Week's End

There was an interesting article about the GAO's report to Congress about the looming financial catastrophe facing the U.S. This is getting much less attention than it deserves. You can read the original GAO report here. For the Federal Government to issue a report sub-titled "Saving Our Future Requires Tough Choices Today" is surprisingly candid. And you know how adept the government is at tough choices (hint: it isn't).

Here's one graphic from the report, showing how the social security trust fund is going to dip into the red in just ten years. Just look at the deficits grow to $400 billion per year!


It's been a while since I mentioned any FOREX trades, but the New Zealand Dollar (NZD/USD) looks pretty interesting as a short. I'd say if it trades anywhere north of 73 cents, I'm wrong. I've drawn a horizontal line suggesting what seems to be a strong resistance level.


My OIH calls are doing well. All the press about crude oil's plunge in prices in a good contrarian indicator of a short-term bottom.


I mentioned Abbott Labs (ABT) a while back as a promising bullish play. It seems to be going that direction. The strong volume only helps.


Coldwater Creek (CWTR) got hammered today. Trendlines did their magic once again. Chartists were given fair warning recently when prices violated the ascending trendline. Prices pushed higher from there, but then got really ragged around the trendline again.


One new short idea is Martin Marietta (MLM). This appears to be a solid double top. This kind of pattern is nice since the risk is relatively low (e.g. the stop price would be $114).