The Leong Side of the Market

Mining Drives Speculative Trading

By Friday, January 14, 2011
China is hungry for metals, whether we’re talking copper, iron or aluminum. So is Europe…and, in fact, the rest of the industrialized world. We are seeing an insatiable building up for mining companies, whether early-stage or in production. The interest is in mining the metals in the ground.

The Stock Market & Economy:
My View on 2011

By Wednesday, January 5, 2011
In 2010, small-caps were the runaway winners, with the Russell 2000 closing up 25.28%. Technology also provided some decent gains, with the NASDAQ up 16.88%. Lagging were the blue-chip DOW and S&P 500 companies, which ended up 11.02% and 12.74%, respectively. U.S. stocks outperformed the Chinese Shanghai Composite Index (SCI), which closed down 14.31% following stellar gains in 2009.

Is (the) Santa Claus (Rally)
Coming to Town?

By Thursday, December 23, 2010
Merry times are here. We’re happy. You’re happy. Wall Street is happy. With the gains on Tuesday, the Santa Claus Rally appears to be in place, as long as we see gains in the last five trading days of the year, followed by the first two sessions in January. Historical records indicate that stocks have increased an average of 1.6% since 1969, according to the Stock Trader’s Almanac.

Wrapping up 2010: My End of Year Commentary

By Wednesday, December 22, 2010
Santa appears to be on his way. We’re not there yet, but let’s hope it’s soon. The charts of some of the key stock indices continue to look positive and point to more potential gains after the break at the previous chart tops. I’m encouraged by the ability of the major stock indices to edge higher after breaking the previous chart tops.

Markets to End Year Higher,
but Down from 2009 Gains

By Monday, December 20, 2010
Markets will end up higher this year, but well off the gains of 2009. On the plus, the S&P 500, NASDAQ and Russell 2000 are holding above their previous chart highs, while the DOW is off 0.05% below its previous chart high. Failure to hold above the previous highs could drive selling in stocks to a sideways channel.

Don’t Forget About the Debt Crisis
in Europe

By Friday, December 17, 2010
Traders appear to have brushed aside the mounting debt and deficit issues in Europe; but, be warned, these are not going away anytime soon. At least, that’s my opinion.

The Downside to China’s Massive Growth: Inflation

By Thursday, December 16, 2010
China is continuing to expand at rates well beyond the world’s other industrialized powers. The Organization for Economic Cooperation and Development (OECD) predicts that China will grow its economy by 9.7% in 2011 and 2012, which, while lower than the previous rates, is still well above the global average of 4.2% and 4.6% in 2011 and 2012, respectively. In the third quarter, China’s GDP increased 9.6%.

A Strategy You May Want to Use in the Weeks or Months Ahead

By Wednesday, December 15, 2010
Markets are continuing to edge higher after breaking above the previous chart tops, which is technically bullish. The DOW is 0.67% below its chart top, but I suspect this will be broken. The break above the previous chart high may be sustainable, but failure to hold could leave stocks vulnerable to downside weakness.

Gold Prices Heading up for 2011?

By Monday, December 13, 2010
Gold has edged higher in each of the past nine years, and it is set to close off its decade-long bull market. Buying has been driven by a combination of speculative trading in physical gold, gold ETFs, and buying as a safe-haven investment.

Where to Find Some Market Excitement

By Friday, December 10, 2010
Chinese stocks are again the focus of increased attention and speculative trading. In China, the benchmark Shanghai Composite Index (SCI) was rallying and was down less than four percent this year, which is impressive given that the index had been down over 28% earlier in the year. Unfortunately, fortunes have turned, as there has been selling in Chinese stocks. The SCI is currently down 14.25% on the year. But .
Sep. 5, 2015
Trailing 12-month EPS for Dow Jones companies (Most Recent Quarter) $1014.15
Trailing 12-month Price/earnings multiple (Most Recent Quarter)


Dow Jones Industrial Average Dividend Yield 2.62%
10-year U.S. Treasury Yield 2.19%

Immediate term outlook:
The bear market rally in stocks that started in March 2009, extended because of unprecedented central bank money printing, is coming to an end. Gold bullion is up $1,000 an ounce since we first recommended it in 2002 and we are still bullish on the physical metal.

Short-to-medium term outlook:
World economies are entering their slowest growth period since 2009. The Chinese economy grew last year at its slowest pace in 24 years. Japan is in recession. The eurozone is in depression. With almost half the S&P 500 companies deriving revenue outside the U.S., slower world economic growth will negatively impact revenue and earnings growth of American companies. Domestically, America’s gross domestic product grew by only a meager 2.3% in the second quarter, which will negatively impact an already overpriced equity market.


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From: Michael Lombardi, MBA
Subject: 200% Profit on the Ultimate "Fear Gauge" Play

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