How to Boost Your Returns With ONE Secret ETF Strategy

[Thierry Martin]

The "Chart of the Day" is Coca Cola Femsa (KOF), which showed up on Friday's Barchart "All Time High" list. Coca Cola Femsa on Friday rallied to a new all-time high of $117.90 and closed up 1.70%. TrendSpotter has been long since April 20 at $106.59. In recent news on the stock, the Bill & Melinda Gates Foundation in Q1 had a 6.2 million share position in Coca Cola Femsa. Coca Cola Femsa, with a market cap of $21 billion, produces, markets and distributes soft drinks throughout the metropolitan area of Mexico City, in Southeastern Mexico and in metropolitan Buenos Aires, Argentina.

To access recent archived Chart of the Day reports, please go to:
http://www.barchart.com/headlines/se...=BC&series=COD

[Thierry Martin]

Chart of the Day (June 4, 2012) - AIG in a nested pattern (AIG)

[Thierry Martin]

Random Thoughts

Referring the chart below, notice that the S&P made multi-year highs and subsequently stalled short of those highs (1). It then sold off hard (2) and pulled back (3). This action set up a variation of a pattern I have dubbed a "First Thrust." See the article above for more details. On Friday, we saw nice follow through out of this pattern.

I use the world "nice" in terms of my positing and technical analysis. I'm not happy that the market went down. I'd prefer if it just climbed steadily for years and years. Unfortunately, unless you're Bill Clinton, what is, is. So, I am happy that the charts worked. Forget about your bias and what you hope will happen and just follow the charts. What is, is.

As this market correction (which is now a bona fide slide) began to unfold. I wrote and spoke (see webcast archives) a lot about the ebb and flow of using money management and the charts to adjust your portfolio. Your longs begin to stop out and you start establishing shorts. You don't make big picture predictions. You just take things one day at a time and let it all unfold. And, you end up net short in a down market.

So what do we do? Take partial profits on existing shorts as offered and trail your stops lower. Further, honor your stops on any remaining longs. Since the methodology is pullback in nature and the market /most stocks/sectors are making new multi-month lows, they aren't a lot of new setups. This is probably a good thing since the market is becoming oversold. Therefore, manage what you have and wait for the next cycle.

Futures are flat to firm pre-market.

[Thierry Martin]

We are watching Water Utilities ? American Water Works Company (AWK).
Please visit diagstocks.com for more details.

[Thierry Martin]

As we all know by now, the problems in the European Union are starting to increase by the moment. Many investors are now talking about a complete breakup of the European Union as we know it. The debt problems in all of these nations is simply becoming to much to for the European Central Bank (ECB) and the International Monetary Fund (IMF) to handle. In other words, debt can only bail out debt for so long. Has the debt society as we know it finally come to an end?

In this weeks report, we will examine three of most important European banking stocks in the stocks market. After all, the problems in Europe and around the world are really a banking crisis and not just a sovereign debt crisis. Austerity measures in Europe have been implemented and the banks continue to struggle. It appears that the one way the European banks could be saved in Europe is by the ECB printing money. However, at this time, the ECB can not print money. Therefore, we shall see if that rule is changed by the end of the year. I suspect in time it will, making the ECB more like the Federal Reserve.
Deutsche Bank AG (USA) (NYSEB) is a Germany-based global investment bank. This stock plunged lower by 3.10 percent on Friday, June 1, 2012. The stock will have some short term daily chart support around the $28.00 area, this is the weekly chart low from September 12, 2011. The weekly chart could be signaling a decline to the $19.00 area if this downside momentum continues over the next few months. Either way, unless some surprise resolution arises out of the European Union in the near term DB stock looks to be headed lower.

[Thierry Martin]

Weaker economic data continued to push the bearish momentum forward; May nonfarm payrolls' (69k vs. 165k est.) disappointed the market by adding the least job in the last 12 month periods. Furthermore, consumer confidence (64.9 vs. 70.0 est.), Chicago PMI (52.7% vs. 56.8% est.), and the ISM manufacturing index (53.5% vs. 54.0% est.) all showed below estimate readings throughout this past week. These pessimistic releases drove the U.S. bond market to trade at record high that the 10yr is currently trading below 1.5%. But how low can yield goes? While this low rates environment may least a lot longer given from the poor economic condition. However, from the technical perspective, it may be ready for a bounce that the 10-yr is approaching to its multi-decade support. Looking forward next week, stocks are likely to continue to stay volatility with this downtrend momentum, and the ISM service will be the key mover for bonds.

Technical Highlights:
? Stocks turned underwater on year-to-date basis; bonds soared to record high.
? The NYSE composite failed to make a bullish turn on its 200day moving average; Both the S&P and the NASDAQ composite are now trading in the bearish territory (below 200day SMA).
? Market decline led by abnormal negative performances on offensive stocks; Historical data continued to point the market lower.
? While the 10-yr Treasury yield traded at record low, it is also approaching to its multi-decade support (see chart on page 6).

read more at...

[Thierry Martin]

This week copper broke the trenline from back in 2009. This an incredibly bad sign for the broader economy and stocks if copper cannot recapture this trendline in the immediate future.

[Thierry Martin]

Color sucks.

[Thierry Martin]

The dollar printed a key reversal on Friday, which was day 22 of the dollar?s daily cycle.

[Thierry Martin]

Need some advice about small energy companies. SD, KOG etc, also CHK for natural gas play. Any idea which of these is the better play. Feel free to include others that might be interesting.