Wall Street Cyber Terror Attack?

In all my years in this business, never have I witnessed what took place last week and it begs the question, What really happened?

Were we attacked through the various electronic exchanges that exist today?

Since we still haven't received any answers and given the fact we have been attacked lately in a traditional terrorist sense, this has to be considered since it is unlikely that true sellers were panicking out of their positions to cause a 1000 point selloff in 5 minutes only to change their minds in a flash and bring the indexes back up just as fast.
I also have to be skeptical about the dismissal this week by homeland security officials about this possibility.

I mean if it were true, do you really think they would admit this? If they did, what would happen to the markets if people thought their investments could possibly get wiped out by an enemy combatant.

All the signs are there in terms of the label "targeted attack".
For example, 2 stocks with the biggest index weighting of the Dow Jones were taken down to have the most impact on the index value. Also, Accenture, a company engaged in IT consulting and security systems for the financial markets in particular was taken down to a price of $0.

This is a scary thought, I admit but former security officials like Richard Clark have been warning of this for the last several years and since I have never seen selloffs of this magnitude in such a short time frame without explanation, then we must consider the future possibilities that an all electronic trading system without the benefit of the former specialist trading curbs and a reinstatement of the uptick rule for shorting will raise the likelihood that it will happen again.

As a result of the event, several thousand trades were cancelled by the exchanges and there are no disclosures of whose trades were cancelled, why those particular trades were cancelled, and finally which I think is the most important question, Is who made the most off this event as well as who got wiped out.

All this tells me that the public is not getting the truth because these things can be traced in terms of actual trading executions unless these records were also erased or covered up.

So be careful how you proceed until there are actual answers.

Timing of the January Effect

History has taught us that the first week of January many times can give us an indication of how the market will perform for the year. This is known as the January Effect

There are many schools of thought behind this investment theory but probably the main engine for this type of forecasting logic, is that fund managers and investors take new positions after clearing out other positions at the end of the prior year for tax loss and performance reporting purposes.

For purposes of this post, we will take a look at a daily chart of the ETF, (DIA), which tracks the performance of the Dow Jones Industrial Average. The basic indicators shown are the 50 and 200 Day Moving Averages, along with a linear regression channel set at 1 and 2 standard deviations, and finally a trend line drawn from the November low. The reason for looking at the ETF is that we can get a better sense of volume levels as displayed along the bottom.

As displayed in the chart, we can see the Dow is at a major resistance level as marked at 90.82, Representing the December high and January 1st, yesterday’s action. This resistance is also marked by the upper band of the one standard deviation linear regression channel.

Another healthy sign is that the Dow broke through the 50 Day Moving Average from the November low and this is a level we have not seen for the last several months.

We are at key 30 day resistance level and today’s market action at one point gave up half the prior day’s gains. Certainly if we can take out that level in the next three days, than the January effect theory would be forecasting a healthy 2009 for investors.

What I believe makes this year different for this January barometer from a timing perspective, is the massacre selloff we experienced in the last few months as well as the realization this bear market has lasted almost 14 months which is a little more than the average time for bear markets but certainly a better opportunity to invest for a higher market later this year .

I see this market rising over the next few weeks as weaker earnings seem to have already been priced in the market and the new administration takes office giving us a clearer picture of the plan to get our economy moving again.

For a better Video Presentation of this post please visit

www.traderxtreme.com

Past performance is no guarantee of future results.

CNBC Portfolio Challenge First Day Rankings

Following the first day of trading results, the top player rankings for the 2008 CNBC Million Portfolio Challenge were first posted early Teusday evening.

Before I start bragging about my first day success, let me make a some observations that players should consider in the early going.

First the top player, had a first day gain of 15.5%. Assuming he had the total bonus points of $17,000.00, then his gain for the day was around 13.8%.

The numbers below assume full credit of bonus points:

The player ranked number six assuming full bonus credits, has a gain of 10.7%.

The player ranked number ten has a gain of 10.2%.

The player ranked number twenty five has a gain of 9.4%.

Now my first day success was a total return of 7.4% giving a rank of number 784 and a very comfortable positioning for the first day of trading.






Now with only 700 people ahead of me and no doubt half of them with similar portfolios in that list, cutting it down to maybe half of those, I could vault into the top rankings any day now assuming I stay positive and no mistakes.

At least its fun to have a shot at the first weeks prize just so long as its the Yankees that I will see at the World Series.

But I can have much more fun with the grand prize money.

We will see.

Comverse Technology - Takeover on the horizon? "The Greatest Stock Story Never Told"

In my early days as a stockbroker, I worked for a small investment banking firm who participated in underwriting small speculative growth companies that mainly traded as pink sheet stocks. Nine out of ten companies in this arena never make it, but i was fortunate enough to embrace one that was my greatest lesson in what can happen if you buy a stock for the long term.

I also learned what can happen if you don't stay with your beliefs and bail on a stock too early resulting in years of kicking myself and muttering of what I should have, could have, would have done.

The company I am referring to is my first stock pick from 1989, Comverse Technology (CMVT -OTC).

This company's storyline sounds like the trailer for the movie Gladiator where Commodus says to Maximus,

"The general who became a slave. The slave who became a gladiator. The gladiator who defied an emperor. Striking story!"

Comverse's storyline goes like this,
"The company who began as a penny stock. The penny stock that graduated to a Nasdaq listing. The Nasdaq stock who became an SP-500 component. The SP-500 component that fell from grace back to the pink sheets. Striking story!"

Unless you were a shareholder these last few years.

Even more intriguing was last year's worldwide manhunt for Kobi Alexander, Comverse's CEO for many years, who stepped down last year as a result of an improper options back dating probe that began and is still ongoing. Mr. Alexander made a lot of money for shareholders but apparently "greed" took over and he made a fortune by backdating options at low prices illegally. This was so unnecessary since he was doing what we as average investors expect a chief executive to do and that is increase shareholder value. For this he should be remembered as the model for success building a company from obscurity to an institutional darling, but for some reason he chose the path to riches by cheating rather than staying the course and continuing to build a telecom technology powerhouse.

I was buying this stock for clients at $.18c per share in the latter part of 1989. Yes, I was recommending a speculative penny stock in my early days while building a client base. Why? Because the company at the time represented what every investor looks for when they research a company before investing in it. The company was on the technological forefront developing telecommunication systems that provided messaging services and voicemail solutions. They were signing up customers left and right and these customers were major telephone giants throughout the world. Their telecom systems were purchased by governments. The company was building a foundation for remarkable growth. Growth that took this stock from $.18c a share to north of $100 per share over a 10 year time frame.

Unfortunately, I went from the penny stock firm to Lehman Brothers and began buying stocks that were more mainstream and were household names for the average investor. I stopped buying Comverse, and in fact sold what I had for clients in early 1991 and what a mistake that was. If I had held the shares for my first few clients in the early days, I would have been a multi millionaire by now with probably the greatest stock story anybody could tell. But I bailed early and watched the company woo Wall St. and begin it's meteoric ride to SP-500 status. What a lesson, the $100 million dollar lesson considering how much stock I had for clients ($10,000 turned into $8 million in about 10 years and I had about $100,000 worth of the stock total for clients). But a lesson I hope all my readers will learn about long term investing.

Today the stock trades on the pink sheets at around $16 per share and Wall St. is buzzing about a possible breakup of the company's divisions which analysts say is the best strategy that will represent good value to investors. There were even rumors of a takeover from Oracle that surfaced in September. Just in the last few months the company has announced several new telecom contracts and new product announcements that revived my memories of this active pace of new client deals 20 years ago. They still to this day provide major carriers like AT&T, Verizon and Sprint with their messaging technologies and continue to be a leader in this area supplying companies in as much as 130 different countries. Even the new Apple IPhone success has implications for Comverse.

This is not a typical Pink Sheet penny stock fundamentally with $1.43 Billion of cash on the balance sheet ($11.50 per share) and revenues north of $1 Billion. Institutions still own almost 20% and there are price targets by some analysts in the mid-twenties. So buying the stock at $16 seems like a good bargain just as it was 20 years ago at $18c.

Investors should be aware that the company still has delayed their audited financials which has been the main cause of the Nasdaq delisting, but I am anticipating they may be coming out of this two year scandal by early next year and new organizational changes will probably accelerate this process. Any potential takeover players may be waiting for these events to come to closure and the bad boys of the stock option scandal are now separated from the company. Earlier this year Comverse Technology also named a new chief executive. Former AT&T Wireless executive Andre Dahan who agreed to take the CEO job on April 30.

Whatever the end result will be, I am going to make a bold prediction that the company will be bought out next year and buying the stock at these levels could reward investors handsomely. I never made a buyout prediction before so it seems even more appropriate to make one on the greatest stock story in my investment history. I have high hopes that the company can put the past behind and move forward at doing what they do best, providing integrated software, systems, and related services for multimedia communication and information processing applications.

Could this be the beginning of a new era for Comverse? Time will tell, but considering my history with the company, I am going to give them the benefit of the doubt. Certainly, playing the stock on the market's recent weakness and a possible year end tech rally makes timing this stock now a prudent strategy.

I do not own the stock as of this post but will be adding it on the next down day for the stock market. I dont own a multi-million dollar voice messaging system.

Is it time to make money at the expense of the "War Profiteers"?

As the calls for ending the war become louder, I can't help but think what the consequences could be for some of America's largest Defense contractors. As much as I don't want to see any potential cutbacks in Defense spending put our troops at a disadvantage, it seems abundantly clear some big cutbacks are on the horizon and the indexes that track this sector are sure to go lower.

I was disturbed reading today about hints of these cutbacks to come so I pulled up a couple ETFs that track the sector and couldn't help but notice performance that has outpaced the general market averages by almost two fold. The first was the PowerShares Aerospace & Defense (PPA -AMEX ) which tracks the index called the SPADE(TM) Defense index. This ETF is trading just north of $22 with a performance year to date of 27.93% and one year total of 39.41%.

The second is the iShares Dow Jones US Aerospace & Defense (ITA -NYSE) which tracks the Dow Jones U.S. Select Aerospace & Defense index. This fund's trading performance is a little better rising 30.62% year to date with a one year total return of 43.16%. This fund has a large weighting of almost 10% of one of my favorite stocks United Technologies (UTX-NYSE), but I believe this component's performance will not be enough to support this index's value.

Some components of this group have been characterized as evil "War Profiteers" and some have been exposed with amazing clarity how exactly they benefited from today's sabre rattling and war-time policies. There exists well documented scrutiny of the group as well as complete disclosure of key figures close to the Bush administration and their involvement in the War profiteering crew. Personally, I don't believe everything the Bush bashers have to say, but I am not naive either.

Whether you view these companies that make up the defense and related services as providing necessary evils, or if profiting from these entities is not appropriate for your own money because of the inherent evils that their products and services support, there can be just as much responsibility and satisfaction in profiting from a slowdown in their business which could mean a slowdown in those same evils. Either way, I can't make the case for the bullishness that existed here a couple of years ago considering today's popular anti-war climate.

From a technical perspective these two funds look overdue for a correction as evidenced by their short lived, long term charts in the last couple of years. The Ishares fund looks like a better short based on the recent market correction, but the Spade Index fund looks just as appealing and has a more concentrated focus of defense companies that are more likely to be impacted by defense cutbacks than aerospace companies that are more represented in the Ishares fund.

I would short both of them here for a longer term play to under perform the general markets in next year's pre-election anti-war rants.

I do not have a short position at the time of this post but will be looking to add positions on any near term rallies.

I do not own an airplane, missile or bomb.

Sun Microsystems Inc, a cheap tech stock who lives up to its name with ambitious eco-initiatives

Sun Microsystems, Inc. (JAVA), whose stock price has been beaten down in recent years, may have found some answers to turn the tide. The company has recently been concentrating on taking the lead in many eco-friendly initiatives related to IT infrastructure and have themselves shown dramatic reductions in their own energy use.

The company provides network computing infrastructure product and service solutions worldwide which are used in many industries including, technical/scientific, business, engineering, telecommunications, financial services, manufacturing, retail, government, life sciences, media and entertainment, transportation, energy/utilities, and healthcare.

Recent developments include a new state of the art data center, new energy efficient server products, and a newly formed organization dedicated to environmental conscientiousness. Such initiatives recently earned them a $1 million incentive payment from local utility Silicon Valley Power. Wall Street is starting to take notice of how their green strategy can give them the edge on their competition

The stock traded as high as the mid-60s seven years ago and considering their new products and plans to offer solutions to help solve the problem of IT energy demands, I love the idea of buying it here under $6.00 per share.

I do not own the stock as of this post but considering Tech's history of 4th quarter performance, I will take a position once the market settles down from its recent volatility.

Likelihood for a Summer rally fading on Wall Street

Market players head into this trading week shortened by the holiday, but face a heightened sense of awareness that the story for stocks is about as unsatisfying as a season ending Sopranos episode.

While it is situations like this that investors look for, to grab stocks when out of favor and at lower prices, it is very important to stay overly cautious and wait for prices to stabilize before initiating new positions. At this moment, the trend is certainly downward and low participation this week will not help the cause for bulls.

The Federal Reserve board last week also helped to feed the bears by leaving interest rates unchanged and issuing a statement of their inflation concerns that was about as informative as my weekly trips to the local grocery store to buy milk at $3.80 a gallon. Of course of little highlight by Bernanke and his crew is the continued housing slump and self-imposed sub-prime mortgage mess that this illustrious group created when they raised rates in the first place that killed credit-challenged home buyers in the last few years.

Since I wrote the call to add positions to short the major market averages 10 days ago, the Dow Jones Industrials has dropped roughly 250 points or almost 2% with the SP500 following suit down about 30 points. Oil prices have revisted the $70 per barrel mark, interest rates have crept even higher as evidenced by treasury yields, and downward earnings revisions for stocks have outpaced higher estimates.

So what should you do with all these negative factors?

As a day trader, I am able to take advantage of the down days just as much as i am able to benefit from the up days. My short term trading ussually revolves around volatile stocks, indexes and ETFs. However my long term investing strategies see great situations in areas that have been bucking the downtrend and I see some great opportunities this summer to buy stocks as they are falling.

The industries and stocks I like right now are agricultural products(MON), utilities(UTH), envronmental services(WMI), oil services(OIH), financial services(NYX), and some select technology plays (CSCO,AAPL,YHOO).

Since I am overall bearish in the near term and looking to hedge any long positions in my portfolio, I like the ETFs that short the major market averages(DXD,SDS,QID).

Investors hoping for a Summer rally after the holiday week when earnings season kicks off are likely to be disappointed. They are better off to wait and see what the results look like this quarter to better guage when the market will react and head to new highs. This trader doesn't see it happening till the end of the year.

Performance table of highlighted posts:

Post Date Post Item Post Price* Current Price** Return Pct.*** Time Period****
07/02/07 YHOO NA $27.13 NA NA
07/02/07 AAPL NA $122.04 NA NA
07/02/07 CSCO NA $27.85 NA NA
07/02/07 NYX NA $73.62 NA NA
06/22/07 BX ($35.98) ($29.27) 18.6% 1 Week
06/20/07 QID $45.50 $45.69 0.4% 2 Weeks
06/20/07 SDS $51.01 $52.72 3.4% 2 Weeks
06/20/07 DXD $48.82 $50.15 2.7% 2 Weeks
Combined OIH October Strangle 2.0% 3 Weeks
06/08/07 OIHVK $6.20 $3.80
06/08/07 ODLJO $8.80 $11.50
Combined OIH July Strangle 13.6% 3 Weeks
06/08/07 OIHSM $5.20 $1.10
06/08/07 OIHGL $11.00 $17.30
06/08/07 OIH $167.03 $174.73 4.6% 3 Weeks
06/06/07 FIW $21.18 $21.73 2.6% 3 Weeks
06/06/07 PHO $20.35 $20.92 2.8% 3 Weeks
06/06/07 CGW $25.68 $25.57 -0.4% 3 Weeks
05/30/07 WMI $39.27 $39.07 -0.5% 4 Weeks
04/13/07 UTH $144.21 $141.65 -1.8% 11 Weeks
04/05/07 MON $58.30 $67.58 15.9% 12 Weeks



--------------------------------------------------------------------------------
* Post Price is the price as quoted in post or the highest price on the day of post/long positions or the lowest price on the day of post/short positions. () indicates short position.
** Current prices based on the close of trading June 29th, 2007

*** Return percentages do not include dividends, fees or commissions.

**** Time period is the time since the original post, rounded off to the nearest weekly period.

The Russell Index Trade

Market players will be busy today trading the stocks that will be added or deleted from the Russell Indexes. This event happens annually and investors who wish to take advantage should focus on buying the companies that are being added and shorting the stocks that are due to be deleted.



Exchange traded funds and mutual funds that track the indexes must rebalance their portfolios to match these additions and deletions so this one of the few market events that you can predict with reasonable certainty which stocks will have above average buying or selling. For a complete list of which stocks, refer to these links. (Additions, Deletions) For a complete description of the process refer to this link (Russell 3000 reconstitution).



In the past traders have taken advantage of the buy or sell imbalances near the close of the trading day that the rebalancing takes place, which takes place later today. This year will see about 277 changes to the index so there is no shortage of ideas for investors looking for new positions. Also, investors need to recognize the fact that the changes are made because the newer stocks that are added are considered to be better representations of their industry groups while the stocks that are deleted are no longer in favor as industry group representatives.



This link examines what happened in 2002 when the S&P 500 changed 9 components in it's index and the performance of those stocks around the rebalancing date. (SP500 rebalance).



Investors who are new to the game should proceed cautiously with regards to this market strategy unless they have the tools to see exactly which stocks are experiencing imbalances prior to close of the trading day. However, if an investor has a longer term objective, this event can help confirm any decisions of whether to buy, hold or sell the stocks involved.



Finally, while I was surfing the net to get information for this post, I came across David Neubert's post from 2006 in regards to this trade. (David's post)

Water: Essential to Life & Your Portfolio

Media headlines concerning climate change and the declining supplies of the world’s clean water have spawned an investment euphoria into water companies, utilities and the mutual funds that invest in them. Investment analysts have been forecasting that opportunities related to water in the 21st century could rival the same opportunities oil offered in the 20th century.

While researching data for this post, I compiled various statistics that made a compelling case for why the world’s thirst for water will generate a global call to invest and develop various systems and technologies to safeguard the availability of this precious resource.

There are various ways to participate in this industry for long term investors. A simple conservative and diversified way to approach this sector, are three exchange traded funds (ETFs) that track the performance of the three major water sector indexes. These funds are a convenient way to invest for the long term while maintaining a mix among water companies that either operate as utilities, manufacture pumps, plumbing, filters, irrigation systems, water treatment chemicals, or develop desalination technology.

The three major water indexes and the ETFs that track them are:

Index - S&P Global Water Index, (SPGTAQUA)
ETF – Claymore S&P Global Water Index, (CGW-AMEX) Price as of close 6/1/2007, $25.67
Performance & Fund Data

Index – Palisades Water Index (ZWI)
ETF – Powershares Water Resources Portfolio (PHO-AMEX) Price as of close 6/1/2007, $20.60
Performance & Fund Data

Index –ISE Water Index (HHO)
ETF – First Trust ISE Water (FIW-AMEX) Price as of close 6/1/2007, $21.18
Performance & Fund Data


Investors should be aware that the statistics measuring the historical performance of these funds are limited mainly because the Claymore and First Trust ETFs have just recently started trading. The first ETF of this group, the Powershares ETF, has been trading for more than a year and has had an impressive 18 month return of roughly 17.5% since the funds inception date of 12/06/2005.

The Palisades Water Index for which the Powershares ETF tracks has had an annualized 5 year return of over 15% outperforming both the S&P 500 which was up a little over 6% annually and the Dow Jones Utility Average which was up a little over 10% annually over the same period.

The three major water indexes all had 3 year annualized percentage returns in the mid 20 percent range. Not bad for investing in water.

Consolidation and M&A activity is picking up in this sector around the world. In the UK for example, recent water company acquisitions and privatization of companies within this group has spurred a flurry of activity and has inflated stock prices in that market. It is only a matter of time to see the same type of activity in this market and in water-rich nations such as Canada, Brazil, Russia and China.

For the more risk tolerant investor, there are many great individual stock stories in this group and it is our intention to keep readers up to date with follow up highlights of the best growth opportunities and trading strategies available in the group. For now though, if you are looking for goods reasons here are some facts gathered from various sources.

In 2002 the World Health Organization reported that:

1.1 billion people lacked access to improved water sources, which represented 17% of the global population.

Of the 1.1 billion without improved water sources, nearly two thirds live in Asia.

In sub-Saharan Africa, 42% of the population is still without improved water.

Between 2002 and 2015, the world’s population is expected to increase every year by 74.8 million people.

According to the Website http://www.water.org:
• Of all water on earth, 97.5% is salt water, and of the remaining 2.5% fresh water, some 70% is frozen in the polar icecaps. The other 30% is mostly present as soil moisture or lies in underground aquifers. In the end, less than 1% of the world's fresh water (or about 0.007% of all water on earth) is readily accessible for direct human uses. It is found in lakes, rivers, reservoirs and in underground sources shallow enough to be tapped at affordable cost.
• If all the earth's water fit in a gallon jug, available fresh water would equal just over a tablespoon.
• A person can live about a month without food, but only about a week without water.
• The average American individual uses 100 to 176 gallons of water at home each day.
• The average African family uses about 5 gallons of water each day.
• More than 200 million hours are spent each day by women and female children to collect water from distant, often polluted sources.
• Approximately 60 to 70% of the rural population in the developing world have neither access to a safe and convenient source of water nor a satisfactory means of waste disposal.
• Water systems fail at a rate of 50% or higher.
• According to the UN, 20% of the world's population in 30 countries face water shortages. This number is expected to rise to 30% of the world's population in 50 countries in 2025.
• Some of the world's largest cities, including Beijing, Buenos Aires, Dhaka, Lima, and Mexico City, depend heavily on groundwater for their water supply. It is unlikely that dependence on aquifers, which take many years to recharge, will be sustainable.
• Every $1 invested in children, including money to improve access to clean water and sanitation, saved $7 in the cost of long-term public services.

The United Nations Educational, Scientific and Cultural Organization (UNESCO) World Water Development Report (WWDR, 2003) from its World Water Assessment Program indicates that, in the next 20 years, the quantity of water available to everyone is predicted to decrease by 30%. 40% of the world's inhabitants currently have insufficient fresh water for minimal hygiene.

Ref links:
World Health Org Info
http://www.water.org/resources/waterfacts.htm
http://en.wikipedia.org/wiki/Water

“Information obtained in this post is from sources believed to be reliable. The writer is not responsible for any errors or omissions contained herein. Investors should consult with professional investment advisors and should know their own risk tolerance before investing in any items highlighted. The writer is a full time investor and day trader and engages in trading strategies with regards the highlighted items.”

Looking for Clean & Green? Waste Management picks up, delivers and recycles

If anyone were to ask me what company represents the fight for a greener planet, I would have to say Waste Management Inc., (WMI-NYSE), trading just below $40 per share. Since 1894 this company has been taking out the trash and have now built a respectable portfolio of solutions to profit from waste-to-energy implementation and recycling forethought.

I also have to admire any company who engages in a business that inherently gets the "dirty business" label yet takes on the challenge and corporate bravado to actively clean up the waste of the world. Considering the fact that environmental awareness, regulations and scrutiny are increasingly dominating today's headlines, I like the company's long term prospects. I like the name so much, I vote for a government department called the Waste Management Agency, whereby Uncle Sam could be his own best customer.

How green is Waste Management?

Taken from the company's Website they boast:

413 collection operations, 370 transfer stations, 283 active landfill disposal sites, 17 waste-to-energy plants, 131 recycling plants, 95 beneficial-use landfill gas projects and 6 independent power production plants. These assets enable Waste Management to offer a full range of environmental services to nearly 21 million residential, industrial, municipal and commercial customers.

We recover and process methane gas, naturally produced in landfills, into an energy source for generating power. We currently supply enough landfill gas to create more than 250 megawatts of green energy that could power about 225,000 homes or replace about 2 million barrels of oil per year.
With 495 vehicles now converted from diesel fuel to clean-burning natural gas, we operate one of the nation's largest fleets of heavy-duty trucks powered exclusively by natural gas.
We have taken a leadership role in promoting the recycling and reuse of materials that would
otherwise end up in landfills. Waste Management, combined with its wholly owned subsidiary WM Recycle America, is North America’s largest recycler. We process 5.8 million tons of commodities each year, saving approximately 41 million trees through paper recycling alone.
Through its waste-to-energy plants, WM uses solid municipal waste to generate power. This reduces the volume of the waste by 90 percent and saves space in local landfills while providing an economical alternative to the use of fossil and nuclear fuels.
WM partners with communities, government and industries to redevelop closed landfill sites into recreational and commercial facilities such as parks, athletic fields, campgrounds and golf courses.
Across North America, we work with environmental groups to set aside land to create and manage wetlands and wildlife habitats. Our landfills provide more than 16,000 acres of protected land for wildlife; 15 landfills are certified by the Wildlife Habitat Council.
WM helped found the Chicago Climate Exchange, an organization established to provide a voluntary marketplace for reducing and trading greenhouse gas emissions.

http://www.wastemanagement.com/wm/about/Overview.asp

The stock suffered dearly following an accounting scandal and management shakeup in the summer of 1999, but has since recovered to a solid track record of growth and shareholder value. The chart below represents a comparison of stock performance to the S&P 500. WMI in Magneta, S&P500 in green.



I do not believe this is the best price to execute entries into the stock based on the chart analysis below and an uneasy feeling that stock prices are due for a breather, but over the course of the next couple of months any pullbacks will offer a chance to get in for the long term (1-3 years) where I can see this stock north of $50 per share.

For track record purposes, the recent breakout from the previous 52 week range enables me to initiate a position here for a long term buy and hold call.



For now the company pays an investor a 2.50% annual yield in dividends and trades at a discount to it's industry peers. So for investors looking to "clean up", Waste Management makes it their business.

Stock Market at a critical level for investors

Stock Market chart watchers should pay close attention to what the major averages do in the next couple of days, especially the big daddy Dow Jones Industial Average.



If we pull back in the next couple of days then a classic double top would start to form on the daily chart which will probably lead to a second major pullback as we experienced in the end of February. Of course if we break out to new highs then that would be healthy so long as volume is strong, however already early into the first quarter earnings season, results are starting to disappoint.

I am using this opportunity the introduce the six major market average ETFs to my model portfolios. Details will follow in a later post today. For now, this may be a good time to take any near term profits and hold back to make new entries at lower prices.

I am executing long entries into 3 managed exchange traded funds that short the Dow Jones Industrial Average, the S&P 500 and the Nasdaq 100.

DXD - Ultra Short Dow 30 Proshares, SDS - Ultra Short S&P 500 Proshares, and QID - Ultra Short Nasdaq 100 Proshares. These three funds are managed funds whose objective is to move at twice the rate of the underlying moving averages.

I am also executing short entries into the three regular exchange traded funds that represent the same underlying averages only the objective is to match the indexes at the same rate of return.

These are DIA - Diamond Trust Series representing the Dow Jones Industrial Average, SPY Spyder Dep Receipts which tracks the S&P 500 and QQQQ Powershares QQQ series trust which follows the Nasdaq 100 Index.

The objective is to get a gain over any near term (1-4 weeks) correction where we will close our shorts and buy into these same funds at lower prices.

Detailed posts will follow on each of these positions.

SMI initiates coverage on UTH - Utilities Holdrs

Investors in search of a safe place to park money for the long term should consider adding to their portfolios UTH, Utilities Holdrs, a diversified mix of utility stocks.

While there are many individual stocks that offer long term growth and solid dividend returns, this basket instrument helps to take the guess work out of deciding which stock in this sector is best. Most recently this sector has been bucking the downtrend in the markets since the start of the year. The chart below displays the outperformance of the Utilities versus the Dow and S&P.




Institutions looking for some safe havens having been moving into this sector for many reasons.

The recent prospects of private equity buyouts and consolidation in the sector along with lower interest rates boosts the near term performance potential for both long term investors and short term market timers.

Analyst Thomas Chenoweth will be adding UTH to his Top Pick portfolios on any near term weakness so stay subscribed for this market call.