Monday, January 2, 2012

Silver Awaiting Pivot Low

Since its Sept-Oct recovery rally peak at $35.71, spot silver prices have stair-stepped to the downside towards a retest of the Sep 26 spike low at $26.02. If violated and sustained, this should trigger a final bout of long liquidation that presses silver into a minimum target zone in the vicinity of $25.00, but possibly into the $22.00-$20.00 target support zone, where I will be expect price stability ahead of the emergence of a sharp recovery rally period.

At this juncture, only a sudden sharp upside reversal that hurdles and sustains above $31.70 will neutralize my still-bearish near-term outlook for silver and the iShares Silver Trust ETF (SLV).

Silver Wheaton (SLW), too, is on the defensive, and also still points lower, into an optimal target zone of 23.75 to 22.00 prior to my expectation of a significant intermediate-term low, followed by a powerful new bull leg in its longer-term bull trend.

At this juncture, only a rally that hurdles 32.00 will neutralize my current outlook.

What will Stocks do in 2012?

Today is it for stocks in 2011, what will 2012 bring?

For the 2012 the Dow Jones is on track to close up 5.9%. The S&P 500 is set to close up 4 points which is only a .3% increase for the year, basically flat. The NASDAQ is down 37 points for 2011, down 1.4%. So what about 2012, how will stocks do?

It was a volatile year to say in the least. Volatility was high throughout 2011, with the S&P 500 climbing 9% at its peak, and falling 14.5% to its bottom. The CBOE Volatility index was up about 29% this year.

As for 2012, Mastery considers the opinion of Doug Kass. Kass was on CNBC earlier this week, here are his comments:
"I think the S&P will eclipse the early 2000 high of around 1,525 — in the beginning I think the market is range bound but by late spring and early summer I think we see (bullish) catalysts move the market." Best part is Kass believes the Occupy Wall Street will have a positive impact on stocks. Here is the video (commentary continues below):

Keep in mind fellow Masters Doug Kass was on the money for 2011 saying we would have a bunch of volatility, the market would trade sideways and the S&P 500 would finish the year almost unchanged.

Money Today - January 2012

Money Today - January 2012
English | PDF | 100 pages | 39.7MB

Money Today is a comprehensive, easy-to-read personal finance magazine that steers clear of the jargon that's common to money-related issues. Most important, it is utilitarian, offering readers clear tips on managing their money.

read it here

How To Strategically Default On Your Home And Live Scott-Free For Years

Millions of Americans have been sitting pretty in homes for years as they wait out the foreclosure process–for free.

The question is this: Should you?

It's something millions of home owners should think about, especially if the home they bought during the housing bubble is now worth far less.

Even when "strategic default" makes economic sense, many homeowners don't, simply out of fear and guilt.

There certainly are risks to weigh – a temporarily wrecked credit score for one thing – but draining cash with big monthly payments for a home value that might never return can be a big waste.

"A large number of Americans who are underwater on their mortgages would be better off financially if they walked away from their homes," says Brent White, a University of Arizona real estate expert.

"They don't because we have a double standard...individuals are told they have a moral obligation to pay their mortgages and corporations understand that contracts are to be breached when it's not economically efficient." (more)