After clearing the bogey at S&P 1405 at last in the previous week, the index has now pulled back to that level and for now bounced off it... hence old "resistance" now becomes new "support". It will be interesting to see if this holds but I expect it to do so for now.Some other thoughtsAs I've said in the weekly round up, the "strong dollar" fantasies have usually lasted 5-10 days or so... it was nearing midnight. With crude north of $120 and the dollar returning to its rightful place as the junk of the world, we might be done already. This happens like clockwork now almost every 6-8 weeks. As I wrote in detail last week, the fundamental issues facing our country do not allow for a stronger dollar... we continue massive deficit spending and we print money like mad to solve our problems. This is not a recipe for good, and Warren B agrees. All dollar rallies, while some might last days, so [More...]

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It is always so fun to watch analysts clash with each other; especially over a fan favorite such as Google (GOOG). I've had a stake in this name since day 1 in the fund, but it's never been a large stake (usually 1% or less of the fund holdings). I've had an open question since last August how Google would react in its first full blown recession. (Aug 30: Google Can't Get Any Traction - is this Why?) Of course at that time no one said we were going into a recession. I mean even now we have a lot of holdouts ;) after all everything will be fine "in 6 months"; unemployment is low and will rebound "in 6 months"; inflation almost nil and any inflation that there is will be gone "in 6 months", and the housing market will be back "in 6 months". [More...]

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