AIG - Half Down, $51 Billion to go

http://money.cnn.com/2010/03/08/news/companies/aig_payback/

Source: CNN

Scaling the Deficit

Awesome article and charts on the deficit

http://www.briefing.com/GeneralContent/Investor/Active/ArticlePopup/ArticlePopup.aspx?SiteName=InvestorPopUp&ArticleId=NS20100303100545AheadOfTheCurve

Oneoption Results

Excerpt from Peter Stolcers weekly email..... "The Weekly Report has been knocking the cover of the ball. Here are all of the trades from the last six months"

Really? He's lost you money so far in 2010. (closed positions in 2010) I'd hardly call that knocking the cover off of the ball............... I would say "it had knocked the cover off the ball, when the market was going straight up as well in late 2009"

Tool in the Crib #98 - Wall Street Traffic Light

http://www.wallstreettrafficlight.com/

The Wall Street Traffic Light, a new investment strategy explained in hisbook, provides specific answers to those questions. The strategy is best suited to 401(k) and IRA investors (because of their tax advantage), but other investors also may find it to be useful.

The Wall Street Traffic Light (WSTL) strategy is based on historical patterns of the S&P 500 Index—the broad-based, large-company index of U.S. stocks that serves as a widely-used barometer of the market. By looking closely at the annual returns and short-term movements of the S&P 500 over time, he found four recurring patterns that will help guide investors today. In his book you will discover this important, scientifically-tested history lesson: For every rolling decade during 1935-2009 (1935-1944, 1936-1945…2000-2009) the WSTL strategy has achieved higher returns and took lower risk compared to buying-and-holding the S&P 500. That is “sleep well” performance indeed.

15% Head Start with 529 Plans

If someone gave you a 15% head start toward saving for college, would you take it? That's the basis for Matt Krantz's recent article in USA Today regarding 529 Plans. Check it out:


http://www.usatoday.com/money/perfi/columnist/krantz/2010-02-05-529-college-savings-plans_N.htm?csp=

Stock Market Holiday Schedule 2010

Stock Market Holiday Schedule 2010

New Year's Day	January 1, 2010
Martin Luther King Jr. Day	January 18, 2010
President's Day	February 15, 2010
Good Friday	April 2, 2010
Memorial Day	May 31, 2010
Independence Day	July 5, 2010 (Observed)
Labor Day	September 6, 2010
Thanksgiving Day	November 25, 2010
Day after Thanksgiving	Early close 1:00 p.m.
Christmas	December 24, 2010 (Observed

Obama Proposes New Bank Rules

Get ready for a bumpy ride...

http://www.cnbc.com/id/15840232?video=1392047299&play=1

AIG and our Fed committing fraud?

During the height of the financial crisis, the Federal Reserve Bank of New York told AIG to withhold details from the public about the insurer's payments to banks. CNBC's Mary Thompson and Steve Liesman discuss.

http://www.cnbc.com/id/15840232?video=1379512572&play=1

FMM Daily Newsletter Cumulative Results Since Inception

	2005	2006	2007	2008	2009		Cum.
ST - Indicator	21.0%	11.0%	6.0%	-11.5%	15.2%		41.7%
ST - Candles	n/a	n/a	n/a	21.8%	11.0%		32.8%
LT - Indicator	n/a	n/a	n/a	-17.3%	28.7%		11.4%
DT - Newsletter	na/	n/a	n/a	11.9%	23.0%		34.9%
FMM Newsletter Avg.	21.0%	11.0%	6.0%	1.2%	19.5%		30.2%
S&P 500	3.0%	14.0%	3.0%	-38.5%	23.5%		5.0%

2009 Daily Newsletter Results

2009 Results:

Portfolio#1 - Day Trade Daily Newsletter
23.0%

Portfolio#2 - Long Term Swing Trade Daily Newsletter
28.7%

Portfolio#3 - Swing Trade Market Indicators Newsletter
15.2%

Portfolio#4 - Swing Trade Candle Charts Newsletter
11.0%


S&P 500
23.5%

Dow
20%

email me to request a detailed copy of trades

Tool in the Crib #97 - Trader Planet Webinars

These on-demand presentations, given by independent technical instructors, give you an opportunity to learn more about trading in specific areas of interest

http://www.traderplanet.com/library/webinars

Technical Analysis Series
Fundamental Analysis Series
Intermarket Analysis Series
Industry Series

FMM ST Candle Newsletter Trade - XLE

Bought:

Date	Share$	Shares	Amount
01/04/10	57.92	173	10,000

Sold:

Date	Share$	Shares	Amount	G/(L)
01/06/10	59.75	173	10,316	316	3.2%

Then versus Now

Federal Government Growth

Not a political comment just the facts....

- In the past ten years, when not including the post office, federal employment is up 15% versus just 1% in the private sector.
- Average annual salary of federal employee: $71,206 versus $40,331 in the private sector
- Average annual salary with benefits of federal worker: $119,982 vs. $59,909 private sector
- 19% of federal workers make $100,000 plus, up from 14% year over year
- There are more federal employees making $100,000 than $40,000 a year

Is it fair that I still have to pay my taxes if Citigroup doesn't?

U.S. gave up billions in tax money in deal for Citigroup's bailout repayment

http://www.washingtonpost.com/wp-dyn/content/article/2009/12/15/AR2009121504534_pf.html

The federal government quietly agreed to forgo billions of dollars in potential tax payments from Citigroup as part of the deal announced this week to wean the company from the massive taxpayer bailout that helped it survive the financial crisis.

The Internal Revenue Service on Friday issued an exception to long-standing tax rules for the benefit of Citigroup and a few other companies partially owned by the government. As a result, Citigroup will be allowed to retain billions of dollars worth of tax breaks that otherwise would decline in value when the government sells its stake to private investors.

While the Obama administration has said taxpayers are likely to profit from the sale of the Citigroup shares, accounting experts said the lost tax revenue could easily outstrip those profits.

Tool in The Crib #96 - 529 College Planning

Use this section to research 529 plans from every state. We provide plan information and tools that help you choose which plan is right for you. We have even rated all of the nation's 529 plans so you can quickly compare overall effectiveness of each plan.

http://www.savingforcollege.com/college_savings_201/

Popular comparisons

• State tax deductions available for residents
• Enrollment fees charged
• Do I have to be a resident to apply?
• Can I sign-up online?
• Can I change the account owner?
• Is there a tax incentive for using my state's 529 plan?
• How well does my state's 529 plan perform?
• Does my State offer to match my own contributions to an in-state plan?
• How to take advantage of your state's tax deduction

529 plan history

A 529 Plan is an education savings plan operated by a state or educational institution designed to help families set aside funds for future college costs. It is named after Section 529 of the Internal Revenue Code which created these types of savings plans in 1996.

Types of 529 plans

529 plans are usually categorized as either prepaid or savings plans.

Savings Plans work much like a 401K or IRA by investing your contributions in mutual funds or similar investments. The plan will offer you several investment options from which to choose. Your account will go up or down in value based on the performance of the particular option you select.

Prepaid Plans let you pre-pay all or part of the costs of an in-state public college education. They may also be converted for use at private and out-of-state colleges. The Independent 529 Plan is a separate prepaid plan for private colleges.

The Real Cost of Higher Education

An excellent education for your child does not necessarily require that you spend $40,000 in today’s dollars for one year of tuition at an Ivy League school. There are many well-regarded, reasonably-priced private colleges. The average public college or university tuition is lower yet, especially for residents of the state where the school is located.

Type of Institution	Projected 4-Year Tuition and Fees
	Today (Enrolling 2009)	In 18 Years (Enrolling 2027)
Private College	$116,600	$332,800
Public/University (in-state resident)	$30,500	$87,200
2 Years Community College & 2 Years Private College	$66,900	$191,200

(Based on average tuition and fees for 2008-2009 as reported by The College Board® and assumed to increase 6% annually.)

Qualified Tuition Programs (529 plans)—Earnings grow tax-deferred and distributions are tax-free when used for qualified post-secondary education costs.

Coverdell Education Savings Accounts— Earnings grow tax-deferred and distributions are tax-free when used for qualified post-secondary education costs. ESAs may also be withdrawn tax-free for primary and secondary school expenses before 2011.

Peter Stolcers going bearish?

Here is an excerpt from his email dated 12/3:

"It’s possible that prices will break out on a good number tomorrow and that reversal will happen in the next week or two. Regardless, I feel that this rally is in the ninth inning and the headwinds are blowing. I have started selling out of the money call credit spreads on weak stocks. I don’t want to get too aggressive shorting the market into year end.

Once the uptrend line from March fails (SPY 107) I can get more aggressive with my shorts. DON’T BUY INTO THE RALLY, LOOK FOR SHORTING OPPORTUNITIES ON THE BACKSIDE."

Tool in the Crib - Podcast #95 - Black Friday Ads

Starting planning for your 4am shopping trip on Black Friday at: http://bfads.net/

Problem mortgages hit new high at 14 percent

Problem mortgages hit new high at 14 percent
Data mean foreclosures may not peak until next year

By Renae Merle
Washington Post Staff Writer
Friday, November 20, 2009

More than 14 percent of borrowers were in trouble on their mortgage during the third quarter, a new record, according to an industry survey released Thursday, which also suggests that the foreclosure rate is likely not to peak until next year as unemployment rates continue to rise.

Unemployment remains a big driver of the problem, according to the Mortgage Bankers Association, which conducts the survey. Those with delinquent loans now include a growing portion of people traditionally considered creditworthy and people whose mortgages are insured by the Federal Housing Administration.

"The outlook is that delinquency rates and foreclosure rates will continue to worsen before they improve," said Jay Brinkmann, the group's chief economist.

About 9.6 percent of borrowers were delinquent on their mortgage during the third quarter, according to the survey, and another 4.5 percent more were somewhere in the foreclosure process. Overall, about 14 percent of mortgage loans or 7.4 million households were delinquent or in the foreclosure process during the quarter, according to the group.

That is the highest level recorded by the survey, which has been conducted since 1972, and is up from about 10 percent of borrowers who were in trouble during the same period last year.

If unemployment rates peak by the middle of next year, foreclosures could reach their highest levels by the end of the year, Brinkmann said. But even after peaking, foreclosure rates are likely to remain elevated as borrowers in regions that have had steep price declines and now owe more than their home is worth continue to struggle, he said.

The majority of the problem remains in the Sun Belt states, such as California and Florida, which accounted for about 43.4 percent of the foreclosures started during the third quarter. Delinquency rates also grew locally.

The number of borrowers delinquent or in foreclosure in the District, for example, rose to 10.3 percent during the third quarter, compared with 7.4 percent during the same period last year. In Virginia, 9.9 percent of borrowers were in trouble with their mortgage compared with 7 percent last year. Maryland has the highest proportion of borrowers in delinquency or foreclosure in the area, 13.9 percent during the third quarter. That is up from 9.2 percent last year.

The foreclosure problem is building despite a massive government program that pays lenders to lower borrowers' payments. The rising foreclosure rate is not surprising, said John Taylor, chief executive of the National Community Reinvestment Coalition, a nonprofit housing group. "It's still disappointing nonetheless. Everyone would like to see a slowdown in this," he said.

The report also weighed on Wall Street on Thursday, along with mixed economic data. The Dow Jones industrial average was down 0.9 percent, or 93.87 points, to close at 10,332.44, while the Standard & Poor's 500-stock index fell 1.3 percent, or 14.90 points, to 1094.90. The tech-heavy Nasdaq composite index had the heaviest losses after reports that Bank of America had downgraded the semiconductor sector. It fell 1.7 percent, or 36.32 points, to 2156.82.

The results overshadowed a Labor Department report showing that the number of workers filing for initial unemployment benefits stayed flat last week. Also, the Federal Reserve Bank of Philadelphia's general economic index, which measures manufacturing activity in the mid-Atlantic region, reached 16.7 in November, up from 11.5 in October.

"This is an easy opportunity for some of the weak hands to take some profits," said Phil Orlando, chief equity market strategist at Federated Investors in New York. "I am characterizing what is going on here as a speed bump. This turn in the economy is real. There is just a little bit of chop to the numbers."

Source: The Washington Post

http://www.washingtonpost.com/wp-dyn/content/article/2009/11/19/AR2009111903885_pf.html

Gorilla Trades Open House (again!)

For the next week, simply log into the secure Subscribers area of www.gorillatrades.com with the username "openhouse" and the password "special" (all lower case letters and no spaces) as many times, and as often as you wish.

Detroit Silverdome

Yesterday saw the exclamation point to the nosedive the town has endured when its beloved sports stadium was sold. The Detroit Silverdome fetched $583,000 thirty-five years after it was built for $55.7 million.

The end of my cable bill near?

Clicker aims to be TV Guide for Internet shows

Vowing to be a TV Guide for all Internet television, Clicker launches publicly Thursday, following a 58-day invitation-only “beta” period.

Founder and CEO Jim Lanzone says Clicker has indexed over 40,000 full episodes from more than 1200 sources, including sites such as Hulu, in more than 1,200 categories. Its catalog also includes 30,000 movies from Netflix Instant Streaming and Amazon Video on Demand, as well as more than 50,000 music videos from over 20,000 artists. (You’ll be told if you have to pay to watch something.)

Clicker’s data includes programming that appears online from all the usual broadcast suspects (and many more), as well as broadcast-quality Web originals. Certain podcasts are also indexed -- lectures and academic panels at Stanford University, for instance -- but Clicker isn’t meant to find every last clip on YouTube. It also brings up only what it considers to be legal content.

You can browse content by category or media type or find programming alphabetically. Clicker also provides recommendations for shows, and related shows based on what you search for. Click on The Office, and you’ll find related shows such as 30 Rock, Scrubs and Seinfeld.

You can also search by general topic. So if you type in Ft. Hood, you’ll get listings from the likes of Countdown with Keith Olbermann, The O’Reilly Factor, and CBS Evening News among others that covered the recent shooting there.

As you find shows, Clicker indicates how many full-length episodes are available to watch online immediately (regardless of the source). If a show is available from more than one source -- NBC and Hulu for 30 Rock, for example -- you can determine from where to watch it.

You can save episodes to a playlist (provided they’re still available to watch from the original source) and receive new episode alerts on shows of interest, via TiVo-like season passes. You can also share comments and facts about shows you watch. And you can search from within a show, to find, say, the 60 Minutes interview with Andre Agassi or an older 2001 appearance by the tennis star on Charlie Rose.

Clicker will also display trends lists of the most popular online shows.

Founder and CEO Jim Lanzone (formerly CEO of Ask.com) claims other video search engines are too scattershot and boasts that Clicker even does an even better job of searching Hulu than Hulu.

He also says Clicker can be instructive when shows are not available online (at least legally). Type The Jeffersons or The Golden Girls, for example and you’ll get a description of the shows. But you’ll also see the following programming note: “The distributor has not made any episodes available online yet. When they become legally available, we will list them here.”

The venture backed company recently added Sling Media founder and ex-CEO Blake Krikorian to the Board of Directors. Sling is known for the Slingbox video streaming device.

Tool In The Crib - Podcast #94 - CNBC RT Iphone APP

http://www.cnbc.com/id/33077961/

Live, Streaming Real-Time Quotes and Charts

The only free App that delivers Real-Time stock quotes before, during and after market hours (4am-8pm), direct from the NYSE and NASDAQ.

CNBC’s Exclusive Breaking News Alerts

Leveraging the power and resources of CNBC’s 24-Hour global coverage, allowing you to stay on top of the markets no matter where you are.

Video on Demand

Offering over 150 new video clips produced each day, featuring top business news videos, global market analysis, and CEO interviews.

Plus, Interactive charts, Pre-Markets, "My Stocks" Customizable Watchlist and more!

The Economy is so Bad that...

The Economy is so Bad that . . .

The economy is so bad that I got a pre-declined credit card in the mail. It's so bad, I ordered a burger at McDonalds and the kid behind the counter asked, "Can you afford fries with that?" The economy is so bad that CEO's are now playing miniature golf. The economy is so bad if the bank returns your check marked "Insufficient Funds," you call them and ask if they meant you or them. The economy is so bad Hot Wheels and Matchbox stocks are trading higher than GM. The economy is so bad parents in Beverly Hills fired their nannies and learned their children's names. The economy is so bad a truckload of Americans was caught sneaking into Mexico. The economy is so bad Dick Cheney took his stockbroker hunting. The economy is so bad Motel Six won't leave the light on anymore. And finally... Congress looked into this Bernard Madoff scandal. Oh Great! The guy who made $50 Billion disappear is being investigated by the people who made $1.5 Trillion disappear!

Day Trade Newsletter - Trade

It's been awhile since my last post, so I figured that I'd share with you the short we had today in the Fast Money Machine Day Trade Newsletter. 2 technical patterns flagged the night before to short the SPY today. 1.5% return on our day trade today, bringing the YTD portfolio total to 23.4% YTD versus the S&P 500 return of 15.7%

Date

Share$

Shares

Amount

Date

Share$

Shares

Amount

G/(L)

10/28/09

104.41

189

19,707

short

10/28/09

105.96

189

20,000

293

1.5%

Tool in the Crib - Podcast #93 - News Map

http://www.newsmap.jp/

Newsmap is an application that visually reflects the constantly changing landscape of the Google News news aggregator.

A treemap visualization algorithm helps display the enormous amount of information gathered by the aggregator. Treemaps are traditionally space-constrained visualizations of information. Newsmap's objective takes that goal a step further and provides a tool to divide information into quickly recognizable bands which, when presented together, reveal underlying patterns in news reporting across cultures and within news segments in constant change around the globe.

Newsmap's objective is to simply demonstrate visually the relationships between data and the unseen patterns in news media.

Retirement Pains and Realities

Retirement Pains and Realities - Excerpt from Charles Payne's Market Commentary

It was bound to happen in the post-crash (maybe that's too optimistic). There is a ton of bitterness and fear among those that were told to work hard, put their money away in the stock market, so their golden years would be golden. Instead, there are endless stories of folks having to work at golf courses rather than play away on them. It's a tragedy in many ways, but some of the solutions being tossed about could be even more tragic. Local municipalities are balking at making fresh contributions to pensions, while there is talk that it's inevitable the Pension Benefits Guarantee Corp. will have to step up to the plate. But, the thing is that people are panicking. An article in "Time" magazine suggests ditching 401Ks in favor of some kind of guaranteed system. An article in the "Washington Post" suggests that government pension funds are going broke so what good is a guarantee.

The market had been predictable and unstoppable for decades, so it was easy to assume history would be a reliable guide. As it turns out, the last ten years are the lost decade for the U.S. stock market. Sure, toss in dividends and spin-offs and you could argue that money has been made, but not the kind of money people are relying on for years of comfortable retirement. Of course, the stock market could be an effective wealth creation tool and it's a great place to make money, but the notion of just putting money into it without actively monitoring progress and making changes is part of the fallacy that has wrecked so many people. When I say monitor I'm not talking gains and losses but what their holdings are, what industries those holdings are in, and how well those holdings are performing on a fundamental basis (are they gaining market share, growing margins, etc.).

Government Pension Funds

Some of the sobering realizations made in the "Washington Post" article by David Cho:

* Within 15 years public systems on average will have less than enough money needed to pay pension benefits
* Government pension funds are $1.2 trillion short of funds expected at this time
* Warren Buffett calls these pensions "time bombs"
With respect to the current dilemma of state pension funds, there has to be a realization that people have to take the hit. Moreover, now isn't the time to lose faith in the system but to understand it's going to take more creative ways to play the stock market and invest for the long haul.
I would take these funds and put them into smaller, nimbler baskets, I would allow some baskets to even go short the market and write options against established positions. I think that government pension funds should also consider investing in local businesses to create a win-win situation. Let's bring more free markets to government rather than more government to free markets. In the meantime, payouts are going to have to take hits. There is no way around it as all Americans have taken hits, so too should government employees. There is a good argument that firefighters and policeman desire special recognition for the risks they took during their careers, but that should be handled with higher pay because once exemptions are made politics kick in and it would only be a matter of time before good arguments for dog catchers getting bailed out is floated.

I don't see how any investment can be guaranteed in the first place. States must find better ways to manage the retirement savings of its workers, but there is no guarantee.

So, pension funds are in trouble, and 401Ks are in trouble, too.

401K Funk

The fact is that 401Ks haven't lived up to their potential for a variety of reasons. They were sold and still continued to be hyped as cure-alls. Magic boxes where workers dump in money and it's nurtured and grows into a big retirement safety net. The big mistakes:
* Being told to always be long the stock market all the time even when it has had a terrific rally and may be due for a pullback has been a major disservice to investors.
* Ironically, people load up at the top and avoid putting money into their 401Ks at the bottom

I think that people should be allowed to go short the market and individual stocks. Other options include:
* I think people should do a thorough investigation of their holdings monthly, quarterly at the least. It's amazing to me how many people don't know what they're holding in their retirement funds.
* People need more choices right now as they are just offered a handful on mutual funds that aren't very different.
Facts:
* The average 401K balance is $45,519
* 46.0% of 401K plans have less than $10,000

Forbes 400 List, OUCH!!

The Forbes 400 list of richest Americans is down $300.0 billion to a combined wealth of $1.27 trillion, for the most part, it's the same old names.

http://www.forbes.com/2009/09/29/forbes-400-buffett-gates-ellison-rich-list-09-intro.html

100 Best Global Brands

Really Gillette? I couldn't tell you what disposable I shave with!

1. Coca-Cola ($68,734 million)
2. IBM ($60,211 million)
3. Microsoft ($56,647 million)
4. GE ($47,777 million)
5. Nokia ($34,864 million)
6. McDonald's ($32,275 million)
7. Google ($31,980 million)
8. Toyota ($31,330 million)
9. Intel ($30,636 million)
10. Disney ($28,447 million)
11. Hewlett-Packard ($24,096 million)
12. Mercedes-Benz ($23,867 million)
13. Gillette ($22,841 million)
14. Cisco ($22,030 million)
15. BMW ($21,671 million)
16. Louis Vuitton ($21,120 million)
17. Marlboro ($19,010 million)
18. Honda ($17,803 million)
19. Samsung ($17,518 million)
20. Apple ($15,443 million)

Check out the full article:
http://arstechnica.com/microsoft/news/2009/09/microsoft-takes-bronze-in-most-valuable-brand-report.ars?utm_source=microblogging&utm_medium=arstch&utm_term=Main%20Account&utm_campaign=microblogging

What Corporate America is Reading

Top 10 list... Has anyone read any of these?

1. "Strategy for Sustainability: A Business Manifesto" by Adam Werbach; Harvard Business Press

The definitive work by an authoritative voice on the topic.

2. "Rich Dad's Prophecy" by Robert T. Kiyosaki, Sharon L. Lechter; Business Plus

Answers the question on working person's minds: "Will I ever be able to retire?"

3. "Rich Dad's Guide to Investing" by Robert T. Kiyosaki, Sharon L. Lecher; Business Plus

A guide to understanding the real earning power of money by learning investing secrets of the wealthy.

4. "Rich Dad's Increase Your Financial IQ" by Robert T. Kiyosaki, Jake Johnson; Business Plus

The latest book in the "Rich Dad" series lays out five key principles of financial intelligence.

5. "Be the Hero: Three Powerful Ways to Overcome Challenges in Work and Life" by Noah Blumenthal; Berrett-Koehler

Executive coach and corporate trainer shows workers and managers how abandoning our victim stories and embracing our heroic potential can increase employee engagement and productivity.

6. " How: Why How We Do Anything Means Everything ... in Business (and in Life)" by Dov Seidman; John Wiley & Sons

An insightful manifesto that guides companies and their leaders to achieve sustainable profit without compromising core values.

7. "Sense of Urgency" by John Kotter; Harvard Business Press

In "Leading Change," Kotter provided an action plan for successful transformations. Now, he shines the spotlight on the first step: creating a sense of urgency by getting people to see and feel the need for change.

8. "Love Leadership: The New Way to Lead in a Fear-Based World" by John Hope Bryant; Jossey-Bass Inc.

This book makes the case that the best way to get ahead is to figure out what each individual can give to a world seemingly obsessed with the question: What's in it for me?

9. "Rich Dad's Cashflow Quadrant" by Robert T. Kiyosaki, Sharon L. Lechter; Warner Books

Revelations about why some people work less, earn more, pay less in taxes, and feel more financially secure than others.

10. "Trust Agents: Using the Web to Build Influence, Improve Reputation, and Earn Trust" by Chris Brogan, Julien Smith; John Wiley & Sons

How people use online social tools to build networks of influence and how you can use those networks to positively impact your business.

Gorilla Trades Open House

For the next week, simply log into the secure Subscribers area of www.gorillatrades.com for FREE!!

Use the username "openhouse" and the password "special" (all lower case letters and no spaces) as many times, and as often as you wish.

Debit or Credit?

Personally, I have no earthly idea why anyone would use a debit card over a credit card (as long as you pay off the balance every month). Here are some pros and cons:


Source: USA Today
http://www.usatoday.com/money/perfi/credit/2009-08-27-mym-debit-credit-card_N.htm?csp=DailyBriefing

Debit card pros and cons

Some considerations when using a debit card:

•Make sure the funds are there. A $6 sandwich can wind up costing $46 if you don't realize your checking account is flat-lining. Most merchants no longer reject a card if you have an inadequate balance; instead, you incur a hefty overdraft fee.

For example, Bank of America charges $35 for each overdraft above $5. Spokeswoman Anne Pace says fees will be capped after a consumer makes 10 overdrafts in a single day; overdrafts totaling less than $5 carry a smaller fee of $10. Wachovia charges $22 for the first overdraft in a 12-month period, then $35 for each subsequent one, says spokeswoman Richele Messick.

Messick suggests debit customers can avoid fees if they keep track of expenditures and link checking accounts to savings accounts, credit cards or lines of credit.

•A security breach could mean trouble. "I do think there are a lot of advantages to using debit cards as far as restraining spending, but there are a lot of risks of having debit card information stolen," says Ronald Mann, a Columbia University law professor who wrote Charging Ahead: The Growth and Regulation of Payment Card Markets.

"If there's a problem with a credit card, I simply put that card aside and use a different card until things get worked out. With debit, it's a much more serious event," Mann says.

Federal regulations limit liability for most consumers who are defrauded, but your debit account could be inaccessible for up to 10 business days after you report the fraud, says Gail Hillebrand, senior attorney for the non-profit Consumers Union's West Coast office.

If your credit card is lost or stolen, you typically won't be on the hook for more than $50. If an unauthorized user gets your card number but not your card, your liability in most cases is zilch. Both Visa and MasterCard promise "zero liability" and quick resolution for any fraud committed over their transaction networks, including debit transactions. Some merchants use other networks.

•Usage fees. Some banks and merchants charge fees of 50 cents or a $1 for debit card use at certain stores.

•Account blocks. Some merchants place blocks on debit accounts for purchases that aren't completed immediately: hotels, vehicle rentals and gasoline purchases, for example. That could keep you from using the debit card for other purchases.

•Prepaid debit and gift cards. Look out for fees — activation fees, non-use fees, ATM withdrawal fees, retail fees and reload fees. Also, many of these cards aren't covered by federal regulations.

What about credit cards?

The major difference between credit and debit cards — when the money actually leaves your bank — accounts for the positives and negatives. Some considerations:

•They offer free short-term borrowing. If you pay the balance in full on time, you get an interest-free loan.

•Delayed payment raises the price paid. The $6 burger that ballooned to $46 with the debit card overdraft? It could do the same — or worse — over time on a credit card if you don't pay the balance at month's end. High interest rates and late-payment penalties can add up.

•Charges can be denied. If you use your card to purchase something that didn't turn out the way you had hoped, you can dispute the charge. Some credit cards even carry insurance on purchased items.

"It's the best method for ordering online or ordering something that you can't evaluate until you bring it home and plug it in," says Consumers Union's Hillebrand.

•They tempt you to buy more than you can afford. "You have the best consumer protections on the payment method that creates the most risk to your household budget," Hillebrand says. "The biggest danger with credit is going into debt — and that's a danger that's highly overlooked."

•Be careful with rewards. Some credit card companies offer rewards programs to keep customers charging — although some issuers recently instituted fees for delinquent card holders who wish to remain eligible for rewards. Hillebrand advises consumers to rethink rewards.

"The basic problem with rewards programs is that they are designed to get us to use our credit cards more than we really should," she says. "If you're at any risk of not being able to pay it off at the end of the month, the rewards are not worth it. And, in this economy, we're all at risk."

FMM - Swing Trade Daily Newsletter Trade - XLE Indicator

Overbought / Oversold Indicator Portfolio Trade: XLE

Bought at the next days open (8/12/09) when the indicator flashed an oversold status of -6.00 (blue line) and sold at the next days open (8/22/09) when the indicator flashed an overbought status of +6.40. (blue line)

Date

Share$

Shares

Amount

08/12/09

50.20

199

10,000

Date

Share$

Shares

Amount

G/(L)

08/24/09

52.84

199

10,526

526

5.3%

Tool in the Crib - Podcast #91 - Stock Risk Score Sheet

This weeks tool in the crib is the Stock Risk Score Sheet for investing, which can be found here, courtesy of winninginvesting.com.
http://www.winninginvesting.com/risk_score_sheet.htm

It consists of 7 criteria to consider for a particular stock. Add one point for each of the following conditions.

1) Debt level of a company (D/E >0.5)
2) Market Capitalization (< $2b) 3) Profitability (ROE <>10%)
6) Operating Cash Flow (negative)
7) P/E Ratio (>40)

The higher the number the greater the risk in investing in this company. Perfect score is zero, the lower results the better.

How Does Your Broadband Rate

U.S. states with the fastest broadband Internet. My state (N.C.) falls somewhere in the middle. Road Runner in my area is plenty fast, I just wish the upload speeds were greater. Where does your state rank and do you agree with it?

Check it out at: http://latimesblogs.latimes.com/technology/2009/08/15-us-states-with-the-fastest-broadband-internet-speeds.html


source: La Times

Upromise eCoupons

Have you joined UPromise yet? If not, now's the time to do so. Why? Because you can earn money for college or future education just by registering your grocery cards and buying the things you would normally buy.

There are ways which you can earn money through it, without spending any extra money to do so.

First off, you just need to sign up here and then register your shopper's cards and debit cards. When you shop and use these cards, you can earn a small percentage back on many items you would already be purchasing.

But that's not all! They've also rolled out an ecoupons program. These are unlike the ecoupons offered through Cellfire or Shortcuts which automatically come off of your grocery total. Instead, when you redeem these ecoupons (by buying one of the items these coupons are for), you'll get the cashback credited to your UPromise account.

I'd recommend loading on all of the ecoupons available every month. You probably won't buy a number of the items, but you never know when there's going to be a great bargain.

Yes, it's only $0.75 here and $1 there, but over time, it can really add up. Plus, if you have friends or relatives who are not interested in earning their own UPromise money, you can ask them if they'd be willing to add their cards to your account and then you can also earn a little bit for their purchases, too!

Cramer's Manifesto

What's the formula for bringing jobs back to America? Cramer outlined his "Capitalist Manifesto," an eight-point plan that he said you won't hear anywhere else.

1. Embrace natural gas: Create a network of natural gas pipelines and subsidize natural gas vehicles.

2. Build infrastructure: Rebuild everything, from roads and bridges to waterways and runways. Put some serious money back into our country.

3. Fix healthcare: The government needs to create three nationally competing healthcare providers and subsidize all of them to increase competition and bring down prices.

4. Bring home the troops: Reduce the number of troops in countries like Germany, Japan and South Korea and put the Corp of Engineers to work at home.

5. Pay a bounty: Pay companies a bounty for every American they hire.

6. Serious solar: Get serious about solar energy and subsidize a solar panel for every home.

7. Build high-speed trains: Just about every other country has one, and they create jobs. Build a high-speed line from Maine to Florida and another across the country.

8. Stop pushing card-check unions: No company want to hire with the threat of unions looming. The economy just can't take the hit right now.

Source: http://www.thestreet.com/story/10554431/1/cramers-mad-money-recap-market-takes-a-breather-final.html

Tool #61 - Podcast #89 - SMB Capital Blog & Twitter

http://www.smbtraining.com/blog/

SMB Blog shares market stories and trading lessons from experienced, professional proprietary traders. Here, we discuss trading setups, the psychology of trading, and trading fundamentals. SMB Blog also offers coaching, market commentary, and interesting stories from successful active proprietary traders at SMB Capital.

FMM - Swing Trade Daily Newsletter Trade - XLF Indicator

Overbought / Oversold Indicator Portfolio Trade:

Bought at the next days open (7/9/09) when the indicator flashed an oversold status of -8.60 (blue line) and sold at the next days open (7/16/09) when the indicator flashed an overbought status of +6.60. (blue line)

Date

Share$

Shares

Amount

07/09/09

11.27

887

10,000

Date

Share$

Shares

Amount

G/(L)

07/16/09

12.15

887

10,781

781

7.8%

Newsletter Performance Update as of 7/15

Don't you just love diversification. All 3 Newsletters approaching 10% YTD returns!!

Portfolio Performance:
The Fast Money Machine Charts Portfolio			9.5%	YTD	3.3%	SPY YTD	6.2%	0,"Outperformance","Underperformance")">Outperformance
The Fast Money Machine ST Model Portfolio			9.3%	YTD	3.3%	SPY YTD	6.0%	0,"Outperformance","Underperformance")">Outperformance
The Fast Money Machine LT Model Portfolio			9.3%	YTD	3.3%	SPY YTD	6.1%	0,"Outperformance","Underperformance")">Outperformance

And lets not forget about the Day Trade Newsletter now up 19.2% YTD!!

FMM - Swing Trade Daily Newsletter Trade - SPY Candle

7/10 - shorted at 87.70 as the stock gapped lower but traded in a narrow range along support. still waiting for the breakout move as this wasnt it. stop 92

7/13 - the breakdown was false as it launched higher today. keep stop at 92.25 as we will see if 50 day provides resistance.

7/14 - false breakdown is killing me. looking for 50 day to provide resistance and a turning point back down. keeping stop at 92.

7/15 - stopped out at 92 as stock gapped up above 50 day, next possible trade point is recent highs at 96.

Date

Share$

Shares

Amount

07/15/09

92.00

114

10,490

Date

Share$

Shares

Amount

G/(L)

short

07/10/09

87.70

114

10,000

(490)

-4.7%