Beat The Dart -"Picking Stocks the Old-fashioned Way"

The disappointment on Wall Street that the Fed may not lower rates has contaminated equity prices. The S&P 500 index has moved below technical support of 1,410.00 and is currently at 1408.72. Indeed, a negative sign and one to carefully watch. Time to close out marginal, short term plays and accumulate cash.

.... 12:30am ... Yesterday's performance underscored investors confusion about future direction of the market, especially after minutes from the Federal Reserve's last meeting indicated policymakers were in no hurry to cut interest rates. As indicated at least ten times in Dartline, the Fed cannot lower interest rates without collapsing the U.S. dollar. A cheaper dollar would cause hyperinflation and drive up interest rates without the Fed's intervention. The benchmark 10-year Treasury note would yield 8.50 per cent and cause a meltdown of the U.S. economy. Naturally, no one wants to create such a scenario and the powers to be will act to maintain the status quo. Thus, interest rates will remain unchanged, while the investing public will cry for lower rates, and the Fed will continually hint to raise rates. A perfect show of mirrors, and one that can be successfully played by investors who understand the game... As for light sweet crude dropping $2.73 to $55.59 on the New York Mercantile Exchange, so what? The price of oil at this stage will have no effect to the commercial dynamics of trade. Most oil contracts are not based on spot prices, and the softness in oil prices are due from supply inventories that should have been burned off with the winter session. The global warning phenomena is the culprit. Oil as a fuel is not a major use, and the current action must be discounted as old fashion hoopla.. ... For our agenda, the action of the S&P 500 index is where the real story must remain. At 1,418.34 up 1.74 is sufficient to remain positive as to the future direction of the market. For now, the S&P is in a "safe zone" with support at 1,410.

... Purpose of the arrows: - projecting that DJIA, Nasdaq and S&P barometers will close higher at the end of the day. - projected consolidating barometers with limited directional action. - projecting all three barometers declining for the days. .... Our Message Board and "Contact Us" elements are available at no cost to keep you up-to-date with timely information. Our Fantasy Hedge Fund gives you a concise overview of how investment ideas are executed. All transactions are posted on the Message Board