CNBC Million Dollar Portfolio Challenge Bonus Bucks Answers for Tuesday, November 1, 2011

CNBC Portfolio Challenge Bonus Bucks Answers for Tuesday, November 1, 2011 and CNBC Million Dollar Portfolio Challenge

1. According to the Bank of England, how many mortgage approvals took place in the United Kingdom in September?

ANSWER: 50,967

2. What is the net worth of Asia-Pacific's richest family, the Ambanis, founders of India's Reliance Industries.

ANSWER: $37.6 billion

3. Why does Uwe Parpart think Japan's strength as an industrial society is fading on the international stage?

Answer: Over regulation

According to the Bank of England, how many mortgage approvals took place in the United Kingdom in September?

1. According to the Bank of England, how many mortgage approvals took place in the United Kingdom in September?

ANSWER: 50,967

Ken Langone discusses MF Global

Great interview with Daniel Kahneman on investor risk aversion

For the history buffs-An incredible album fo WWII photos

The Atlantic’s WWII Photo Series

http://paul.kedrosky.com/archives/2011/10/the-atlantics-wwii-photo-series.html

The Morning Journal The death of the dollar

News on Stocks in Our Portfolios

More earnings reports:
Reported Expected
CVX $3.92 $3.42
COL 1.13 1.13

CNBC Portfolio Challenge Bonus Bucks Answers for Monday, October 31, 2011

CNBC Portfolio Challenge Bonus Bucks Answers for Monday, October 31, 2011 and CNBC Million Dollar Portfolio Challenge

1. What European head of state last week told UK prime minister David Cameron that he was "sick of you criticizing us and telling us what to do"?

ANSWER: Nicolas Sarkozy

2. What wealthy Southeast Asian family has a majority stake in Wilmar International, the world’s largest publicly-listed palm oil company?

ANSWER: . Kuok Family

3. How many Tweets per second were sent when Beyonce revealed her “baby bump” on August 28?

Answer: 8,868

Felix Zulauf on the economy and gold

Felix Zulauf on the economy and gold:

The Morning Call Monday 10/31 Chartology

The Market

Technical

This market is way over bought (chart):
http://www.bespokeinvest.com/thinkbig/2011/10/27/all-ten-sectors-overbought.html

Monday Morning Chartology

The S&P is well within its intermediate term trading range (1101-1372) and has now formed a short term up trend (1207-1313).

@AllAmerInvest Eulogy Steve Jobs, PIMCO Bill Gross, Maduff, MF Global Doink, Cain, Happy Hallowing

A Sister’s Eulogy for Steve Jobs

Mona Simpson is a novelist and a professor of English at the University of California, Los Angeles. She delivered this eulogy for her brother, Steve Jobs, on Oct. 16 at his memorial service at the Memorial Church of Stanford University.

Bill Gross, Pennies from Heaven

• Once interest rates inch close to zero and discounted future cash flows are elevated in price, it’s difficult to generate much more return if economic growth doesn’t follow.
• Equity markets should be dominated by dividend yields and the return of capital via share buybacks, as opposed to growth.
• In fixed income assets, we suggest that portfolios should avoid longer dated issues where inflation premiums dominate performance.

Read More

New York Fed terminates MF Global’s status as a primary dealer
MF Global Holdings Ltd., the futures broker run by Jon Corzine, was suspended from conducting new business with the New York Federal Reserve today after posting a record loss.

60 Minutes, Crime, punishment, and the shame of being a Madoff
The following script is from "Madoff" which aired on Oct. 30, 2011

8:22 AM

All American Investor

CNBC Portfolio Challenge Bonus Bucks Answers for Monday, October 31, 2011

What European head of state last week told UK prime minister David Cameron that he was "sick of you criticizing us and telling us what to do"?

1. What European head of state last week told UK prime minister David Cameron that he was "sick of you criticizing us and telling us what to do"?

ANSWER: Nicolas Sarkozy

The Closing Bell There is still a recession to worry about

Statistical Summary

Current Economic Forecast

2011

Real Growth in Gross Domestic Product: +1.5- +2.5%
Inflation: 2-3 %
Growth in Corporate Profits: 7-12%

2012

Real Growth in Gross Domestic Product (revised): +1.0- +2.0%
Inflation (revised): 2.5-3.5 %
Growth in Corporate Profits (revised): 5-10%


Current Market Forecast

The American taxpayer is the banking systems bitch

This interview with economist, Ed Kane, pooh, poohs the notion that the TARP money has been paid back and suggests that the American taxpayer are simply disinfranchized shareholders of the banks who always take the first 'hit' when management screws up.

Thoughts on Investing from Barry Ridholtz

Thoughts on Investing--from Barry Ridholtz

I'm here to tell you, politics and investing don't mix.

Yep, I thought I'd begin our conversation about investing by rocking your most cherished beliefs. Many of you are active in party politics, work for government or are involved in related fields. Well, I have some bad news: Your politics are killing you in the markets.

In my work, I use behavioral psychology, statistics, cognitive biases, history, data analysis, mathematics, brain physiology, even evolution to make better investing decisions. Indeed, these are all key to learning precisely what not to do. While making good decisions can help your portfolio, avoiding bad ones is even more important.

We humans make all the same mistakes, over and over again. It's how we are wired, the net result of evolution. That flight-or-fight response might have helped your ancestors deal with hungry saber-toothed tigers and territorial Cro Magnons, but it drives investors to make costly emotional decisions.

And it's no surprise.

Subscriber Alert-Taking advantage of opening weakness

SUBSCRIBER ALERT

10/28/11

Our Portfolios are taking advantage of the weak Market opening by Adding to these holdings:

In the High Yield Portfolio: Eli Lilly

In the Dividend Growth Portfolio: General Dynamics

In the Aggressive Growth Portfolio: Staples

Crony Capitalism Comes Home Today's Must Read

Crony Capitalism Comes Home

Whenever I write about Occupy Wall Street, some readers ask me if the protesters really are half-naked Communists aiming to bring down the American economic system when they’re not doing drugs or having sex in public.

The answer is no.

http://nyti.ms/seARta

All American Investor

Morning Journal--The evils of crony capitalism

News on Stocks in Our Portfolios

02:56 PM Abbott Labs (ABT +0.7%) spinoff Hospira (HSP +3.9%) gains after Bank of America ups the shares to buy on valuation, saying that most of the bad news surrounding its plant closures has already been priced into the shares, and the company has significant growth potential going forward.

11:29 AM Occidental Petroleum (OXY +7.6%) competes with the likes of Exxon (XOM), Conoco Phillips (COP) and Chevron (CVX), yet it offers one thing its huge rivals don't: growth. Its Q3 easily beat expectations, and Y/Y earnings and revenue growth was 46% and 22.6%, respectively. But shares trade at just 10x 2012 earnings estimates. Comment!

11:19 AM Exxon Mobil (XOM +0.3%) is back on top as the biggest U.S. public company, with its market cap now hitting $395B, after recording its third straight quarter of $10B-plus profit and a staggering $125B in revenue, which topped forecasts by more than $10B. Although oil-equivalent production fell 4%, analysts eye a more positive outlook by 2013 as current capital spending starts to pay off. Comment!

EMPLOYMENT COST INDEX - SEPTEMBER 2011

Compensation costs for civilian workers increased 0.3 percent, seasonally adjusted, for the 3-month period ending September 2011, the U.S. Bureau of Labor Statistics reported today.

Wages and salaries (which make up about 70 percent of compensation costs) increased 0.3 percent, and benefits (which make up the remaining 30 percent of compensation) were virtually unchanged at 0.1 percent.

All American Investor

@AllAmerInvest Obama Lost, Card Fee Doink, AAPL TV, Google Buying, Italy Insolvent

Big Banks Blink on New Card Fees

A month after Bank of America got pummeled by consumers and politicians for introducing plans for new debit-card fees, most other big U.S. banks are steering clear of imposing similar charges.

Following eight months of consumer testing, J.P. Morgan Chase & Co. has decided that it won't charge customers who use their debit cards to make purchases, according to a person familiar with the bank's plans. The New York bank's Chase retail unit is one of the largest U.S. consumer banks, with 26.5 million checking accounts and 5,300 branches.


Obama lost many donors from '08 presidential race
President Barack Obama has lost millions of dollars in support from former donors in Democratic strongholds and in districts that he won narrowly four years ago, according to an Associated Press analysis of the most recent federal campaign finance data.

Europe's Next Grand Plan

Video Apple's New TV "Will Totally Reinvent The Television Experience"

All American Investor

The Morning Call Positive, Si; Is it Enough? No

The Market

Technical

Amazing day. The indices (DJIA 12208, S&P 1284) went through all three stages of Titan III shot with almost no hesitation. Clearly, they left the 11719, 1230 level in the dust, remaining within their intermediate term trading range (10725-12919, 1101-1372). As I indicated previously, there is almost no resistance before prices reach the 12919, 1372 level.

Volume rose and breadth improved. The VIX plunged, finishing the day well outside of the upper zone of its current trading range in which it has been trading since mid August. Not to be repetitious, but this a plus for stocks.

GLD continued to work its way higher, closing safely within its intermediate term up trend.

Stephen Roach (Morgan Stanley) talks about fixing the US economy

A great discussion on income inequality by Richard Epstein

Watch Does U.S. Economic Inequality Have a Good Side? on PBS. See more from PBS NewsHour.

Walgreen (WAG) 2011 Review

Walgreen’s (WAG) is the second largest drugstore operator in the US, operating over 7600 drugstores. The company has grown earnings and dividends 13-14% annually over the past ten years, earning a 15-16% return on capital.

Like most retail firms, WAG experienced an earnings hiccup in 2009; but it should be able to sustain an above average earnings growth rate in the future because:

(1) the +60 year old population, which is the largest user of drugs, is growing faster than any other segment of the population; in addition, the improvement in the quality of drugs for the maintenance of medical conditions should drive enhance revenue growth,

Morning Journal Central bank monetary policies

News on Stocks in Our Portfolios--courtesy of Seeking Alpha

03:09 PM Wal-Mart (WMT +1.1%) will move its New York apparel office back home to Arkansas as it works to reduce costs and focus on more basic clothing. “We don’t need to be on Broadway to sell socks and underwear and T-shirts," the retailer says, noting that since the company returned to basic offerings, its sales trend in apparel is the strongest in two years. Comment!

12:14 PM An agreement to settle the dispute that would keep Walgreen (WAG -3.7%) stores in the Express Scripts (ESRX -12.9%) network would be "better for everyone," ESRX head George Paz says during a conference call after its earnings report, but "it looks less and less likely that's going to occur." Paz says his company has strong client support to move ahead without an agreement. Comment!

09:49 AM Best Buy (BBY), Wal-Mart (WMT) Staples (SPLS) and other retailers, which are counting on tablets and e-readers to boost Christmas sales, could miss out if a lot of consumers opt to buy directly from the manufacturers. Piper Jaffrey found that 71% of shoppers interested in a Fire planned to buy it via Amazon (AMZN). Comment!

@AllAmerInvest Deja Vu, Credit, Greek to Me, AMZN, Markets Explode UP, Perry Chickens, Super Connected Banks

Déjà vu: Today vs. March 2008

In a closer look below, the parallels between now and 2008 feels more like, well, déjà vu.

How gross and net CDS notionals really work
According to the DTCC, there is $75bn gross notional outstanding for CDS contracts referencing Greece. However, on a net basis this figure reduces substantially to $3.7bn.

Banks Bow to ‘Last Word’ From Merkel on Greek Debt
The world’s biggest banks bowed to what German Chancellor Angela Merkel called the “last word,” agreeing to write down their Greek government debt by half in the pivotal piece of the euro area’s bid to stem the financial crisis.

Amazon AWS might be a billion-dollar biz

All American Investor

The Morning Call Houston, we have a deal (sort of)

The Market

Technical

The indices (DJIA 11869, S&P 1242) recovered yesterday, closing back above the 11719, 1230 former resistance level as well as within their intermediate term trading range.

Volume was up slightly; breadth improved considerably. The VIX fell 7% and finished the day right on the lower boundary of the upper zone of its current trading range; once again, as long as it remains in the area, it is negative for stocks.

A check of our internal indicator shows that in a Universe of 165 stocks, 72 are trading above their comparable 11719, 1230 level, 56 are not and 37 are too close to call. This is a little weaker than Monday’s reading (77, 39, 49).

GLD continued to move up and remains within its intermediate term up trend.

Quality Systems Inc (QSII) 2011 Review

Quality Systems (QSII) Inc develops and markets healthcare information systems in the US; they include systems that automate medical and dental practices and networks of practices such as physician hospital and management services organizations, ambulatory care centers and medical and dental schools. 

In addition, QSII offers proprietary electronic medical records under the NexGen product name.

Its products include electronic health records, enterprise appointment scheduling, enterprise master patient index, NexGen image control systems, managed care server, electronic data interchange, system interfaces, Internet operability and patient-centric and provider-centric Wed portal solutions, NexGen Express for small practices, revenue cycle management services which include billing and collections services.

The company has grown profits at a 25%+ rate over the past five years and raised dividends from $.88 a share in 2005 to $1.25 a share in 2010. Return on equity has averaged 25%+ over the last five years.

The latest interview with Marc Faber (Gloom, Boom and Doom)

Morning Journal Bad government math + Subscriber Alert

Subscriber Alert

The stock price of Quality Systems (QSII) has traded below the upper boundary of its Buy Value Range. Accordingly, it is being Added to the Aggressive Growth Buy List. The Aggressive Growth Portfolio owns a full position in QSII, so no additional shares will be purchased.

News on Stocks in Our Portfolios

More earnings reports:

Reported Expected

BCR $1.62 $1.60
CNI 1.38 1.34
ITW 1.00 .98
3M 1.52 1.61
SHW 1.71 1.70
SIAL .96 .91
TSS .30 .28
UPS 1.05 1.05

@AllAmerInvest Goldman Go Nuclear, Confidence Doink, Trends in Income, F, BA, Boomers

Goldman Advises The Fed To Go Nuclear, And Set A Target For Nominal GDP

In his latest US Economics Analyst note, Goldman's Jan Hatzius offers up his suggestion for the next phase of Fed policy.
Read more

Confidence Falls Most Among High-Income Consumers
Consumers' short-term outlook, which had improved last month, reversed course in October. Those expecting business conditions to improve over the next six months decreased to 9.1 percent from 11.8 percent, while those expecting business conditions to worsen edged down to 21.5 percent from 21.9 percent.

Wall Street is Still Out of Control

The Morning Call Eurocrats Continue to Pound Their Pud

The Market

Technical

The indices (DJIA 11706, S&P 1229) suffered some serious whackage yesterday. However, they remain well within their intermediate term trading range.

On the other hand, they closed right on the former 11719, 1230 resistance level. Under the rules of our time and distance discipline, since the 11719, 1230 break was confirmed, this shouldn’t be a matter of concern. However, given the compressed time frame in which a potential reversal may be taking place as well as the very weak confirmation of our internal indicator, it is a tough call here as to whether yesterday was just a decline from an over bought condition or the Friday/Monday spike was another head fake.

Volume was flat; breadth suffered some serious damage. The VIX jumped back into the upper zone of its current trading range. That remains a cloud over the Market.

Yesterday’s redeeming feature was our GLD position which experienced a very substantial increase in price.

Bottom line: the question is, does 11548/11719, 1219/1230 range remain a battle ground for the bulls and bears or was yesterday just a retreat from an over bought condition? This Market has been so volatile and so schizophrenic, I am not going to venture a guess. But I don’t need to because we will know soon enough.

Confidence Falls Most Among High-Income Consumers

The Conference Board‘s consumer confidence index dropped to 39.8 in October, a level more commonly seen during recessions than recoveries that are more than two years old.

Economists had expected the index to rise slightly.

All American Investor

It’s All Connected: An Overview of the Euro Crisis

European leaders are meeting this week to deal with growing debt problems rattling investors worldwide. 

All American Investor

To get the really really big image of this go here.

Rick Perry's new flat tax plan (+ Video)

My Tax and Spending Reform Plan

Praxair (PX) 2011 Review

Praxair Inc (PX) is the world’s second largest supplier of industrial gases.

It produces atmospheric, process and specialty gases used to enhance performance applications in the metal fabrication, primary metal, chemical, healthcare, electronic, glass, pulp, paper and environmental industries. PX has grown its earnings and dividends at a 11-15% pace annually for the last 10 years and earns a return on equity of approximately 20%. The company suffered both lower volumes and currency difficulties in the recent economic malaise; however, earnings should rebound as a result of:

Morning Journal--What Occupy Wall Street has right and what it has wrong

Economics

This Week’s Data

Other

We don’t see many articles like (bullish on America); so I thought it worth including (and thinking about) (medium):
http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/8844646/World-power-swings-back-to-America.html

Here is another stab at explaining the declining median household income in the US (short):
http://mjperry.blogspot.com/2011/10/could-aging-population-explain-income.html

China’s PMI improves (short):
http://pragcap.com/chinese-pmi-shows-expansion-in-october

@AllAmerInvest HARP, the End of Cheap, Netflix Plunges 40, Worried?

FHFA, Fannie Mae and Freddie Mac Announce HARP Changes to Reach More Borrowers

The Federal Housing Finance Agency, with Fannie Mae and Freddie Mac (the Enterprises), today announced a series of changes to the Home Affordable Refinance Program (HARP) in an effort to attract more eligible borrowers who can benefit from refinancing their home mortgage. The program enhancements were developed at FHFA’s direction with input from lenders, mortgage insurers and other industry participants.

A few comments on the HARP Refinance Program changes

Off the Charts: In Apparel, Inflation Is Back
American apparel prices, which fell rapidly early in this century and then stabilized, have begun to rise. The top two charts show consumer prices for apparel compared with late-1991 levels, and annual changes in the index.
Also see The End of Cheap Chinese Goods

All American Investor

The Morning Call -- The EU continues to diddle itself, but fewer people care

The Market

Technical

The indices (DJIA 11913, S&P 1254) soared again yesterday. They remain within their intermediate term trading ranges (10725-12919, 1101-1372). In addition, they have fulfilled the ‘distance’ element of our time and distance discipline with respect to breaking above the 11719, 1230 resistance level. As I have noted several times, the next stop appears to be 12919, 1372.

Volume declined, as did breadth. The VIX declined out of the upper zone of its current trading range--which, if it continues, would be a positive for stocks.

Morning Journal-Can the EU bail out its banks?

Economics

This Week’s Data

The September Chicago Fed business index came in at -22 versus -59 recorded in August.
http://www.calculatedriskblog.com/2011/10/chicago-fed-economic-activity-improved.html

@AllAmerInvest CNBC Bonus Bucks, Class War, Another Downgrade, Housing, Pathological Procrastination

The Class War Has Begun

During the death throes of Herbert Hoover’s presidency in June 1932, desperate bands of men traveled to Washington and set up camp within view of the Capitol. The first contingent journeyed all the way from Portland, Oregon, but others soon converged from all over—alone, in groups, with families—until their main Hooverville on the Anacostia River’s fetid mudflats swelled to a population as high as 20,000.

US in possible downgrade encore shock
The “not-so-super” Deficit Commission is very unlikely to come up with a credible deficit reduction plan. The committee is more divided than the overall Congress.

CNBC Portfolio Challenge Bonus Bucks Answers

All American Investor

The Morning Call- Monday Morning Chartology

The Market

Technical

Monday Morning Chartology

The break above not only the 1219 but also the 1230 levels is pronounced. Our time and distance discipline is now operative, although a good deal of the ‘distance’ element of our discipline was achieved on Friday. Any kind of positive performance today will likely move the S&P over our normal ‘distance’ hurdle (circa 1%).

CNBC Portfolio Challenge Bonus Bucks Answers for Monday, October 24, 2011

1. Concerns have recently come to a head about the effectiveness of UK consumer product regulation, following a series of fires determined to have been caused by what kind of appliances?

ANSWER: Freezers

2. The Royal Bank of Scotland expects Asian stocks to fall by how much over the next three months?

ANSWER: 15-20%

3. How many Tweets per second were sent when Beyonce revealed her “baby bump” on August 28?

Answer: 8,868

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How many Tweets per second were sent when Beyonce revealed her “baby bump” on August 28?

3. How many Tweets per second were sent when Beyonce revealed her “baby bump” on August 28?

Answer: 8,868

The Royal Bank of Scotland expects Asian stocks to fall by how much over the next three months?

2. The Royal Bank of Scotland expects Asian stocks to fall by how much over the next three months?

ANSWER: 15-20%

Concerns have recently come to a head about the effectiveness of UK consumer product regulation, following a series of fires determined to have been caused by what kind of appliances?

1. Concerns have recently come to a head about the effectiveness of UK consumer product regulation, following a series of fires determined to have been caused by what kind of appliances?

ANSWER: Freezers

Money Supply, M2, Another New All Time High, Graph

M2 includes a broader set of financial assets held principally by households. M2 consists of M1 plus: (1) savings deposits (which include money market deposit accounts, or MMDAs); (2) small-denomination time deposits (time deposits in amounts of less than $100,000); and (3) balances in retail money market mutual funds (MMMFs).

Seasonally adjusted M2 is computed by summing savings deposits, small-denomination time deposits, and retail MMMFs, each seasonally adjusted separately, and adding this result to seasonally adjusted M1.

Another new all time high, $9621.4 billion.

All American Investor

Assets - Net Portfolio Holdings of Maiden Lane III LLC, Graph

On November 25, 2008, the FRBNY began extending credit to Maiden Lane III LLC, a company formed to purchase multi-sector collateralized debt obligations (CDOs) on which the Financial Products group of AIG had written credit default swap (CDS) contracts.

This line reports the fair value of the CDOs held by the LLC. Because the FRBNY is the primary beneficiary of the LLC, the assets and liabilities of the LLC are consolidated onto the balance sheet of the FRBNY.

All American Investor

Assets - Net Portfolio Holdings of Maiden Lane II, Graph

On December 12, 2008, FRBNY began extending credit to Maiden Lane II LLC, a company formed as part of a restructuring of the government's financial support to AIG, to purchase residential mortgage-backed security (RMBS) assets from AIG subsidiaries.

This line reports the fair value of the RMBS held by the LLC. Because the FRBNY is the primary beneficiary of the LLC, the assets and liabilities of the LLC are consolidated onto the books of the FRBNY.

All American Investor

Net Portfolio Holdings of Maiden Lane LLC, Graph

On June 26, 2008, the Federal Reserve Bank of New York (FRBNY) extended credit to Maiden Lane LLC under the authority of section 13(3) of the Federal Reserve Act.

This limited liability company was formed to acquire certain assets of Bear Stearns and to manage those assets through time to maximize repayment of the credit extended and to minimize disruption to financial markets.

All American Investor

The Closing Bell Will Europe get it right?

Statistical Summary

Current Economic Forecast

2011

Real Growth in Gross Domestic Product: +1.5- +2.5%
Inflation: 2-3 %
Growth in Corporate Profits: 7-12%

2012

Real Growth in Gross Domestic Product: +1.5- +2.5%
Inflation: 2-3 %
Growth in Corporate Profits: 0-10%


Current Market Forecast

Thoughts on Investing--from the Capital Spectator

Thoughts on Investing--from the Capital Spectator

Predicting is hard--especially about the future, runs the old joke. But there’s no escaping forecasting in finance and economics. Even a passive investor has an assumption--a forecast! If you own an S&P 500 index fund, you’re assuming that you’ll earn an equity risk premium. Where did you get that idea? There are a thousand possibilities for thinking positively, but the key point here is that you’re anticipating a premium will come your way simply by holding risky assets.

Forecasting is unavoidable and hazardous, and so you can’t spend too much time thinking about this challenge. Fortunately, there’s no shortage of literature for helping us improve our efforts on this front. That includes a new series of essays on the topic at Cato Unbound.

@AllAmerInvest Platinum, Lipstick on Pig, Buy a Visa, Tax Cut, CNBC, New Gmail

Foreigners' Sweetener: Buy House, Get a Visa 

The reeling housing market has come to this: To shore it up, two Senators are preparing to introduce a bipartisan bill Thursday that would give residence visas to foreigners who spend at least $500,000 to buy houses in the U.S.
http://on.wsj.com/qEyO2u Occupy 

Wall Street's Top Priority Should Be to Kill the Bush Tax
Cuts http://bit.ly/punZ0z

New Gmail design (Video)
http://bit.ly/oRm1zG

Is the SEC colluding with banks on CDO prosecutions?
http://reut.rs/oq14hV

Jubilation and hard work ahead for Libya
 http://bit.ly/oF0tjC

CNBC Portfolio Challenge Bonus Bucks Answers 
 http://bit.ly/qBkcL1

 All American Investor

 Herd analysts are putting lipstick on every pig 
 http://bit.ly/nQGIYU

Morning Journal, The ECRI index vs recent positive news

News on Stocks in Our Portfolios

More earnings reports:

Reported Expected

MSFT $.68 $.68
ALTR .57 .59
SLB .98 1.01
LLY 1.13 1.13
NUE .57 .51
PM 1.37 1.23

Economics

The Morning Call--The eurocrats are giving me a headache

The Market

Technical

The Averages (DJIA 11541, S&P 1215) gave us another roller coaster day. They finished the day well within their intermediate term trading ranges (10725-12919, 1101-1372); however, they remained below the 11548, 1219 resistance level.

Volume was down (back to the old pattern); breadth was up. The VIX was up fractionally, closing within the upper zone of its current trading range (negative for stocks).

GLD was off and finished below the lower boundary of its intermediate term up trend. Checking with traders, I could find no explanation for the sell off; nevertheless, our time and distance discipline is now operative.

Bottom line: my focus is on (1) the bull/bear battle over the 11548/11719, 1219/1230 resistance zone. As I have noted, an upside break likely means a sprint to the 12919/1372 area while failure to do so suggests additional downside.

The Shanghai indicator (short):
http://advisorperspectives.com/dshort/guest/Chris-Kimble-111020-Shanghai-Indicator.php

Fundamental

CNBC Portfolio Challenge Bonus Bucks Answers for Friday, October 21, 2011

1. The Marco Polo Pure China Fund is down by how much year-to-date?

ANSWER: 25%

2. What did the unofficial U.S. “misery index” do for September?

ANSWER: Rose to 13.0, highest since 1983

3. Miner Anglo American said on Thursday that its third-quarter copper production dropped by 9 percent. Where is Anglo American's flagship Los Bronces copper mine?

Answer: Chile

The Marco Polo Pure China Fund is down by how much year-to-date?

1. The Marco Polo Pure China Fund is down by how much year-to-date?

ANSWER: 25%

CNBC Bonus Bucks Answers for Friday, October 21, 2011 and CNBC Million Dollar Portfolio Challenge

Becton Dickinson (BDX) 2001 Review

Becton Dickinson (BDX) produces a wide range of medical devices as well as products for the collection and transport of diagnostic specimens, instruments for analysis and testing for infectious diseases and research and clinical tools for the study of cells.

The company has grown profits and dividends at a 13-15% annual pace over the last 10 years earning a 20%+ rate of return on equity.

The company should sustain its growth via:

(1) growth of safety needle-free products. BDX is a world leader in this market which is growing at a 12% annual rate globally. Recently, the European Union adopted safety requirements that will have positive impact on needle sales in Europe,

(2) the safety products are sold at premium prices yet have a very low cost of production, thereby improving margins,

(3) the equally attractive rate of growth of the remainder of its well diversified product line [diabetes care, surgical equipment, ophthalmic systems, diagnostic systems and immunocytometric systems],

(4) a newly instituted cost containment program,

(5) strong cash flow allows a continuing stock buy back program,

(6) international expansion.

USUAL WEEKLY EARNINGS OF WAGE AND SALARY WORKERS THIRD QUARTER 2011

Median weekly earnings of the nation's 101.4 million full-time wage and salary workers were $753 in the third quarter of 2011 (not seasonally adjusted), the U.S. Bureau of Labor Statistics reported today.

This was 1.8 percent higher than a year earlier, compared with a gain of 3.8 percent in the Consumer Price Index for All Urban Consumers (CPI-U) over the same period.

All American Investor

@AllAmerInvest Amazon Playing to Win, Groupon IPO, Yahoo deal, Jobless Report, Buy a House Get a Visa

Amazon (AMZN) Brings Big Guns To The Publishing War

Amazon is playing to win in the ebook platform wars, and isn't afraid of pulling out the big guns. It is securing exclusive deals. It is building its own publishing house. It is doing everything to increase the number of available titles (see chart).

We believe the winning Kindle platform is likely to have network effects: the more titles it will have, the more consumers it will have, which will lead more titles to the platform and so on, in a virtuous cycle. This is the right move on Amazon's part. It will be fascinating to see what happens when Amazon get serious about streaming video.

Number of ebooks available for sale on US Kindle store

http://read.bi/qnDOIj

Unemployment Insurance Weekly Claims Detailed Report, 403,000
http://bit.ly/pko7o3


Groupon cutting back size of IPO
http://nyti.ms/oM7TYh

Yahoo (YHOO) may get bid from Microsoft
http://on.wsj.com/n5in3l

CNBC Million Dollar Portfolio Challenge Bonus Bucks Answers
http://bit.ly/q8ca5B

Morning Journal--Much discussion on median household income

News on Stocks in Our Portfolios

More earnings reports:

Reported Expected

KMP $.44 $.47
APH .81 .78
ABT 1.18 1.17
UTX 1.47 1.44

CVX is buying back $5 billion in stock.

Unemployment Insurance Weekly Claims Detailed Report, 403,000

In the week ending October 15, the advance figure for seasonally adjusted initial claims was 403,000, a decrease of 6,000 from the previous week's revised figure of 409,000.

The 4-week moving average was 403,000, a decrease of 6,250 from the previous week's revised average of 409,250.

All American Investor

The advance seasonally adjusted insured unemployment rate was 2.9 percent for the week ending October 8, unchanged from the prior week's unrevised rate of 2.9 percent.

The advance number for seasonally adjusted insured unemployment during the week ending October 8 was 3,719,000, an increase of 25,000 from the preceding week's revised level of 3,694,000.

The 4-week moving average was 3,722,500, a decrease of 7,500 from the preceding week's revised average of 3,730,000.

Morning Call Small wonder investors are confused + Subscriber Alert

The Market

Technical

The indices (DJIA 11504, S&P 1209) sold off yesterday, closing for a second time below the 11548, 1219 ‘higher low’ resistance level but remaining well within their intermediate term trading ranges (10725-12919, 1101-1372). The bulls and bears are clearly duking it out at the 11548, 1219 level.

Volume decline (holding to the very recent and very positive trend of low volume on down days and higher volume on up days); breadth was off, though the flow of funds indicator continues to demonstrate strength. The VIX spike again (9%) leaving it within the upper zone of its current trading range--a negative for stocks.

Real Unemployed Still 15.7 Million

Total unemployed, plus those marginally attached, plus those working part time for economic reasons.

In September, about 2.5 million persons were marginally attached to the labor force, about the same as a year earlier. (The data are not seasonally adjusted.) These individuals were not in the labor force, wanted and were available for work, and had looked for a job sometime in the prior 12 months. They were not counted as unemployed because they had not searched for work in the 4 weeks preceding the survey. Discouraged workers are persons not currently looking for work because they believe no jobs are available for them.

The number of long term unemployed (those jobless for 27 weeks and over) was 6.2 million in September. These individuals accounted for 44.6 percent of the unemployed.

All American Investor

CNBC Million Dollar Portfolio Challenge Bonus Bucks Answers for Thursday, October 20, 2011

CNBC Bonus Bucks Answers for Thursday, October 20, 2011 and CNBC Million Dollar Portfolio Challenge

1. Which of Rupert Murdoch's four children once ran a television production company called Shine that was acquired by Murdoch's News Corp. in April?

ANSWER: Elisabeth

2. According to CNBC.com’s table of earnings surprises, how did Abbott Laboratories’ most recently reported earnings per share number compare to the consensus estimate?

ANSWER: EPS was one cent above the estimate

3. Which publicly listed company has the world's largest workforce?

Answer: Wal-Mart

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Which of Rupert Murdoch's four children once ran a television production company called Shine that was acquired by Murdoch's News Corp. in April?

1. Which of Rupert Murdoch's four children once ran a television production company called Shine that was acquired by Murdoch's News Corp. in April?

ANSWER: Elisabeth

CNBC Bonus Bucks Answers for Thursday, October 20, 2011 and CNBC Million Dollar Portfolio Challenge

According to CNBC.com’s table of earnings surprises, how did Abbott Laboratories’ most recently reported earnings per share number compare to the consensus estimate?

2. According to CNBC.com’s table of earnings surprises, how did Abbott Laboratories’ most recently reported earnings per share number compare to the consensus estimate?

ANSWER: EPS was one cent above the estimate

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Which publicly listed company has the world's largest workforce?

3. Which publicly listed company has the world's largest workforce?

Answer: Wal-Mart

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Wednesday afternoon humor from Conan O'Brien

Phillip Morris Int'l (PM) 2011 Review

Philip Morris International (PM ) is a spin off from Altria. It manufacturers, sells and distributes a wide range of tobacco products in markets outside the US.

Operating profits from this segment of the old Altria business grew at an 11% annual rate. PM expects earnings to grow at a 10-11% rate in the future; given its commitment to payout 65% of profits, the dividend growth should match growth of earnings. The company is expected to earn a return on equity in the 50-60% range.

Management believes earnings will advance based on:

(1) strengthening its brand through product innovations such as smoother taste, new tobacco blends and innovative packaging which provides pricing power,

(2) price increases,

(3) management’s focus on cost controls, productivity gains and manufacturing efficiencies,

(4) strong cash flows allow for an ongoing major stock buy back program

Martin Feldstein on Greece

If you don't see the video go here.

Unwrapping Ice Cream Sandwich on the Galaxy Nexus

Beaming a video with a single tap or unlocking a device with only a smile sounds like science fiction. Now, you can actually do these things (and more) with a phone that fits in the palm of your hand.

Wednesday morning in Hong Kong—together with Samsung—we unveiled Galaxy Nexus, the first phone designed for the latest release of Android 4.0, also known as Ice Cream Sandwich.

9-9-9: The Most Massively Regressive Redistribution of Taxes Ever Seriously Considered

Conclusion: to implement the 9-9-9 plan would truly be the most dramatic and regressive shifting of the tax burden in the history of our nation

Morning Journal--Why our deficits are different

News on Stocks in Our Portfolios

Earnings reports:

Reported Expected

LLTC $.47 $.50
GPC .97 .94
JNJ 1.24 1.21
KO 1.03 1.02
GWW 2.51 2.34

Economics

This Week’s Data

The International Council of Shopping Centers reported weekly sales of major retailers up 0.1% versus the prior week and up 3.6% versus the comparable period a year ago; Redbook Research reported month to date retail chain store sales down 0.6% versus the similar period a month ago but up 4.6% on a year over year basis.

@AllAmerInvest Android vs iPhone, AAPL, RAZR, Housing Starts, Cooperman, Meeker, Net Interest Margins, CNBC

Android vs iPhone: Units Sold In First 11 Quarters Since iPhone Launch

http://read.bi/qhnRLd

Check Out How AAPL  Store Revenue Collapsed
http://read.bi/p9xPCd

Leon Cooperman Names 14 Reasons Why We Won't Experience A 2008 Type Decline
http://read.bi/rcHLFm

Housing Starts Smash Expectations With 15% Jump

Privately owned housing starts in September were at a seasonally adjusted annual rate of 658,000. This is 15.0 percent (±13.7%) abovethe revised August estimate of 572,000 and is 10.2 percent (±13.3%)* above the September 2010 rate of 597,000.

All American Investor

Single-family housing starts in September were at a rate of 425,000; this is 1.7 percent (±9.4%)* above the revised August figure of 418,000. The September rate for units in buildings with five units or more was 227,000.

Before the Bell--Deal or no deal?

The Market

Technical

The indices (DJIA 11577, S&P 1225) bounced powerfully yesterday. They successfully challenged that ‘lower high’ (11548, 1219) that I have been focused on for the second time and remain within their intermediate term up trading range (10725-12919, 1101-1372).

The big kahuna now is the 11719, 1230 level. If the Averages can penetrate and confirm a break above those levels, there is no visible resistance until prices reach the top of the current trading range (12919, 1372).

Positively, volume was up noticeably (versus being lower in Monday’s sell off). If a pattern can be established of high volume on up days and low volume of down days, that would be an enormous plus for stocks.

Breadth was strong. The VIX was off, but remained well within that upper zone of its current trading range--a negative for stocks.

Absolutely must see video of Nassim Taleb (Black Swan) discussing the banks and Washington

China's economy is expected to grow at what rate in 2012, according to the China Market Research Group?

CNBC Portfolio Challenge Bonus Bucks Answers for Wednesday, October 19, 2011 and CNBC Million Dollar Portfolio Challenge

1. China's economy is expected to grow at what rate in 2012, according to the China Market Research Group?

ANSWER: 8.5%

CNBC Bonus Bucks Answers for Wednesday, October 19, 2011

CNBC Portfolio Challenge Bonus Bucks Answers for Wednesday, October 19, 2011 and CNBC Million Dollar Portfolio Challenge

1. China's economy is expected to grow at what rate in 2012, according to the China Market Research Group?

ANSWER: 8.5%

2. Which college dropout went on to create on of the largest social networking websites with an estimated worth of $100 billion?

ANSWER: Mark Zuckerberg

3. According to a CNBC.com analysis, compensation for financial sector CEOs is what percentage of the companies’ earnings before taxes?

Answer: 0.21%

According to a CNBC.com analysis, compensation for financial sector CEOs is what percentage of the companies’ earnings before taxes?

3. According to a CNBC.com analysis, compensation for financial sector CEOs is what percentage of the companies’ earnings before taxes?

Answer: 0.21%

Which college dropout went on to create on of the largest social networking websites with an estimated worth of $100 billion?

CNBC Portfolio Challenge Bonus Bucks Answers for Wednesday, October 19, 2011 and CNBC Million Dollar Portfolio Challenge

2. Which college dropout went on to create on of the largest social networking websites with an estimated worth of $100 billion?

ANSWER: Mark Zuckerberg

Home Depot (HD) 2011 Review

Home Depot (HD) operates a chain of retail building supply/home improvement stores in the US, Canada, Mexico and China.

The company has grown profits and dividends at a 7-20% pace over the past 10 years earning 14%+ return on equity. HD experienced difficulties in the recent economic downturn; however the company has taken steps that should lead to improvement in its profitability.

Morning Journal 10/18/11

News on Stocks in Our Portfolios

Boeing sees more Dreamliner cancellations. One day after China Eastern scrapped 24 Dreamliner orders, Boeing (BA) warns of more cancellations. Chinese airlines often act in tandem, and the China Eastern cancellation likely reflects a belief "the recovery in the United States and Europe won't come soon." Also today, China Southern Airlines (ZNH) said the delivery of its first Dreamliner will likely be delayed by at least another seven months, but that it remains committed to its orders despite frustration over the delays.

Chevron coming soon to an Asia-Pacific drill site near you. Chevron (CVX) plans to start its first offshore southern China drill before year-end, following in the path of Husky (HUSKF.PK) and BG Group (BRGYY.PK) who have found gas reserves there recently. Chevron is betting heavily on natural gas in the Asian-Pacific - where energy demand growth is expected to out-do the U.S. and euro-zone.
General Mills (GIS -0.4%) faces a class action lawsuit in California alleging its line of popular fruit snacks advertised as nutritious are actually an "elaborate hoax" on parents consisting mostly of sugars, additives, and dye. The company says it stands behind the accuracy of its labeling on products.

@AllAmerInvest Electric DeLorean, Amerislump, Economic Lies, Gold Doink, PPI, Bonus Bucks, Cars Talk, Siri Sings

Electric DeLorean: First Drive

This weekend I drove the Electric DeLorean. I'm not laughing anymore.

http://jalo.ps/q3CR56

The Producer Price Index for finished goods rose 0.8 percent in September
http://1.usa.gov/poAyUp

THE SEVEN BIGGEST ECONOMIC LIES
http://bit.ly/pXDbOr

The Amerislump  Is Upon Us
http://bit.ly/o4dYd1

Bank of America, Goldman Sachs Add to Earnings Disappointment
http://on.wsj.com/o5KB74

All American Investor

Bonus Bucks Answers
http://bit.ly/mSHmq0

Before the Bell 10/18/11

The Market

Technical

In yesterday’s pin action the Averages (DJIA 11397, S&P 1200) reversed the positive steps on Friday among them trading back below the first ‘lower high’ (11548, 1219). Nevertheless, they remain well within their intermediate term trading ranges (10725-12919, 1101-1372).

Volume was light (versus high volume in the typical sell off of late); breadth was also weak. The VIX soared 18%, trading back into the upper zone of its current trading range. This was not positive for stocks.

GLD was down fractionally, remaining within its intermediate term up trend.

Bottom line: in last weekend’s Closing Bell, I opined that a retreat from the 11719, 1230 would suggest that the recent rally had exhausted itself. It would not be unreasonable to expect more down side from here which I think will offer a buying opportunity.

Fundamental

CNBC Portfolio Challenge Bonus Bucks Answers for Tuesday, October 18, 2011

1. How did real estate agent Bret Parsons characterize the decor of actor Nicolas Cage's foreclosed mansion in Bel Air, California?

ANSWER: "Frat house bordello"

2. What word did analyst Anthony DiClemente use on CNBC to describe Google's cash hoard?

ANSWER: "Astonishing"

3. The Ernst & Young ITEM Club, which bases its quarterly growth report on finance ministry models, cut its forecast for the UK gross domestic product increase. What is the ITEM Club's new prediction for UK growth for this year?

Answer: 0.9% growth

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The Ernst & Young ITEM Club, which bases its quarterly growth report on finance ministry models, cut its forecast for the UK gross domestic product increase. What is the ITEM Club's new prediction for UK growth for this year?

3. The Ernst & Young ITEM Club, which bases its quarterly growth report on finance ministry models, cut its forecast for the UK gross domestic product increase. What is the ITEM Club's new prediction for UK growth for this year?

Answer: 0.9% growth

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What word did analyst Anthony DiClemente use on CNBC to describe Google's cash hoard?

2. What word did analyst Anthony DiClemente use on CNBC to describe Google's cash hoard?

ANSWER: "Astonishing"

CNBC Portfolio Challenge Bonus Bucks Answers for Tuesday, October 18, 2011 and CNBC Million Dollar Portfolio Challenge

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How did real estate agent Bret Parsons characterize the decor of actor Nicolas Cage's foreclosed mansion in Bel Air, California?

1. How did real estate agent Bret Parsons characterize the decor of actor Nicolas Cage's foreclosed mansion in Bel Air, California?

ANSWER: "Frat house bordello"

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Morning Journal Stocks We Watch, Kinder Morgan, Operation Twist

News on Stocks in Our Portfolios

Kinder Morgan to buy El Paso in $38B deal. Companies continue to make massive bets on the fast-growing market for natural gas, with Kinder Morgan (KMI) announcing a blockbuster deal to buy fellow pipeline company El Paso (EP) for $21B in cash and shares, or over $38B including debt.

The offer of $26.87 a share represents a 37% premium over El Paso's close on Friday. The acquisition follows multi-billion dollar transactions in the transport and production sectors, and will create a company that owns 80,000 miles of pipe stretching from coast to coast. Such coverage could allow the new entity to demand higher fees from producers, which could lead to increased energy prices for consumers.

Economics

@AllAmerInvest Doink, Empire New York, Euro Zone, CNBC, Gold, Rimm, Nike

Stocks: Investors on edge over Europe, earnings

U.S. stocks headed for a weak open Monday as relatively strong earnings from Citigroup and Wells Fargo failed to eliminate persistent jitters over Europe's debt crisis.

http://cnnmon.ie/o9Uoya

The Federal Reserve Bank of New York’s general economic index rose to minus 8.5 from minus 8.8 in September. Economists projected an improvement to minus 4, based on the median of 53 forecasts in a Bloomberg News survey.
http://bloom.bg/q0XIoB


Euro zone eyes yet another "comprehensive strategy"
http://reut.rs/n6nQHo

All American Investor

CNBC Portfolio Challenge Bonus Bucks Answers for Monday, October 17, 2011

Before the Bell, Market Internals, Charts, Volatility, GLD Fear

The Market

Technical

What some of the measures of internal Market strength are showing (medium):
http://bit.ly/otYVia

Percentage of stocks above their 50 day moving average (charts):
http://www.bespokeinvest.com/thinkbig/2011/10/14/breadth-explodes-higher.html

CNBC Portfolio Challenge Bonus Bucks Answers for Monday, October 17, 2011

1. The seventh most emptiest US City is

ANSWER: Dayton, OH

2. The domestic gross of the remake of Conan The Barbarian was

ANSWER: 21.3 million

3. Property prices in Beijing fell by how much in August, according to Daiwa Capital Markets.

Answer: 2.3%

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Property prices in Beijing fell by how much in August, according to Daiwa Capital Markets

3. Property prices in Beijing fell by how much in August, according to Daiwa Capital Markets.

Answer: 2.3%

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CNBC Portfolio Challenge Bonus Bucks Answers for Monday, October 17, 2011 and CNBC Million Dollar Portfolio Challenge

The domestic gross of the remake of Conan The Barbarian was

2. The domestic gross of the remake of Conan The Barbarian was

ANSWER: 21.3 million

Remakes That Made Less Than the Originals

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CNBC Portfolio Challenge Bonus Bucks Answers for Monday, October 17, 2011 and CNBC Million Dollar Portfolio Challenge

The seventh most emptiest US City is

1. The seventh most emptiest US City is

ANSWER: Dayton, OH

The 10 Emptiest US Cities

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CNBC Portfolio Challenge Bonus Bucks Answers for Monday, October 17, 2011 and CNBC Million Dollar Portfolio Challenge

Thoughts on Investing 10/14/11

Thoughts on Investing--from Barry Ridholtz

The earthquake, tsunami and near nuclear meltdown in Japan caused world financial markets to briefly wobble — and my phones to light up. Every time we have a major financial crisis, I get the same calls from clients, media and friends: “What should investors be doing now?”

My answer is always the same: Follow your investment strategy. Stick to your discipline, including exit plans.

What is that? You don’t have a strategy or any sort of exit plan? Well then, it’s time for you to get one. Now.

The Closing Bell 10/15/11

Statistical Summary

Current Economic Forecast


2011

Real Growth in Gross Domestic Product: +1.5- +2.5%
Inflation: 2-3 %
Growth in Corporate Profits: 7-12%

2012

Real Growth in Gross Domestic Product: +1.5- +2.5%
Inflation: 2-3 %
Growth in Corporate Profits: 0-10%

M2, Money Supply, Still Rising Fast, Graph, 1015

M2 includes a broader set of financial assets held principally by households. M2 consists of M1 plus: (1) savings deposits (which include money market deposit accounts, or MMDAs); (2) small-denomination time deposits (time deposits in amounts of less than $100,000); and (3) balances in retail money market mutual funds (MMMFs).

Seasonally adjusted M2 is computed by summing savings deposits, small-denomination time deposits, and retail MMMFs, each seasonally adjusted separately, and adding this result to seasonally adjusted M1.

All American Investor

Net Free or Borrowed Reserves of Depository Institutions (Graph, 1015)

H.3 Aggregate Reserves of Depository Institutions and the Monetary Base

All American Investor

The latest from Wilbur Ross

Balchem (BCPC) 2011 Review

Balchem Corp. (BCPC) provides specialty ingredients and products for the food, nutritional, feed, pharmaceutical and medical sterilization industries including (1) specialty gases used to sterilize medical devices and to produce specialty herbicides, fertilizers and pharmaceuticals, (2) solutions for microencapsulation, granulation and agglomeration for applications in food, pharmaceutical and nutritional ingredients and (3) nutritional products for animals.

BCPC has grown profits and dividends at a 20%+ rate over the last five years earning a 16-20% return on equity.

The company has been able to weather the recent economic down turn and should continue to grow as the rising standard of living throughout the third and emerging worlds lead to improved diet and healthcare.

BCPC is rated A by Value Line, has a 1% debt to equity ratio and its stock yields .4%.

Great interview with TIny Tim (Geithner)

U.S. IMPORT AND EXPORT PRICE INDEXES - SEPTEMBER 2011

U.S. import prices rose 0.3 percent in September, the U.S. Bureau of Labor Statistics reported today.

Over the past five months, import prices have shown little net change. Export prices increased 0.4 percent in September after advancing 0.5 percent the previous month.

All American Investor

@AllAmerInvest AAPL, iPhone4S, Roubini, Bonus Bucks, Shh

What's Inside The iPhone 4S?

Apple Could Sell 4 Million Phones This Weekend
http://read.bi/nluaup

Roubini: The Instability of Inequality
http://bit.ly/n82csq

All American Investor

CNBC Bonus Bucks Answers for Friday, October 14, 2011
http://bit.ly/ovdgjj

Morning Journal 10/14/11

News on Stocks in Our Portfolios

Fastenal reported third quarter earnings per share of $.33, in line with expectations.

Economics

This Week’s Data

September retail sales rose 1.1% versus expectations of an increase of 0.7%; ex autos, sales were up 0.6% versus estimates of up 0.3%--at first blush, very positive numbers and nothing indicative of a recession.

Before the Bell 10/14/11

The Market

Technical

The indices (DJIA 11476, S&P 1203) traded off yesterday, though I was a bit surprised by how little. They remain within their intermediate term trading ranges (10725-12919, 1101-1372); and despite a return of some volatility, neither even attempted to challenge the ‘lower high’ level (11548, 1219) that I mentioned yesterday.

Volume fell; breadth weakened. The VIX was off fractionally; so it again finished the day inside the upper zone of its current trading range.

GLD declined but remains well within its intermediate term up trend.

Bottom line: further weakness would not be surprising just because stocks have run so far so fast. Indeed, as I noted above, I had expected a bigger drop yesterday than we got. Nevertheless, given the seasonal bias of October, lower prices are likely.

Bullish sentiment continues to rise (short):
http://www.bespokeinvest.com/thinkbig/2011/10/13/investor-sentiment-rises-for-third-straight-week.html

CNBC Portfolio Challenge Bonus Bucks Answers for Friday, October 14, 2011

1. In the third quarter of this year there were 284 Initial Public Offerings. The Asia Pacific region accounted for what percentage of these IPOs according to Ernst & Young?

ANSWER: 57%

2. The UK trade deficit for August, which analysts expected to swell to 8.8 billion pounds, ended up contracting instead. What did it fall to?

ANSWER: 7.768 billion pounds

3. For what company is Anna Anisimova the “daughter heir-apparent?

Answer: Coalco International

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CNBC Portfolio Challenge Bonus Bucks Answers for Friday, October 14, 2011 and CNBC Million Dollar Portfolio Challenge

For what company is Anna Anisimova the “daughter heir-apparent?

3. For what company is Anna Anisimova the “daughter heir-apparent?

Answer: Coalco International

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CNBC Portfolio Challenge Bonus Bucks Answers for Friday, October 14, 2011 and CNBC Million Dollar Portfolio Challenge

The UK trade deficit for August, which analysts expected to swell to 8.8 billion pounds, ended up contracting instead. What did it fall to?

2. The UK trade deficit for August, which analysts expected to swell to 8.8 billion pounds, ended up contracting instead. What did it fall to?

ANSWER: 7.768 billion pounds

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CNBC Portfolio Challenge Bonus Bucks Answers for Friday, October 14, 2011 and CNBC Million Dollar Portfolio Challenge