caffeine buzz as prices start to show a positive upward trend after a period of negative growth. Oil prices have also responded positively to the US job report and the news out of Europe. West Texas Intermediate or light sweet crude is showing an increase for November from $80.65 to $82.82 based on information from the New York Mercantile Exchange.
When the market opens next week no one knows what will happen, but all eyes will once again be on activities in Europe. A worsening debt crisis there will negatively impact the financial sector in the USA and across the globe.

© 2011 Beating The Stock Market

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Wall Street Loses All Of It’s Gains For 2011

What a ride it’s been on Wall Street this week. Traders and investors alike pulled out a lot of money from the stock markets on the lack of confidence in the government. With all the hype about raising the debt ceiling to save the country from defaulting, Wall Street still feels that the United States is not out of the woods yet. As it is, concerns about the credit rating agencies Standard and Poors, Fitch and Moody’s may downgrade the U.S. on the grounds of having too much debt as it is.

The DOW, S&P 500 and the NASDAQ are down after the week of doubt did it’s thing. All three of the indexes are down 10% from their recent highs and any gains they had for the year 2011 is all but erased. Equities are not the place you want to be in when the economy is in turmoil, the dollar is losing it’s worth on a daily basis and the Federal Reserve is thinking about QE3 and printing more money.

For those of you that have been following me for some time (and for those who are new, can read past articles) know that I’ve been calling for this to happen since before the New Year. I have no confidence in the markets or in our government. Since the beginning of 2011, I’ve been buying commodities such as gold and silver. No matter what the federal Reserve does about printing money, it can’t create more gold and silver than what is in the world. For that reason alone, I’ve been buying what I can for some time now.

Here’s a video that was posted today by GoldMoneyNews. The video is how silver is now expected (by analysts) to be the big mover in the near future. Typically gold trades at 16 times the price of silver. With that in mind, then silver should be trading at $100 per oz instead of it’s current price of $38 per oz.

So don’t expect good things from the markets in the near future. Our economy is still in shambles, jobs are not coming back quick enough and it’s not just in America that this is going on. Buy precious metals now and hedge yourself from the mayhem that may ensue.
Check out our affiliate sponsor StraightSilver to get the best price for your investment.

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Fears Over The Economy Hit Wall Street

I’ve been saying for some time that the strength on Wall Street is only temporary. With the political game that Washington has been playing, our economy has not yet started to recover or in some cases, hold on to their current levels. The debt ceiling has been an issue for months and in the eleventh hour Congress finally gets their act together to pass an extension. What’s good about an extension for the long term? Nothing.

Standard & Poors along with Fitch and Moody’s are concerned about the true condition of America’s deficit and the ability to function within a budget. It’s been over 800 days since Congress has passed a budget and that’s because they’ve been spending money and if they had a budget in place, they wouldn’t be able to do as they’re doing for the last few years.

As you can see on Wall Street, investors are moving their money out of equities and moving them to saver havens like bonds, precious metals and in some cases, overseas. The DOW lost 266 points earlier this week and claimed back only 30 point the next day. As of this morning at 10:45am, the DOW is down another 208 points and who knows where it’s going to close at the bell. Since Monday morning the DOW has lost nearly 5%.

As for the NASDAQ, it too has taken a hit during this week thanks to the uncertainty of the actions going on in the Beltway. NASDAQ is down (so far) this week over 5% along with the S&P 500 dropping 6% during the same period. A sign of things to come in the near (and possibly long term) future.

Do what they smart money has been doing for quite some time and that is buying gold, silver and other precious metals. Gold has gained 10% since June and 4% in just the last few days. How can you sit by and watch as others, who have a better idea of the markets, as they move assets to other sectors to hedge against the inevitable pullback on Wall Street? I suggest you really look at your portfolio to see how diversified you are and make the appropriate moves to balance it. Remember to not put more than 20% into any one sector or individual stock. Doing so may cause you to lose more than you would have if you diversified.

As for me, I’ve moved out of most of my positions in equities. I’ve been building up positions in the commodity sector, mainly gold and silver, to get ahead of the currency issue plaguing our country as well as the world. You might want to do the same.

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Precious Metal Prices Dip

The DOW didn’t start the week with a bang, but it picked up speed as the day went on. The DOW finished up today 109 points from it’s Friday close. Late in the day it was up over 150 points. The S&P 500 finished up 11 points which means the two indices are up today by nine tenths of a percent. The best of the big indices is the NASDAQ, finishing up 35 point (1.33%). The rally in the markets today was due to Europe’s announcement of optimistic look on Greece’s debt. Even though the gain was welcomed by many on Wall Street, the strength of the markets may only be temporary. Yes the dollar has gained strength, but lost some steam with the dollar index closing at $75.33 today. The Euro gained 0.6% against the dollar. If the Federal Reserve keeps printing money, it will lose even more of what it recently gained.

In the commodity sector, precious metal prices fall. Gold dips below the $1500 level, settling at $1496.40 per oz. and the price of silver also slipped back a bit to close at $33.59. It seems that many countries are lowering their concerns about inflation. The Chinese Premier Wen said the country’s inflation would be below 5%. With views like that, many see the haven of precious metal not being as needed or attractive as it is during poor economic times. At the current levels of gold and silver, they are both at their resistance levels. The 200 day moving average for gold is at $1415, which can signal a more downward slide in the commodity. So this is a good time to watch to see if the support level will hold. Analysts feel that this will all depend on what happens in Greece. Greece needs to prove that they are serious about their debt and how they get it in order. It’s the only way they will be able to receive any more bailouts from the IMF. If the latest measure fails and Greece can not get any more funds, then gold will continue to rise as more Europeans seek out to purchase more of the precious metal. If it goes the other way, where Greece does get the bailout, then stock markets around the globe should see a rise in trading.

Either way you look at it, precious metals, over the long haul will increase in value. I’ve been building a portfolio which holds 35% in precious metals. I do plan to scale out of it, but my opinion is that we’re not done with the economic woes. Politics have a lot to do with the news we’re hearing and I don’t have too much confidence in any government.

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Commodities: A Gift To My Children

If you’ve been reading this blog for any length of time, you know that I’m expecting to see the stock market take another plunge. So where are we to invest? Commodities, that’s where. Commodities like gold, silver other precious metals, oil, natural gas corn and sugar can not be printed in a few minutes or hours. It can not be manipulated as easily as any government currency. The Federal Reserve is printing money like they’re Kinko’s or something.

I’ve been building up a nest egg of commodities for sometime. It’s not something I’m doing because of the current situation of the U.S. economy (actually I’m am buying more than I’ve done in the past), I’m doing it for my children. My daughters are teenagers and soon enough they’ll be on their own looking to make it in this world. who knows what the world currency is going to look like in just a few short years. If the United States doesn’t do something now to solidify their financial sovereignty, who knows how things will be. Right now oil is traded in U.S. dollars and China and the United Emirates are discussing reducing their holdings in U.S. dollars and not using the dollar has a the way to trade oil.

So what should you be buying? Gold and silver are the best things at this moment that average investors could and should be investing in. Gold is trading this morning at $1,518 an ounce and silver is trading at $34.74 an ounce. I know you’ve heard the advertisments, seen the ads and listened to the stock news programs stating that we should be buying gold and silver. So have you been buying gold and silver? If you haven’t, remove your head from your butt and do so. Yes gold was trading at less than $1200 on ounce last year and silver was going for about $12 an ounce, but they’re going to be much higher next year so don’t waste time.

There’s a new book out from a man who retired at the age of 37 after making his money the old fashion way…he earned it. Jim Rogers worked as a young kid and a teenager, to investing his money in the markets. His new book, ‘A Gift to My Children A Father’s Lessons for Life and Investing’ helps us prepare our children for the trouble times that are coming in the near and the distant future. Jim discusses the troubled times ahead for the U.S. dollar, he actually believes it’s “doomed”. The book is a great source for teaching our children about investing and other life lessons they’ll need to survive in this world.

Click the book to view or purchase.





I’ve been showing my girls how to trade stocks, look into real estate investments and investing in precious metals. This book helps to bring the message home about how important it is for parents to teach their children how to prepare for the future. I feel that too many of the younger generation is not aware of how to be financially savvy. Especially since the public school system doesn’t have time to teach the students how to balance a checkbook, nevermind invest in themselves.

So pick up Jim Rogers’ book ‘A Gift to My Children A Father’s Lessons for Life and Investing’ at Amazon or any bookstore. You won’t be disappointed.

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March Madness On Wall Street

Over the past two years the DOW has gained 95% since it hit it’s bottom of 6,547. Overall the markets as well as the outlook on the economy has improved greatly, but have we really stabilized the decay which was known as the housing market crash?

In the last month the DOW gained 1% and nearly 5% since the new year. Unfortunately I feel we’ve haven’t really solved any of the problems in our economy or in Washington. Congress is out claiming to cut the deficit and balance the budget. If the government was a corporation that was traded on the stock exchange, I wouldn’t even think of investing in it. Before I invest into a company, I look at their statements, earnings report, listen to their conference calls. I dissect the entire company’s financial so I know what I’m buying into. The U.S. government is running in the red and has pretty much tapped out on any more borrowing. Soon Moody’s is going to lower the country’s rating.

In the meantime Wall Street is going on like the world is financially sound and everything is going to be OK. Even though the unemployment rate has dropped to 8.9%, it doesn’t mean that more people are back at work. What it means is the the people who were collecting unemployment over the past 26+ weeks (in many cases, 99 weeks) are no longer on the register since they’ve exhausted all their benefits.

Look what’s happening in the United States over the past two weeks. Oil is now at $104 per barrel and the average price of gas has gone up over $0.30+ per gallon. At the time of this writing, the average price per gallon is $3.47. With the price of gas rising, in turn the price of food, services as well as any other product has also gone up.
Look at the price of gold today. At the moment the price of gold is $1428.00 per oz. Which also makes me think about how weak the American dollar has become over the same time period.

Well since March is here, let’s see if it comes in like a lion and leaves like a lamb. I believe that this month is going to be one to remember and I don’t mean that because of good things coming down the pike. If you’re one of the ones who think that this trouble is all behind us, well then go ahead and buy all the stocks your can, but if one of the many who are thinking like me, then you should be buying gold and trade some foreign currency since our dollar is weakening as we speak.
Either way…Happy trading.

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The DOW Closes Above 12,000

With the DOW climbing 148 points today and closing at 12,040, many are wondering if it can sustain this level. The DOW hasn’t closed above the 12,00 level since June 2008. It’s been a long two and a half years to get back to this level, but are we out of the woods yet?

I’m no expert, but I will say that any average Joe can see that the economy has not recovered no matter what the “reports” say. I travel a lot and where ever I go, I see many establishments that closed in 2008 and to this day most of them are still vacant. I know in the county I live in, the unemployment rate is nearly 14% and the state’s level is “projected” at 10.1%. I say “projected” because who are they trying to fool with that report? How many people are no longer collecting benefits and are still unemployed? They’re no longer being counted which according to realistic estimates, puts the national rate some around 18%-19.5%.

What about the housing market? The average home prices are starting to stabilize, but no one is ready to get out there and start buying property again. A report was released this week showing that over 11% of the homes in America unoccupied and more people are looking to rent than to own.

One thing we can see from over the last two and a half years is which companies were strong enough to weather-out the storm. I’ve been able to see some small cap companies grow in value at a steady pace with expected pull-back from the profit takers, only to continue the climb up. There are others that I’ve recently discovered that look to be contenders in a couple of years.

For the last few months I’ve been sitting on the sidelines watching the market. I’m not confident with the markets, the economy or the government at this time. Yes I have missed some good gains in stocks that I was invested in, but I sleep better just sitting it out right now. I love the stock markets and will always be involved with it, so for now I’ve been looking at some short/long term (2-4years) small caps that I will be investing in soon enough. I’m just waiting for a healthy pull-back (6%-9%) at then I’ll make my trades.

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Investments

I’ve been looking at the different industries and investment vehicles that are out there for the average investors. Depending on which types of investments out there, it may or may not be the time to invest. How can one know if an investment is right? Taking your time and doing the research to find out if it will be a profitable one or not. The housing market, the stock market or any other investment you have to choose from can be profitable, but unless you look at the real numbers and study everything there is to know about the investment prior to putting your money into it, you can lose most (if not all) of your capitol.

Yes housing prices are way down from their peak in 2006-2007, but that doesn’t mean that all housing prices are right for the picking. You need to look at the condition as well as the area the house is in. In some part of the country, housing prices may never reach the prices of just a few years ago.

What about the stock market? I don’t trust the stock market at this time since there is no reason for the DOW to be at where it is at the moment. Every month poor reports are being released (consumer confidence, unemployment and retail sales) and the stock market seem to either gains or holds it’s ground. We are in a terrible economic time and to think that the stock market will continue to hold is risky. The economic current events look pretty scary. If you’re looking to invest in the stock market, make sure you do your research into the company before you buy any shares. It’s the only way to know what stocks to buy now.

In my opinion, gold is the answer right now. I don’t mean stocks that trade off of stocks, I’m referring to actual gold. Gold as always retained it’s value or has gone up during trouble times like these. So when you invest, invest wisely.

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Is Now The Time To Invest?

During the last two years (2008-2010) we’ve seen the stock market as well as the housing market and financial institutions go through a very rough period of correction. Now in the second half of 2010, average investors are wondering if they should start investing again. Well it depends on what you’re going to invest in.

We are no where at there bottom or the worse of it yet, but at the same time I’m looking at many different investments I may want to get in on. I will say though that the stock market is not one of them at this time. In my opinion, there is no reason for the DOW to be over 10,000 and I do expect it to come back down below 9000. When I do not know, but it will be there in due time.

What about precious metals? There is only a limited amount of gold in this world and it’s one of the few things that will retain it’s value (if not go up) in our present economic condition. I’ve been building a portfolio of just different precious metals. If you’re looking to buy gold make sure you are buying actual gold pieces and not some paper stock that trades off of gold. Between the two, only actual gold will be worth anything when and if our economy crashes.

As for the housing industry, I suggest you take your time and look for solid and profitable deals. The housing market will not turn around any time soon so you will have plenty of time to find the right one for you. We will see foreclosures going on for years to come so prices will stay in the general area if not come down even more. As an investor, you will need to look at properties that will return to good value in five to eight years from now. The days of flipping houses are on hold and will be that way for some time.

Stay away from investing in any financial institution since they are still not sure of what will happen in time with all the government regulations that will be coming down the line. So is it time to start investing? Yes if you take your time and study what it is you want to invest in.

What happened to the stock market today?

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