May 7 2009

Good Morning All,

Markets have continued to soar well past the breakout number of S&P 870 and brought us closer to yet another resistance level in the 940's. The release of the delayed "stress test" results will take place at the close of business today and this much discussed news may well be used as an excuse for profit taking. Contrarily it may also be used as a starting point for my much vaunted "blow off" rally. The question will be answered shortly, so we will watch today's action with great interest.

As readers are aware, the enclosed list was first published last November/December but it is not a complete view of my suggestions. There have been and continue to be countless other plays, the most important of which are sector ETF's. In the U.S. the FAS and FAZ best represent the bull and bear financials, while the TNA and TZA accomplish the same thing for the small caps.

Commentary

Just a brief mention on the Rove/Cheney view that torture was not just an acceptable practice but an effective one. In the post WW ll period, the Nuremberg trials did not try privates and non-commissioned officers; they went after those who developed and orchestrated the policies of the" holocaust". We are not suggesting that the deeds are similar, even though 4 million displaced Iraqis might disagree; we simply wish to point out that the only people doing time for the crimes in Abu Ghraib and other locations have been the foot soldiers. Those who rewrote the U.S. Constitution have gotten off scot free.

One of the worst decisions ever made by an American President was Gerry Ford's pardon of Richard Nixon; this pardon did not heal America; the wound it left has since festered into the manifestations most recently seen in the Bush administration...we can do anything we like because we will be pardoned....This is precisely why Obama needs to convene a bipartisan investigative committee....this present "reverse Nuremberg" must not be allowed to continue.

And while I am on my anti-libertarian rant...what is wrong with the fact that the wealthiest 2% of Americans pay 80% of the income tax collected; after all they own 80% of the wealth. See the list below and you may join them.