Cramer On Obamacare

Cramer thinks the chances of a selloff are much higher now that it looks like Obama’s healthcare plan is going to pass, and it might include a higher tax on capital gains and dividends. James Cramer suggests upping positions in GOLD & Foreign stocks to 10% & 30% of one's portfolio, respectively.
CNBC's Kudlow Report 3/18/10

What To Do?

      What to do? I bet most of you are asking this question after listening & reading market analysts and managers opinions on the current market conditions. Should you take profits or not? Buy gold, sell gold, will the dollar go up or down? Lets simplify things, the CBO numbers today was go for Obamacare to more than likely pass the House this weekend. Now 72 hours have to pass before voting, meaning this Sunday. Then on to the Senate and most likely to the President's desk. However, you may see the Supreme Court get the last word on this process. But setting aside politics, if this as it appears to be, does pass, what will it mean to the markets? Itz believes that in the short term it will end uncertainty and rally the dollar, which means lower equity & commodity prices. But longer term the nearly $1 trillion dollar package means higher defecits and a lower dollar.
Do you act tomorrow before the possible vote or wait until Monday?
Itz posted on Twitter today to use the KISS method...Keep It Simple Stupid, meaning watch the S&P500 and the 1150 level. Being cautiously bullish, use that support as a sell signal. Itz upside target on the $SPX is 1200-1250, one may also consider writing covered calls against any positions, OTM April's.
Just keep in mind that the Healthcare package  still needs a handful of votes in the house, they gained 3 yesterday..BUT lost 2 today. Also, in a few weeks, expectations of a huge Jobs Report number will be a significant market mover. After all it appears that the US economy is recovering and earnings is what its all about.

Higher Rates Maybe Bullish For Stocks & Commodities

Dennis Gartman believes market is wrong on commodities & higher rates.

GLD Going Parabolic

The gold trade is getting crowded and looking at the GLD chart, you can see the parabolic move now. My concern is that if some geopolitical &-or financial event as back in March occurs...you could see a rush to the dollar again?? If so how would gold react? My view now is to get hedged or start lightening up on gold if you're heavily weighted in this sector. If investors and traders bail on the metals, the correction could be severe, just be ready!
*click chart to expand image

Gold Trend Higher

A look at the shorter term oscillators show that Gold or in this chart the ETF GLD is nearing a BUY signal.
The longer term view is more positive for the price of $Gold as the U.S. economic
policy situation is so negative. The Obama administration will take action in an attempt to bolster its collapsing political power. Also, Fed Chairman Bernanke is in re-election mode as his appointment as Chairman is up for renewal in January. All in all, these factors mean more U.S.gov't spending and the Federal Reserve monetizing the U.S. deficit created by that spending. The Federal Reserve has no choice but to move toward direct financing of the Obama Deficit. Bottom line Gold will rise as money is "printed"!
*click chart to expand image