Sunday, January 24, 2010

Index Data

Closing values for Friday, January 22, 2010:

Trend & Value 50:

1017.54 (down 1.90%)

Foreign Blend:

6469 (down 114 pts)

China Small Cap ADR 25:

935.71 (down 3.83%)

Large Cap Dividend Top 50:

1022.15 (down 1.83%)

Precious Metals Complex:

4519 (down .10%)

General Liquidity:

1006.49 (down .85%)

BRIC Basic Materials:

954.79 (down 2.27%)

Wonder Dogs:

381.74 (down 1.66%)

Leaders of the Pack:

802.80 (down 2.65%)

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Yet another down day across the board on Friday. On the one hand it looks like selling pressure is starting to wane (notice the Precious Metals Complex nearly broke even) but I see that my General Liquidity Momentum Indicator dropped into negative territory for the first time since I started tracking it:



I think we are pretty over-sold in the near-term, but I also see the potential that the past couple weeks are the beginning of a major shift away from the pro-liquidity leadership that prevailed for so many months. The focus now should be to protect capital while trying to identify quality assets that either offer potential to buck the bear, or that have been sold off irrationally during micro-panics like we have seen recently. There is no point in rooting for deflation if you aren't going to take advantage of it and buy the value that it generates. The successful investor from here has a surplus of two things -- Cash & Patience.