MarketsSOME NEW THINGS IN THE MIX

I was wary last week that the dollar rally was a fake out that occurred because the Japanese bought $60 billion over a holiday when New York trading was thin. The dollar headed down this week but once again TALK about a European rate hike caused it to spike. I think this shows we are very near, or at, a bottom in the dollar. Talk shouldn't move markets like this. Gold's failure to rally with the dollar is also a tip off, keeping in mind that Germany is going to flood the market with $6 BILLION worth of gold over the next four years. That amount is fifteen million ounces of gold or a million and a half gold contracts on the futures market. A huge amount.

Keep in mind that $5 billion went into mutuals last week. This means that the dopes are beginning to get brave again, not a real good sign. The JOBS numbers is the only thing that matters and we better see some big jobs numbers very very soon. Don't confuse the weekly employment data with the truth. JOBS is what matters. The next report is February 6th.

The political risk with Dean out of the Democratic mix is much less. Don't believe all the stuff you will be reading about "socialist" Kerry, his totally crazed botoxed bitch, or anything else. When he looks like a threat the market will tell you to get out, don't think about it. Just watch your numbers, particularly the indexes. The Dow will not be the main index from now on. Watch the S&P 600, the NASDAQ 100, and the Russell. Also keep an eye on the sectors. The economy looks very good.

FHA giving no down payment home loans to flakes could be a very bad thing in the housing market in a year or two. They will be making loans to people who cannot make even a one or two percent down payment; their families are unstable or headed by "single moms" (a special interest group to the feminists). All will be horrid credit risks. The people who will "buy" these homes have no money, bad jobs, and will tend to let their housing become run down because they will lack the money to keep them up. When they have to sell the homes the market will be flooded with run down used homes. Watch the unsold inventory of used homes in about a year.

Things are looking good. Have tried and true signals to sell or buy.

BTW, many emails have asked me why I am not posted on Carnival of the Capitalists. I am not posted because the entire sight is total bullshit. They asked me to send them stuff to post. They are posting everything under the sun. The worst thing a small investor can do (or any investor for that matter) is to listen to everybody. Get ONE system and stay with it. Carnival of the Capitalists should be an investors suicide watch. I guarantee you that nobody who is successful in the markets reads it more than once.

One other thing. The inflation numbers DO NOT include the retail cost of food. As any shopper will tell you, food prices are soaring. I think the watchers are lying like hell. Wheat prices, corn prices, beef prices, soybean prices, all are near all time highs. I think we are having inflation right now and the good old government is not reporting it. Sooner or later some lazy asshole in a news department might spot this, and will be fired; nobody in the news business wants facts.