9:55 pm - Market Outlook by Bill Wermine

Dear Traders,

Our next Traders Club meeting will be on Saturday 20 June in Penang at the Evergreen Laural Hotel from 10 to 1 PM.

Mr Pong, Head of Research for Jupiter Securities will present his market outlook for the KLSE and commodities , Martin will present his gold timing system for futures, physical gold and Am Precious metals fund.

I will play a video clip on bull riding, the most dangerous sport on the planet- (no rules, no steroids, no referee, and sometimes the result is death or crippling injuries to the rider) and we will have a group discussion as to how trading compares to bull riding.

If you have any questions or concerns about the markets, trading: please bring them to the meeting

When I started in this business in the 1970s, GM was the lead indicator for the stock market. GM' s direction was the direction for the economy and stock market. GM was the biggest and most influential company in America employing 10s of thousands of workers. Now GM is bankrupt and nationalized by the government.

It is a tragedy that bureaucrats will now keep GM on life support with taxpayer assistance and more bailout money.

Why can they not cut their losses and move on ?

GM is yesterday's story as manufacturing in America is now in decline.


Today's story is Goldman Sachs. Goldman Sachs is the King of Wall St. Goldman Sachs controls the levers of finance for the US and much of the developed world with tenticals reaching into the Federal Reserve and US Treasury. They have unlimited resources and political power. Even Obama will not challenge them.

As Goldman goes so goes Wall St and the rest of the world markets including the KLSE.

Goldman is channeling high-powered money into crude oil, commodities and stocks in concert with the Federal Reserve who is monitizing US debt. Other central banks in the world including the UK, Japan, Switzerland, the Euro Zone are all engaged in a money printing orgy as traders bid up the price of copper, gold, silver and any commodity that can not be printed by a central bank.


For now I like RSX, the Russia ETF which has many resource companies, DBB , the base metal ETF and SLX, the steel ETF fund.

Also for the local market be very vigilant with your positions and continue to focus on quality dividend issues. AND I MEAN QUALITY ! Make sure you define your risk and profit objectives with these.

Attached is an article I wrote for Malaysian Business about commodities last month. It still applies.

Have a profitable week
Bill