-- Posted Tuesday, 21 March 2006 | Digg This Article | Source: GoldSeek.com

Rick’s Picks

Tuesday, March 21, 2005

For investors who’d rather be smart than lucky 

Will the Dow Industrials surpass 11350, a threshold that I’ve characterized as crucial to the bullish case for the intermediate term? If Monday’s turgid action is any indication, the Indoos will get there eventually, but probably later rather than sooner, one mincing step at a time. Usually the opening minutes of a new week provide Da Boyz with an excellent opportunity to mount a short squeeze. Yesterday, though, their tried-and-true ruse failed just 15 minutes into the session, presumably frustrating all of those who thrill to pay top dollar for whatever someone else might be selling. Stocks went flat for the remainder of the day, the DJIA having gone no higher than 11308.39.

Check out the chart above if you want to see how flat. It shows a second-guessing game at its trance-inducing best, played out against a backdrop of falling oil prices, bird flu on-the-wing, and the revelation from Helicopter Ben that a glut of world saving might be responsible for today’s unusually low long-term interest rates. Maybe he’s got a point, since there are so few good reasons to take the supposed glut and invest it in, say, new manufacturing capacity. But who’s complaining? The thrill of living in a post-industrial economy is that -- to borrow from Warhol -- someday we’ll all be billionaires. But not if we have to do it by creating real goods from actual raw materials. That’s so Adam Smith.   

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Information and commentary contained herein comes from sources believed to be reliable, but this cannot be guaranteed. Past performance should not be construed as an indicator of future results, so let the buyer beware. Rick's Picks does not provide investment advice to individuals, nor act as an investment advisor, nor individually advocate the purchase or sale of any security or investment. From time to time, its editor may hold positions in issues referred to in this service, and he may alter or augment them at any time. Investments recommended herein should be made only after consulting with your investment advisor, and only after reviewing the prospectus or financial statements of the company. Rick's Picks reserves the right to use e-mail endorsements and/or profit claims from its subscribers for marketing purposes. All names will be kept anonymous and only subscribers’ initials will be used unless express written permission has been granted to the contrary. All Contents © 2005, Rick Ackerman. All Rights Reserved. www.rickackerman.com 

-- Posted Tuesday, 21 March 2006 | Digg This Article | Source: GoldSeek.com

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