Market Predictions

ProForecasts for the week beginning, Sunday, October 25th, 2009 (55.7% annualized so far 2009!)


Jeff Sonnenburg, Tucson, Arizona

Collective-intelligence from the top sources

of financial market direction and stock recommendations to consider!

DISCLAIMER: The information provided herein is for information purposes only. In no way should the listing of any security here be construed as financial advice. Past performance is no guarantee of future results. The buying and selling of securities involves risk and may not be suitable for everyone. Always consult your financial advisor.

GOOD STOCKS AND GOOD TIMING = MAJOR RETURNS!

JOYG 56.55 (for consideration July 19th at 36.81 = 19.74pts UP 53.6% in thirteen weeks = 215% annualized)

AAPL 203.94 (for consideration January 4th, 2009 at 90.75 = 113.19pts UP125% forty-one weeks = 158.2% annualized)

MSFT 28.02 (for consideration July 26th at 22.98 = 5.04pts UP 21.9% in twelve weeks = 95.0% annualized)

NFLX 54.89 (for consideration February 1st, 2009 at 36.95 = 17.94pts UP48.6% thirty-one weeks = 81.4% annualized)

C 4.46 (for consideration August 8th at 3.85 = 0.61pts UP 15.8% in eleven weeks = 74.9% annualized)

ProForecasts’ results for 2009, model portfolio from KaChing, 147.9% YTD and how ProForecasts ranks with the top results at Marketocracy.com at bottom of this email.

>>> Market Direction <<<

OVERALL MARKET DIRECTION from ProForecasts: (see disclaimer)

DJIA 10,000 to 11,000 with some consolidation probably will happen still but the market is now on it’s way up that will even increase more when holiday sales come out good. Take some profits off the table like in Apple. Don’t trade with profits! Selling into strength would be a mistake so don’t play short.

Will there be inflation or deflation seems to be a debate. I forecast there will be deflation in wages and inflation in commodities. Unemployment will stay high through the first half of 2010.

As I’ve forecast for a month or more, housing has bottomed and there will not be a better time with low prices and low rates. Remember, as always, if all the signs are there, most of the opportunity is gone.

Dollar will continue to be low for awhile yet into 2010.

WARNING: Index funds have not made money in years!


STOCKS AND INVESTMENTS from at least two top or more advisors and ProForecasts:

AAPL (again, some are suggesting that it will go to $500, hmm, it will continue up but $500 seems a bit much)

STOCKS AND INVESTMENTS from at least two top advisors:

AMZN, PM, SNDK, UNH, WHR

STOCKS AND INVESTMENTS from one top advisor (It’s amazing how often they don’t agree and even suggest opposite directions for the same stock or investment):

AEMD.OB, AMSC, ARTNA, BIDU, BLK, BRO, BRX, BTU, EBAY, ED, EEI, EPB, EV, GILD, GOOG, GSK, HEP, KMP, LPS, LVLT, O, LMT, MATW, MCD, MO, NEU, NFLX, NWSA, OXPS, PAA, PG, RNOW, SCL, SHEN, STJ, T, THG, UFPI, V, IWEB.OB, YHOO

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Investors Intelligence

This week the ChartCraft measure of stock newsletter editors sentiment was little changed from last week: 49.5% bullish and 23.1% bearish. That’s another week where twice as many are optimistic that the stock market will continue to rise. A remarkable long string of weeks but so far they have been correct.

Hulbert Stock Newsletter Sentiment

The Hulbert Stock Newsletter Sentiment Index (HSNSI) which measures a subset of newsletters which try to time the market continues to be muted. For the most part the HSNSI is showing skepticism in the face of the continuing rally. The HSNSI is about as bullish as it was back in April 2009 when the S&P 500 was trading at 800 - some 280 points lower. That is to say the average market exposure recommended by market timing newsletter is only 32.3% (long) - slightly lower (by 2.3% points) than what they were recommending 6 months ago. Such an unflappably consistent skepticism in the face of a gravity defying rally hardly gives the bears much ammunition.