Car Wars

Don't ask me where this came from but a simple post title uncovered this gem of a pic. It looks like the market is at the mercy of GM and Chrysler saga for the time being. On Monday we got the expected pull back and profit taking and today we get a pop to the upside with a late day sell off.

Where do we go from here ? well Obama has given these two dud companies 60 days to come up with a better plan then they came up with last week. I would say there better be some big changes in the meantime to how they plan to make us buy cars when most American cars are built so we want a new one every few years cause it's turned into a piece of crap overnight and the warranty has expired to boot.

The Japanese are one up on us and these two have to learn how to compete with quality then the quantity will come. Don't ask me how but they have to figure out a way or the markets could take a nasty hit when everyone is cashing out for summer holidays.

Bottom line is we are coming into earning season again so that will dictate the flow here. One caveat is the Obama plan for bailing out homeowners which I thought would be out by now. If it is a positive plan we could get another short term rally as some stocks like Apple were quick to recover today from yesterdays sell off. Be careful out there and buy quality plays,especially in the juniors.

Gold

Just a few comments on gold and the gold market. I have always been an admirer of gold but not a true blue gold bug. I understand the importance of gold in the currency market and have heard all the conspiracy stories ad nauseum. My bottom line is what the TA charts tell me because I am no economist nor metals expert.

There are two camps out there right now and one says all the money Obama is pumping into the system will cause massive inflation and gold will soar into the $2000 plus range,and the other says, the FED calls the shots as well as world powers who control the small and tightly controlled gold market and any hope of gold soaring into the megasphere is not going to happen.

This is what brings me back to the TA charts. Why ? Because it takes the emotion out of it. How many times have we been burned buying at the frenzy peak of a market ? we all have, and gold has been one of the worst because time and time again when it gets nailed it, it gets smoked in spades to the downside and major cash is lost in a matter of minutes and hours,not days or weeks like other sectors that buy you a bit of time.

Therefore when gold breaks $1000 and forms a solid base above that level for a few weeks then I will be in there like a dirty shirt because we know a "MAJOR" trend change has ocurred and thats all I care is that is has changed in a big way and not so much why. Any major psychologocal shift in a sector means opportunity knocking bigtime.

Once this happens, I personally believe we will have a new gold bull established and major money will be made if you are in the right companies and that is what I am always on the hunt for when I see a new major trend establish in any sector.

I seek out those small unknown companies that know how to put deals together, finance them and have the quality management to move them forward. If you have any companies you like,feel free to post them and we can discuss.

Short Term Top ?

Well since I last posted the market has been on quite a tear with the DOW and TSX gaining around 1000 points each with a few blips in between. The question now is will the markets take a breather and correct back down or will they just do a slight pullback then carry on higher ? That is the trillion dollar question on everyone's mind. So many factors, so many political interjections as well as market interjections to keep things positive.

I am leaning to the "slight pullback camp" as there is some, I repeat "some" talk of signs that the markets are bottoming as less bad news is coming out which is always a positive signal.

We also have the "spring fling" effect to make cash before summer but in the end I think it will be based on the employment numbers. If they can show a slowdown effect then this market may head higher as much as the TA charts are screaming at me to short some overbought stocks like Apple and a few others.

Sparrow Ventures V.SPW.P

Just to let you know about my new pick,it is Sparrow Ventures,V.SPW.P, a capital pool company I invested in last summer. It has taken them awhile to pull a qualifying transaction together but it looks like it was worth the wait. They have aquired JSX Energy Holdings, an oil exploration company out of Thailand with from what I can see on Google ,has very large land holdings near a prominent oil producing basin in Thailand.

Information is limited at this time but the news release on the wires show new directors coming on board with major experience and credentials.

The stock is currently halted and I assume there will be a financing as per the press release so it is unknown when it will trade again but is one to put on you radar for when the halt is lifted.

The symbol is V.SPW.P.

Friday Flop

Well that was quite the week wasn't it. The bullish rally we were hoping to continue fizzled the last two days but the DOW did eek out a two week close at the high but just barely with the Fed infusion of another gazillion dollars leaving the market scratching it's heads.

The TSX on the other hand closed down 184 points today but had a very good week with the Loonie making a recovery as the US dollar slipped and gold and oil spiked on the influx of the Fed. Next week should be interesting to see where all these inflation signals take us. I say oil and gold go up but I won't bet anything big with the move they put in this week.

Remember today was options expiry week(every 3rd Friday) so that could have caused the sell off with all the profit taking.

Riding the Wave

Hang ten buddy. Four straight days in the green is amazing stuff, but we were due for some sort of bounce or calming after the recent market mayhem. Now we have to see where the next set of economic news takes us.

The G-20 met this weekend and trying to rope in all the toxic loan crap is top of the list so we will see tomorrow any market reaction. I am of the thought we will be bounce around just over 7000 on the DOW.

I also believe we have to look at the price of oil to see where the real economy is taking us. Is OPEC going to make more cuts ? Have they really been cutting back on the past cuts ? Will Russia be allowed into OPEC ? These will be important indicators as to how the big boys plan to make money on their oil and what the economies can handle paying under the pressure of global contraction.

I am also watching the price of gold. It is very indicative of the currencies but there is some odd behavior of late I will look at in my next post.

Run WIth the Bear

Another big day in the markets. As you all know today was day 3 of "maybe" the beginning of a real bear market rally. How long will it last ? who knows but I will take anything at this point. Citi making money, GM giving a couple billion back ? what the hell is going on here ? I thought Armegeddon was coming ?

Recap , DOW up 239, NAZ up 54. TSX up 271 and Venture up 19. Oil up huge hitting $47 almost a 10% pop with gold up $19 to $928 on the Comex.

The indicator I look for is the VIX and it is at a several week low hitting 41 and if we break below 40 tomorrow watch for the bear rally to continue as some of the $4 trillion on the sidelines hits the asks and squeezes the shorts.

Caution must rule though as we never know when a bomb comes out of left field.

Emergeo Solutions V.EMG

I would like to introduce you to my first investment pick.

The company is Emergeo Solutions, V.EMG on the Venture. They are a very up and coming company that specializes in, and is poised to be the world leader in emergency software systems.

Their system is based on mapping and security solutions for all types of disaster situations from earthquakes to forest fires to floods as well as toxic gas accidents and predicting their direction as well as a common communication system by all levels of emergency resuce teams.

More can be found at their website at http://www.emergeo.com/.

My main points for qualifying them as my number one pick :

1. Growth - they have secured over $700,000 in contracts in the last quarter.

2. The associations they are making in Dubai, as well with CAE and some very well known big companies that are local and international.

3. They are a recession proof company. Homeland security is always at the top of any corporation or government and if you see EMG's past press releases you will see they are hooking up with US governmental agencies and that speaks huge to me.

4. The management and the people they have hired the past 6 months who are highly experienced in emergency management is very impressive.

5. The inovation of their software with the worlds first portable emergency operations center is amazing. See the Feb. 23 PR for details.

6. Note the last financials that states they have proposals out for multi-million, multi-year contracts.

Bottom line ? This company's system saves lives and that is utmost in my liking this company.

I own shares at much higher prices and add when I can down here in the 30-40 cent range.

Closing Bell Update

Markets closed in the green today after yesterdays biggest one day percentage gain since November 21. The DOW eeked out a slight gain up a mere 3 points,the NAZ closed up slightly better up 13 points.

The TSX gained 130 and the Venture is up 5 points.

Gold made a move back up $11 on the Comex to $911 after dipping below $900 the past 2 days flirting with the 50 day trading average.

Oil dipped back down again to $42.78 ,down $2.78 after weekly supply numbers showed a gain in oil stockpiles. T-Boone Pickens reiterated his $60 before $40 call on CNBC today so we shall see if we hold that line in the sand.

Welcome

Hello and welcome to my investment blog. I have been playing the markets for 10 years now and hope my experience can help you avoid any pitfalls but ultimately to make your stay a profitable one based on solid due dilligence and TA charts.

The markets are very scary right now and takes nerves of steel so please use a broker or advisor's advice as I am NOT a professional.

My disclaimer is : please use my site at your own risk. I invest mainly in high risk stocks that may swing in either direction very quickly and I take no responsibility for any losses incurred by following any of my picks or investment ideas.