Basically in summary - The winning sectors of 2005 will be the very same sectors winning in 2006.

Pisani's Latest - A sideways market isn't a bad market at all (spinning faster than those new SATA Hard Drives @10,000 RPM)

Each morning I wake up to find a market leader fail to deliver but there are always a few of its sub par friends to pull up the markets. And when all fails pump the bad company that put in a bid to buy another and view that as M&A optimism.

Where the 2006 M&A Optimistic Spin Phrase Goes as Such - M&A activity justified unlike 2000 or this time we have a real reason for the Nasdaq crossing 3000 (earnings growth)

To those that watched the Canadian Elections - People voting were extremely concerned with job growth and stressed that these numbers of growth they see are in jobs such as cab drivers, garbage collectors, janitors and so forth and not jobs where people with professional degrees can surge ahead. Nothing wrong with the jobs mentioned however, it's important to note mid-high end jobs are actually shrinking due to cuts and misses and the dips in jobless claims figures that move markets aren't being defined as such but as a whole.

/d

Sentimentrader.com 012406

"As for the broader market, we are finally beginning to see the correction reflected in some of our breadth and sentiment guides. The TRIN for both the NYSE and Nasdaq is now firmly oversold, which has been a fairly reliable buy signal, at least in the short-term. Odd lot short sales hit a new all-time record on Friday, and were high again on Monday, pushing the average we track on the site below its trading band - another buy signal that has been successful lately.

The equity put/call ratio as reported by the Chicago Board Options Exchange closed at a remarkable 0.38, one of the lowest readings in years. That typically would be a sign of excessive speculation on the part of traders, and potentially bearish for the market in general, but on further examination we see that drug company IVAX accounted for a whopping 38% of all call volume. Without that company's options, the put/call ratio would have been a much more normal 0.61, so I don't think anything should be read into Tuesday's low reading.

We have some decent signs that a short-term low is at hand, but as I noted last time I'm not particularly enthused about being aggressive on the long side right here. I do think we will breach Friday's low at some point during the next few weeks."

Bill-

It looks like the market doesn't like it when Dow components continually miss their mark. Fancy that! Add JNJ to the list with GE, DD, AA, AXP, etc etc etc.

Bill-

What about GE here? Below 30 RSI on the weekly and the daily has dropped to 10. VL estimates earnigs at $2 per share and a PE of 21 for a target of $42 plus the 2.8% yield. It's now trading a fraction under $33.

GE-

FILER: IMMELT JEFFREY R
TITLE: Chairman of the Board

DATE TRANSACTION SHARES PRICE VALUE
1/23/06 Purchase 15,000 $33.54 $503,100

no position

DIS-

Can Steve Jobs 'halo' bring 'magic' back to DIS?

DIS

PE: 21; 10 year annual average range 21-40

PS: 1.56; 10 yar 1.2-3.2

PB: 1.91; 10 yar 1.3-3.3

PE AAPL: 40
PE PIXR: 40

Any thoughts?

long DIS

stockman-

I think there is very little downside (10%)and a lot of upside (100%) if this is a 3 year commitment. JMHO. I may buy it myself.

Is anyone adding to oil on this pullback? I did.

I'm still watching SU RSI(14) = 66 and CNQ RSI(14) = 60. Both still seem expensive, despite the ~5% drop today. Will see what happens tomorrow...

Besides, my hairy trigger executed on CHK last week, and it's been a dog for me, esp today.

MarkM

Added to energy also. DIS is a longer term bet for me. Hope it doesn't take 3 years though!

Also long term bet on BSX placed here. Would like to see it hold that low from Friday to add further.

long- DIS, BSX

Dave-

Good names there. I put my toe in the water on CNQ. Ouch! Got scalded. Toe in water on VLO, APA. Will add if settle back tomorrow also. High risk buy but are there any that aren't in a bull market?

Long CNQ, VLO, APA, CHK, CVX.

All-

SNDK getting hammered today. Off 6%. Cara Global 100 stock.

If this stays in the red I think there will be some fear tomorrow. What say all. Market got a HUGE break on oil but earnings is really weighing this thing down. Pisani- "But only 20% of the companies are missing their estimates!"

tyx more important than earnings OR oil-

imho

tyx-

Just wondering... If evidence suggest slowing for home sales... and bonds fall... have to think about that. A nightmare... could be that when the fed is done foreign buyers turn away and yields rise? Think about that, the fed couldn't push long rates up when they wanted to. They were not in control of those rates, forign buyers were. What if the fed finally gets what they want, pause, and long rates rise because THEY DON'T CONTROL THOSE RATES?

Could foreign investors follow our lead and invest THEIR money outside the U.S.?

Not saying that will happen but one needs to consider what a change in trend on the long bond could mean... for bonds, real estate and stocks.

Keeping an eye on bonds here.

All-

My previous should have been "a Cara Global 100 Best Company", as mentioned by Bill previously (see his entries re same). Not to be taken as recommendation here.

Stockman - It seems plausible that they control rates to a degree with open market activities (through M3 injections), though for how long..?

I asked MarkM this question - if/when the day comes, how do you play a bull market in interest rates?

ClaudeG -

By bull mkt in interest rates I assume you mean rates are going up and thus bonds are headed down. To play that you can short TLT or buy puts on it...short XLF like Bill did... or Rydex has an inverse bond fund... or if you like the leverage (and risk) sell the ZB futures contract short.