Market Predictions

ProForecasts for the week beginning, Sunday, November 15th, 2009


Collective-intelligence from the top sources
of financial market direction and stock recommendations to consider!
from Jeff Sonnenburg, Tucson, Arizona

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.

>> Market Direction <<<

OVERALL MARKET DIRECTION from ProForecasts: (see disclaimer)

PROFITABLE ACCURATE FORECASTS:

Sunday, November 8th, 2009: “I forecast that the market may stay here this week but the next and permanent rise up will be within the next two or three weeks. I really forecast that 11,000 is in view.”

July 2009: Stock market solidifies this range as a base for a decent rally through the summer (and then after a brief correction to solidify a new base, a rally into the Fall and a better-than-expected holidays to about 10,000+ for the Dow.) Interest rates are at their low and will start to increase by 2010. Housing market has also bottomed through this year.

November 2009: As I forecast, the market is UP 6.3%!

“DECEMBER/JANUARY EFFECT” (December 31st to January 31st): "December/January Effect" to refer generally to interesting results re: small-cap stock performance near year-end. Investors have used the term "January effect" to refer to the phenomenon in which small-cap securities often have had higher rates of return than large-cap stocks in the January months.

NIFTY FIFTY: One logical explanation is that U.S. dollar weakness is benefiting large cap companies (which often have international operations that benefit from a weak dollar) more than small cap companies. If that is the case and U.S. dollar weakness continues, we could see a repeat of "Nifty Fifty", in which market strength is largely driven by the largest cap stocks. http://seekingalpha.com/article/173536-nifty-fifty-redux-large-cap-strength-small-cap-weakness?source=hp_wc

As I’ve forecast for months, the recession is over (some economic indicators reported that too this week) and the markets will head up significantly and then the economy will follow in about three months with a marginal increase little by little into 2011.

IT IS TIME TO CONSIDER BUYING REAL ESTATE: As I’ve forecast for months, the Housing market has bottomed and house prices will slowly go up from here. Also interest rates will go up quickly from here (was just reported to be the Feds new policy). This will be the best time to have bought residential real estate and then about the third-quarter of 2010 should be the best-time to buy commercial real-estate. I don’t see any crisis in commercial real estate as so many are predicting.

The US is no longer the super-power in any way. It will be clear very soon that China and Russia are taking that role. The dollar will be replaced as the world currency. Previous allies will align with other countries and the US will have more adversaries or at least non-allies slowly in 2010 and clearly by 2011.

“But back home, Obama's bow in Japan seems to have grabbed much of the attention being paid to the trip. The gesture appears to have touched a particularly raw nerve among Obama critics who said the president has hastened America's decline as a world superpower by being too apologetic and too deferential in his dealings with other world leaders.”

http://www.breitbart.com/article.php?id=CNG.50fd6792b83ac59fea414195ebeb58b3.2d1&show_article=1

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

Silver

(this laggard to Gold has more relative profit potential at this point)

Platinum

(there is probably more profit potential here than in Gold for awhile)

Gold

(while it is up quite a bit already from when I forecast several months ago, it still has a ways to go up

to 1450 in the first half of June 2010 or earlier and in time up to 2000, say in 2011 or 2012)

QQQQ

(the tech sector will be one of the first to benefit from the continued bullish market)

DIA

WMT (“Market Whales” Buffett bought a significant stake and Soros also bought a smaller stake!)

All commodities

***DJIA will be up to 10,618 to 10,754 or higher between December 2009 to January 2010. The SP500 will be between 1200 to 1250 or higher during that same time.

Top investment recommendations from an aggregate of the top 100 investment blogs:

1. Stock Market

2. Oil

3. MU

4. FCX

5. Gold

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

AAPL, AMZN, BDX, BMY, BBY, DE, HPQ, INTL, JCI, KO, MCD, MSFT, PGM, POT, SWY, TGT, XOM

STOCKS AND INVESTMENTS from one top advisor:

ADBE, AGN, AMAC, APA, ARNA, BAC, BRC, BTE, CCL, CLX, CMS, CRM, CRMT, DDS, DNDN, ELN, FCX, GE, GENZ, GG, GGR, GPRE, INO, INTL, ISIS, HNZ, JAV, JCG, JST, KERX, KRE, LCI, LFT, MNTA, MON, MOS, MYRX, NEM, NLST, OGXI, PGM, SBUX, SFI, SINA, SJM, SKS, TECD, TJX, TNH, TSL, WLT, WUS

ETF: TUR

FUND: ADVDX

HEALTH PLAN: It will be passed, I’m going to hesitantly forecast, before Christmas. I don’t see it going into the new year, 2010. It will have a delayed “open option” where if the system is not covering everyone well enough, the “open option” kicks in (which will be highly debated then).

ABORTION IN THE HEALTH PLAN: Will be included in the Health Care bill but abortion will handled by some separate section of the Health Care Plan by in the written plan and in the administration to oversee it.

TAXES: Taxes will go up during the Obama Administration first be Congress to not renew Bush tax cuts and second to pay for more benefits for certain groups of people.

DOLLAR will go below critical levels at 75 to probably at least 74.50 for a short time then propped back up a little.

UNEMPLOYMENT will not really improve much until June 2010.

MICROSOFT AND MURDOCH will do their web-pact and a major war will fought between them and Google with at this time no apparent winner but probably a significant gain for Bing and a slight loss to Google.

INTEREST PAYMENTS ON DEBT: “In concrete terms, an additional $500 billion a year in interest expense would total more than the combined federal budgets this year for education, energy, homeland security and the wars in Iraq and Afghanistan.” CBS News and CBO

COLLEGE COST INCREASES:

BUFFETT: “building deficits now can be paid down later”

10% CORRECTION: Another advisor: “10% correction”

OMG (Oh My Gosh): Each job at GM saved cost $1.5 million. Can you imagine how many jobs in growing sectors that could have made?

OMG (Oh My Gosh): On average government’s estimates for projects (including Medicaid, etc.) end up costing 700% than projected so the Health Care Reform will cost!

COMMODITIES CORNER:

CORN: “Buying corn in late October/early November and holding until mid-May is one of the best seasonal trades out there. This trade has worked 34 out of the last 40 years, for a success rate of 85%. This trade has had a 10-year win streak that began in 1998. Past performance is not indicative of future results. With more competition for corn inventories from animal feed, energy needs and foreign business, coupled with the growing cycle and harvest delays, we think being long corn makes sense. Corn prices have started to move higher with March 10’ corn advancing 25% off a 3 ½ year low made just over 2 months ago. We suggest gaining long exposure in March or May contracts via call options or long futures with option protection. We see the $3.75/3.80 level acting as support and expect prices to trade near $4.80 in Q1 next year.” www.seekingalpha.com