6/10/08

Economics

In case you missed this story, another ‘do as I say, not as I do’:

http://mjperry.blogspot.com/2008/06/senate-votes-to-privatize-its-failing.html

More data and some perspective on US employment:

http://mjperry.blogspot.com/2008/06/adjusted-for-labor-force-todays-jobless.html

More data on untappable US oil/gas reserves:

http://mjperry.blogspot.com/2008/06/us-policies-put-most-us-oil-off-limits.html

Politics

Domestic

Since Obama has emphasized judgment over experience, his first judgment call seems to be fair game. This from Mickey Kaus--no Republican he:

http://www.slate.com/id/2192801/#embarrassed

International War Against Radical Islam

The Market

Technical

The rebound in stock prices yesterday took the DJIA (12280) back above its April 2008 low (12263); the S&P (1361) did not regain its August 2007 low (1370) though it remains above its April 2008 low (1325) and the lower boundary of the 1982 to present up trend line (1317). All in all, not a bad day; but while, in my opinion, it re-sets the DJIA trading range to 12263-13133, it leaves the lower boundary of an S&P trading range uncertain. That need not be terribly negative; it just leaves a lingering uncertainty.

Added to that is that despite the Averages being up, whole sectors got really whacked hard yesterday suggesting that the internal strength of Market is not as sound as the performance of the indices would have us believe. As a result, I think discretion remains the better part of valor. Tomorrow, our Portfolios do nothing.

A look at stock prices after a spike in bond yields:

http://bespokeinvest.typepad.com/bespoke/2008/06/largest-one-day.html

Fundamental

A new ‘misery’ index from Bespoke:

http://bespokeinvest.typepad.com/bespoke/2008/06/bespokes-tortur.html

Subscriber Alert

Go to www.strategic-stock-investments.com and see what we are buying/selling today.

CNBC Million Dollar Portfolio Challenge

Portfolio 1 (82.8%): Sold: General Dynamics, T Rowe Price

Bought: Colgate Palmolive, Johnson Controls

Positions: Automatic Data Products, 3M, Johnson Controls,

Colgate Palmolive

Portfolio 2 (84.4%): Sold: Luxoticca, Schwab

Bought: Nike, Ecolabs

Positions: Franklin Resources, Graco, Ecolabs,

Nike

Portfolio 3 (90.7%): Sold: Schwab

Bought: Mastercard

Positions: Emerson Electric Ross Stores. Mastercard, Federated Investors

Portfolio 4 (79.6%): Sold: Home Depot,

Bought: Linear Technologies

Positions: Linear Technologies, Blackrock, Peabody Energy, Mastercard

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