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Sol Palha submits:Nothing is more common on earth than to deceive and be deceived --Johann G. Seume, 1763-1810, German theologist. The Dow continues to put in new highs but our 3 moving averages of new highs are trading well off the highs they put in last year. The 20 day moving average (current reading = 640) of new highs would have to surge past the 2500 mark to have a chance of putting in a new high. Based on this week’s readings it would have to surge 400% from its current reading. It is very strange and disturbing that a market that appears to be strong is actually not as strong as it appears to be when one examines its internal structure.Complete Story »

Sol Palha submits:You can fool all the people all the time if the advertising budget is big enough -- Ed Rollins Portugal has just had its credit rating cut and both Greece and Spain are now begging the EU to set up a bailout fund to help the beggar nations (PIIGS) who are unwilling to curb their spending habits. In our previous article, we made the following comments.Complete Story »

Sol Palha submits:At one point on Monday the Dollar was trading in the red and Gold, which should have shot up, was actually trading roughly 10 dollars lower. As the Day progressed both the Dollar and the Euro were trending upward together, while Gold continued to slide. The story below attempts to provide a reason for this phenomenon. March 8 (Bloomberg) -- Gold prices in New York fell the most in a month on speculation that Greece’s fiscal crisis will be resolved, reducing demand for the metal as a haven. French President Nicolas Sarkozy said that euro-region nations are ready to help Greece. The cost to protect against corporate-bond defaults fell to the lowest rate in seven weeks on mounting optimism that Greece will rein in its budget gaps.“If the Greek situation calms down, people may not be as interested in owning hard assets,” said Matt Zeman, a metals trader at LaSalle Futures Group in Chicago. “Gold is losing its momentum.” Gold futures for April delivery dropped $11.20, or 1 percent, to $1,124 an ounce on the New York Mercantile Exchange’s Comex unit, the biggest decline for a most-active contract since Feb. 4. The price climbed 1.5 percent last week.Complete Story »

Sol Palha submits:Companies are quietly and gradually moving their pension funds out of stocks. They want to reduce their investment risk and are buying more long-term bonds. But states and other bodies of government are seeking higher returns for their pension funds, to make up for ground lost in the last couple of years and to pay all the benefits promised to present and future retirees. Higher returns come with more risk."In effect, they’re going to Las Vegas," said Frederick E. Rowe, a Dallas investor and the former chairman of the Texas Pension Review Board, which oversees public plans in that state. "Double up to catch up." Though they generally say that their strategies are aimed at diversification and are not riskier, public pension funds are trying a wide range of investments: commodity futures, junk bonds, foreign stocks, deeply discounted mortgage-backed securities and margin investing. And some states that previously shunned hedge funds are trying them now.Complete Story »

Sol Palha submits:The wise man sees in the misfortune of others what he should avoid. ~ Marcus Aurelius; 121-80 AD, Roman Emperor, PhilosopherComplete Story »