Top Stocks Keep Spending Alive

What a wonderful time to be alive! Never has it been easier to feel superior to our fellow man! So many dopey ideas...so many preposterous delusions! So many fools...so eager to part ways with their money!

We have to pinch ourselves occasionally...and remind ourselves that it is real.

Yes, after the real estate bubble burst, we thought the fun might be over. But no! In come the feds. As you know, what brought about the housing bubble was a sort of madness that caused people to do the damnedest things with their money. But now, the feds are doing even stranger and crazier things!

Actually, we were happy to see the bubble blow up. Spending more than you make is hardly a formula for wealth-building. All in all, we figured our countrymen would be happier, over the long run, if they started saving their money rather than squandering it. Besides, we liked seeing Wall Street getting whacked - those clowns deserved it.

The savings rate in the United States is rising quickly. We reported the falling balances in credit card debt last week. And the last figure we saw showed the savings rate had jumped from about zero to over 3%. Our guess is that it is headed back to about 10%. That's about where it is "supposed" to be.

But thank God for the feds. While the imperial citizens sober up...their government builds a still. While citizens save 3% of GDP, their government spends 15% - and more.

The feds' budget deficit for March alone would have been enough for an entire year during Reagan's...or even Bush's...term. At $196 billion, it is the monstrous fruit of crashing tax revenues and soaring government expenses.

Just a few months ago, we were talking about a $1 trillion budget deficit. When the discussion began, most people refused to believe it. How could the government - in good conscience - spend $1 trillion it didn't have? Here at The Daily Reckoning, we guessed that the deficit would go to $2 trillion. Not that we'd done any calculations...it just seemed to us that people consistently underestimated both the downward pressure from the bear market and the upward pressure from the politicians. The bear taketh away. The jackasses giveth. Well, at least they're trying, right? Of course, we'd all be a lot better off if they didn't do anything. But then, it wouldn't be so much fun to watch.

The total committed to this bailout campaign is now said to be about $13 trillion. Let's see, that's more than $100,000 per family. Better start working on your own 'personal bailout' sooner, rather than later. We have all the tools you need to get started in our "Emergency 'Personal Bailout' Bundle" which you can find here.

It's the "Theft of a Nation" says Stewart Dougherty:

"The United States of America, or, more precisely, the American people, are said to own 261 million ounces of gold, supposedly stored in the same Fort Knox vault that Goldfinger found so appealing. At $1,000 per ounce, the people's gold has a value of $261 billion dollars. TARP 1 alone has cost 270% of the entire value of that singular, tangible American asset. The total $13 trillion bailout cost thus far is 4,980% of the value of America's gold asset. Fort Knox has been robbed..."

They're squandering $13 trillion...or nearly 49 times the U.S. gold supply. But heck, it's worth it. The whole thing is very entertaining now...and will be hugely instructive in the future. When this is over, the next two are three generations are sure to say: well...we won't do THAT again!

And with that, we turn to Addison, who tells us of a strange new trend for the greenback:

"Last week, stocks market capped off their best rally since 1933," writes Addison in today's issue of The 5 Min. Forecast.

"The S&P 500 rose for the fifth straight week, now 27% off its low in early March. You'll have to go back to the Great Depression to find a 23-day rally that sizable.

"Thursday alone, the Dow ended up 3.1% - back above 8,000 for the first time since early February.

"And with this historic run, we see a peculiar new trend for the US dollar. Observe:


"On Thursday, however, the dollar rallied big right along with top stocks. Today, the Dow opened down 100 points...and the dollar index dropped nearly a point. It's a curious trend developing with this 'sucker's rally'. When it sputters...and the dollar plays along...look out below."

Each weekday, Ian and Addison bring readers the The 5 Min Forecast, an executive series e-letter that provides a quick and dirty analysis of daily economic and financial developments - in five minutes or less.

The 5 is a free service to subscribers of our paid publications, including the newly relaunched Richebächer Letter. Dr. Kurt Richebächer could often be found in the pages of the DR, or his newsletter, The Richebächer Letter, calling for the demise of the dollar...along with the collapse of the housing market and the end of the over-extended American consumer, as far back as 2000.

Many of you felt the void left by Dr. Kurt Richebächer when he passed away in 2007, so in his honor we've formed a brand new 'wealth protection' society. For a short time, we'll waive the membership fees to the Richebächer Society - but only to those who act before April 20, at 5 PM. Get all the information here.

And back to Bill, with more thoughts:

We are still a bit stuck on the $13 trillion price tag for these bailouts.

Makes you wonder where former Fed chairman Paul Volcker, who was tapped back in November by Obama to head the President's Economic Recovery Advisory Board, is in all this.

Our friend Barry Ritholtz was pondering the same thing in a post on his blog, The Big Picture.

"If you want to know why the administration's approach to the credit crisis has been lacking, and why the Obama bailouts looks surprisingly like the Bush bailouts, consider this: No Volcker."

Barry mentions an interesting WSJ piece that points out that Paul Volcker was put at the head of an advisory board that has yet to meet. Says the WSJ:

"'Paul was surprised' at the failure to consult him, particularly on issues of financial rescue after his dominant role in resolving financial crises in the 1980s, says one person who has spoken to Mr. Volcker recently."

"To review," writes Barry, "You have access to the greatest Fed chief in history, and you are choosing not to use him during the greatest crisis since the Great Depression."

Our sentiment exactly.

A dear reader poses a question:

"...if you were a single mom, with a little cash & metal in a QRP, who had cut her expenses very, very low, who is staying home to take care of her own children and do contract work to get by AND save a little...what else should I be doing? Move to the country or should I move out of the states?

"Invest in shoes and underwear for my kids now pre-inflation, prepare for self defense, food storage, learn to grow vegetables...I am doing these things, but I just can't get myself to feel 'safe.' I am scared witless because I am afraid, not of a depression...that I can survive...I grew up really poor, but I am scared of the chaos that will ensue and the political/military escalation that will follow that...now that is what keeps me up at night

"What would you tell your Mom or your sister to do? I am really not feeling very well about all of this. How can I get to where I feel safe? I am thinking maybe the Appalachian Mountains or something. The government terrifies me."

What would we say? "Hmmm..." we would probably begin. "As to the financial crisis, we can provide some ideas."

But our reader seems to have already gotten the gist of them already. For the benefit of other readers, the central banks of the world have failed to do their jobs - to provide the world with sound, reliable money. This means that we each have to be our own central banker - stocking a supply of gold against the inevitable collapse of paper currencies. It is as if we couldn't trust the power company to provide electricity. We have to have a portable generator on hand - just in case. We like to have some gold...just in case.

But our reader has an even deeper fear: that we can't trust our government to provide security either. Security is the main reason governments exist - that, and larceny. Nevertheless, they don't always do a good job of providing security. In fact, they tend to fall down on the job often - usually when security is most needed. Most of the time, not much security is called for. People get along, more or less. Most people wouldn't kill their neighbors - even if they thought the cop on the beat could be bought. But occasionally, they get an evil urge and you need someone to step in with a blackjack and a pair of cuffs.

But government can be a source of insecurity, too. One security team attacks another from time to time. And occasionally, the security providers attack the people for whom they are supposed to be providing security. Here in Argentina, for example, there have been few genuine threats from the outside - at least not since the emperor of Paraguay, goaded by his Irish mistress, made a mad bid for control of the country in the mid-19th century. But in the 1970s, the government decided it had quite a few people it would rather not have. They were "disappeared." No doubt, many who were not disappeared were glad to be rid of them. They were troublemakers. But our reader seems to be afraid that she may among those who are disappeared from the United States in the next go-round of violence...or maybe just that she will be caught in the crossfire.

The odds are probably against it. But who knows?

"America: a super-power no more," says a headline at the Christian Science Monitor. Empires come and go. They don't always go easy.

Lately, we've been thinking: There are only three important decisions you make in life: what you do; whom you do it with; and where you do it.

Buenos Aires is a big city with many different neighborhoods. Your editor is staying in the Palermo Soho area.

We have lived in many different places and visited many more. We don't recall ever seeing a place that seemed so delightfully lively and convenient. The cobblestone streets are flanked by buildings of only one or two stories. Some have Belle Epoque or classical facades. Most are more modern with all manner of style - but leaning towards the contemporary chic. It's a neighborhood blessed by a lack of urban planning. Houses, apartment building, high-fashion shops, bars, supermarkets, restaurants, auto repair garages - you can find them all in a single block. The sidewalks tend to be rough; they've been patched, neglected, repaired, and overlooked for many, many years. There are also many trees - from the stately old sycamores on Thames Street, to many smaller, newer varieties we can't identify.

Within a block or two of our hotel there are dozens of eateries - from simple pizza parlors to very serious restaurants. The weather is perfect this time of year, so people sit outside all day long. They take their coffee in the morning...then lunch slides into mid- afternoon...and dinner slips all the way to 10 PM. Nightclubs open after midnight. By the time your editor is waking up, the revelers are still wandering the streets.

We went to lunch on a street corner near the hotel. The place was what Argentina is famous for - a steak restaurant. The restaurant had put a roof over the sidewalk and placed tables and chairs under it. We dined on white tablecloths...and watched people ambling along...mostly families with young children and some tourists. It was so agreeable...we wondered why we remained in Europe, where it is twice as expensive...and the weather is twice as bad.

Day and night, people walk the streets...shopping...going to cafes and art galleries...

This morning we heard a flute. It sounded like Pan calling to the water nymphs. A man rode slowly down the street on a bicycle onto which he had fashioned a grinding wheel for sharpening knives. The flute was his way to let people know he was in the neighborhood.

A woman washed the sidewalk on the other side of the street. She has a shoe store, with a big blue arch on the roof. The window displayed what we would call "tennis shoes," even though they're not really for playing tennis. They're replicas of the kind of shoes we wore in the '50s and '60s...Keds...or Chuck Taylor's All Stars...with rubber soles and canvas uppers. Now, they must be in demand. Every shoe store has thousands of them, in all colors - from fuchia to silver lame.

"Why not move to Buenos Aires?" we posed a loaded question to Elizabeth. It went off immediately.

"Are you crazy? We moved from the United States to Europe. We've already gone through that once. Have you forgotten how hard it was to figure everything out? Finally, after all these years, we have friends...we have things to do...we have things set up the way we want. Well...almost the way we want. Even after 15 years, we're still not totally settled.

"Why would you want to go through all that again?"

"I'll get back to you when I have a good answer," we said in retreat.

One final thing. We're headed up into the mountains. You won't hear from us for a week, but we leave you in the hands of Kate Incontrera and the rest of the DR contributors.

Tales from a Bankrupt Economy

"Pssst...hey kid... You, in the red robe...

"You're just graduating from college, right?

"You wanna make some real money?

"Then, rush to Detroit. Set up a law firm specializing in bankruptcy."

More advice to college graduates follows...(below)...

Two auto-parts suppliers have already filed under Chapter 11. GM is expected to do so momentarily.

Too bad about GM. It was set up in 1916. If it had been able to hold together for another 7 years, it would have gone 100 years without having to declare bankruptcy.

All people die. All companies die, too. That's why 'buy and hold' is wishful thinking. Buy and hold long enough and you are sure to go broke. And die.

Eventually the undertakers and bankruptcy lawyers get you. And today...business is good in Detroit. What cleared the way for the GM bankruptcy was a deal with the bondholders...in which they take equity in exchange for their debt and agree not to contest the bankruptcy filing. Still, the deal - and other deals relating to it...including the presence of one very big and very odd shareholder, the government of the United States of America - is so complicated, it's bound to give bankruptcy lawyers plenty of work for many years.

But business seems to be picking up everywhere...at least, that's the impression you get from reading the paper. The war against capitalism seems to be going pretty well, in other words.

Yesterday, the rally continued on Wall Street, with the Dow up 103 points. Oil rose too. It is trading at $65 a barrel this morning. And look at gold - the old yellow metal is at $963 and still going up. We wouldn't be surprised if this trend continued.

Does this mean the feds are winning the war?

"Signs of life return to California stocks market," says the Financial Times.

Houses in many areas are selling for 60% less than they did two years ago. Two years ago, the average family couldn't come close to buying the average house. In didn't take a genius to figure out that that couldn't last. Who were they going to sell the average house to if not to the average family? Well, now the $600,000 dump from '07 has been foreclosed and is now on sale for $200,000. That means that the average family that still has a job can buy it.

And it doesn't hurt that the feds make it easier - distorting the stocks market with an $8,000 tax credit and EZ financing from the FHA.

Wait a minute! Wasn't it easy financing that got us into this mess? Of course it was. But that little insight doesn't stop the feds. They're convinced that if they can just put out enough new credit, it will somehow make the problems caused by having too much credit before go away.

So here's the deal. You can get the FHA to finance a house, long-term, at just 4.9%. That's just 0.3% higher than the long-term Treasury yield. Even without opening the closet door, we smell a rat. How can lenders expect to make any money - after delinquencies, defaults, foreclosures, resales...to say nothing of legal and administrative work - on a 0.3% margin? And that's assuming their cost of money is the same as the feds' cost - the long term T-bond rate.

Maybe they should read the paper. John Authers, writing in the Financial Times:

"The latest US mortgage delinquency figures are horrendous, with more than 6% of prime mortgages in arrears - more than double the long-term norm. A quarter of sub-prime loans are delinquent."

And although one in 6 homeowners is underwater...

"The peak of foreclosures has yet to come,' Harvard historian Niall Ferguson adds. 'They will go from 40 percent of all home sales to literally 100 percent by the end of the year.'"

Well, the bankers - as everyone knows - are a lot smarter than we are. They're probably up to the old trick: borrowing short, lending long. The spread between the long rate and the short rate has never been great. We explained why yesterday. The Chinese don't trust Tim Geithner to keep his word. For that matter, neither do we. They've switched from buying long bonds to buying short bills. So, the bankers - including those working for the FHA - can borrow very cheaply in the short-term stocks market of 2010. And they can make cheap mortgage loans, long-term. And then, when the short rates go up...and they need to roll over their short- term loans...they can get in line at the courthouse, behind GM and the parts manufacturers...

..and pick out a gaudy casket too.

Now over to Ian with some more news from today's 5 Minute Forecast:

"As we prepare to wrap up the month of May, one thing's clear: Commodities are back, baby.


"That's a 12.3% monthly move for the CRB, an index that tracks most of the world's heavily traded commodities. The stars have aligned in the favor of hard assets this month: Global investors are collectively more optimistic. There's a strong reboom vibe emanating from BRIC nations (see below). And perhaps above all, there's this:

"After falling through its 200-day moving average earlier this month, the dollar index has been in steady decay. The index crashed through another important level this morning -- the 80 score, a long-standing point of support. Will the greenback fall further still? Barring the top stocks market reversal and flight to safety in the dollar, or some kind of wild government intervention (both totally possible), we don't see what's keeping the dollar from testing 2008 lows."

Every business day Ian Mathias writes for The 5 Min Forecast, an executive series e-letter that provides a quick and dirty analysis of economic and financial developments - in five minutes or less.

It's a service available free only to Agora Financial's paid publication subscribers. And in the next few hours, one of these publications, Energy & Scarcity Investor, is set to release an exclusive report that could make you gains upwards of 15,000% in less than 2 years.

Now, that might sound crazy, but isn't worth 10 minutes to judge for yourself?

Click here for all the information. But act now. This report expires at 5 PM today!

And now back to Bill with some more thoughts:

Jobless claims eased for the second week in a row. Hallelujah. The economy is still unloading jobs, but at least its not dumping them like it was earlier in the year. Which leads a number of economists to the old refrain: 'the worst is behind us.'

Meanwhile, from Japan comes encouraging news. The Nippon economy is increasing its industrial output at the fastest pace in 56 years. And oil is signaling a global rebound, isn't it?

"I don't think so," says MoneyWeek's editor in Paris. "There is no increase in oil consumption. Instead, consumption is still going down. What we're seeing is speculation. The central banks are adding to the funds available for speculation. So far, that money isn't reaching the consumer economy...it's mostly in the natural resources market betting on inflation."

Everywhere you look, dear reader, is a war zone. Nothing is safe. The feds' war against deflation does collateral damage to almost everyone and everything.

But you have to give the feds credit. Raw materials...gold...oil...emerging stock markets - all have seen big increases. Top stocks market too are showing big gains.

But the feds' plan is not to reflate the asset bubble, but to reflate the economy. For that, they need rising consumer prices. Consumers need to borrow...and spend. They'll do so, say economists, when prices rise and their dollars lose value. So far, milk and potatoes aren't cooperating. The price of milk fell so low that farmers slaughtered their herds. As for potatoes...we don't know.

In Europe, inflation has disappeared. This is the first time the euro zone has ever had flat and falling prices. In America, too, consumer price inflation is ebbing away.

In other words, the feds may be winning a battle but losing the war!

As usual, there's a lot of smoke and fog on this battlefield. Consumer confidence is rising...but so is unemployment. The New York Times says US joblessness may soon pass Europe's habitually-high rates. The Chinese are still buying America's debt - but only the short-term stuff. America's biggest industrial company goes broke...the government takes a key role in key industries...but investors buy more top stocks for 2010!

If you look through your binoculars you will have a hard time figuring out who's really winning. In the confusion of the battlefield, even a hardened veteran often fails to tell which way the fight is going. In fact, you might see rising stock prices of 2010 and get the wrong idea...like watching the Yankees get chased back to Washington after the first battle of Bull Run; you might have thought that that was all there was to it. The war was over and the South had won.

 

Not quite.

Last weekend, we journeyed to Boston to attend a college graduation. Thousands of callow scholars were on display. Each was handed his papers...and then marched out of the hockey stadium. To the tune of 'Pomp & Circumstance,' wearing a long, red robe, he entered the outside world solemnly...like a patsy joining a poker game.

So far, not a single major university has asked us to make the commencement address. Nor a minor college. Not even a school of cosmetology or taxidermy. But here at the Daily Reckoning headquarters in London, protected by a broad ocean and a narrow reading of the First Amendment, we will give them - and UK graduates too - advice no one asked for.

"Plastics," was the advice given to college graduates in Mike Nichols' '67 film. But that was when there was still hope for America's manufacturing sector. Even then, it was too late. The percentage of GDP from the manufacturing sector fell for the next four decades, from over 20% in the last '60s to barely 12% last year. Better advice would have been 'derivatives.' They stank just as bad, but they were much more profitable. While only 8% of GDP, finance accounted for 40% of corporate profits in 2007. And derivatives grew from nothing to a face value of 16 times the GDP of the entire planet.

But your elders are always giving you bum advice.

"You cannot decline the burdens of empire and still expect to share its honors," said Pericles to the class of 430BC. He lived during a time not unlike your parents' era in the USA - when Athens was on top of the world. But vanity got the better of him. He launched an attack on Sparta that backfired badly. He soon died of plague and Athens was not only ruined, but enslaved. Athens' 'golden age' turned to lead. Young Athenians should have shrugged off the burden rather than accept it. You should do the same.

When you were born 20-some years ago, the nation's total debt per person was less than $90,000 - adjusted to '09 dollars, of course. While that was a lot of money, it was nothing compared to what was coming. Now it's $186,717 per person - more than twice as much, in real terms. Fortunately, private debt is not inheritable. But it comes to you as a lien against property. Instead of paying off their mortgages and leaving you a house, free and clear, the baby boomer generation spent the 'equity' in their houses even faster than they got it. House prices rose. But mortgage debt rose faster. While your grandparents owned 80% of their houses, by 2007, the typical homeowner only really owned 4 rooms of an 8-room house. And then, when house prices fell, so did his remaining equity...to the point where one out of six homeowners in America is now underwater. You could still eventually inherit a house, but you may have to scrape the barnacles off the front porch.

But that's not even the half of it. While your parents had control of the US government they allowed themselves a little larceny. Add the unfunded retirement and healthcare benefits they voted for themselves to the official national debt, and together they are scheduled to cost your generation 4 times the total annual output of the US. This is over and above the private debt they accumulated.

Some of this debt can be carried. Some will have to paid down. But as it stands, as much as $77 trillion of post-'09 earnings must be stolen from the future in order to pay for the liquor your parents drank...the bombs they dropped on god-forsaken foreigners...and the interest on their debts. So, forget about saving for a European vacation or a house of your own. Even if every penny of your savings - and every other American's savings - are put to the task you will still be paying for your parents' expenses all your life.

But wait, there's more! The burden is getting heavier. Federal budget projections show an additional $7 trillion in deficits over the next 10 years. Described as the cost of fighting recession, the present generation buries its own mistakes under cash that the next generation hasn't even earned yet. Today's bankers, businessmen and speculators are being bankrolled by you - tomorrow's bankers, businessmen and speculators. Today's homeowners get a helping hand...from whom? Tomorrow's homeowners - you. Today's employees get a boost too. Same story. Where do you think the money came from to pay Wall Street bonuses this year? How do you think GM stays in business...and Fannie Mae...and AIG... Who pays those salaries? Who pays to keep troops all over the world and keep old people supplied with new drugs? Who pays for hundreds of billions' worth of 'shovel ready' boondoggles? You will. At least, that's the plan.

The luck of one generation is the curse of the next. Like Pericles, your parents inherited a dollar; they leave you a peso. They took over the strongest, richest, most competitive nation in the world. And like Pericles they minded everyone's business but their own. Now, not only does the US owe money all over town, its government puts out trillions more in IOUs every year - each one with your name on it. You're not even out in the real world yet, and you're getting the bill for 50 cents of every dollar the feds spend - almost none of it earmarked for you. But that is the thing about the real world your teachers probably forgot to tell you about. It is more unreal and fantastical than anything you studied.

Here's what's real: You've been dealt a bad hand. From the bottom of the deck...your parents have slipped you some nasty cards. Our advice? Fold 'em. Get up from the table before they clean you out.

Stocks Rally Again

MARKET SUMMARY
         > >From "The Daily" at InvestmentHouse.comStress test, jobs report no obstacle to a further rally.

- Stress test medicine is painless, jobs report within tolerance, 2010 stocks rally again.
- NASDAQ gains ground but techs are struggling. After the stress test and jobs report the financials need to find more near term buyers.
- Massive liquidity, 'chase money' fueling the stocks market of 2010 rally, but a poor bond auction and bond rates forecast the problems ahead.
- A lot of enthusiasm over poor economic data versus a lot of pessimism over truly improving economic data.
- Liquidity means more stock market gains but near term techs have to prove themselves again and financials have to continue to lead.

Market Summary (continued)

Financial institutions that did not 'pass' the stress test, 9 of the 19, are engaged in the next rush, the rush to raise their own capital, non-government assisted, so they can cast off the TARP. The Treasury surprised us all this week when it announced that any institution could repay the TARP and throw down the government yoke when it can raise needed capital without the government backing. Thus a lot of bond issuances were announced Friday. Banks that were basically forced at gunpoint to take the funds are showing how much they detest the governmental interference.

The jobs report was also quite palatable at -539K versus the 610K officially expected, though the whisper was in the -550K range. March was revised to -699K, however, so the April number was really at expectations. That was not worse than expected, however, so that was enough to keep things going. Of course the unemployment rate hit 8.9%, already topping the Administration's estimates on the peak for this downturn. Moreover, the improvement in the overall number was due to growth in the federal government with the hiring of census workers. Now THAT is real improvement in the jobs picture. The real story is in the temp workers. Temp workers are the first to get hired in a recovery as companies gingerly get back into hiring. If things work out they make those temps permanent offers. At +68K temp hiring is still very anemic, indicating no improvement in hiring. That is nothing unusual. The economic numbers, as discussed below, are still pathetic and you would expect hiring, a lagging indicator, to remain muted at this point. It is.

Nothing was stopping the move higher, however. There are reasons for that as discussed the past week and later in this report, but it was not all upside. Best tocks of 2010 again gapped higher but that move did not hold and NASDAQ was negative by midmorning. At that point, however, the buyers moved back in and it was upside for the rest of the session with best stocks for 2010 rising back to the morning highs and beyond, at least on SP500 (+2.41%). SOX closed down almost 2%. NASDAQ 100 scratched out a 0.3% gain. Gains again but there are some cracks. Of course thus far cracks have been filled by liquidity.

Chart by StockCharts.com

APC (Anadarko Petroleum)
Company Profile
The Fed's massive liquidity injection the past 9 months is finally having its impact in the best stock market of 2010.  When that much money is put into an economy, indeed the world economies, it eventually starts impacting best stocks for 2010.  Not necessarily because the economy is taking off; despite what the financial stations are saying the data says it is not taking off, just slowing the plummet toward a second Great Depression.  No, a big part of what is happening now is that all of that money is moving into financial markets just to put it somewhere as there is not enough economic activity or stimulus to absorb it.  That is what ultimately ignites inflation.

Thus you see best stocks for 2010 related to potential inflation starting to take off.  Energy stocks are some of those best stocks 2010.  After moving laterally for a month they set up good patterns and started to breakout.  One we were watching was APC in the natural gas area as natural gas prices will rise with the inflation as well.  So when we saw it break higher we put it on the report, looking to catch a test of this initial move as we did not get it on the break from the pattern or while it was in the last stage of the base.  A test is one of our favorite entry points because it gives us a good entry point after a stock makes its break and it shows us that the buyers still want it, i.e. it is not just going to crash back down on us in a false breakout. 

APC surged higher another session but then on Tuesday it tested the move, tapping the 10 day EMA on the low and starting to bounce. The 10 day often acts as a near support level on a breakout, and when we saw that move we entered the best stock at $45.64 and bought some August $45 strike call options at $5.10.  We wanted some time as these 'reflation' moves can last for a significant period, and moreover the only other option was a June option and that is not enough time to counteract the effects of time decay. 

We caught it right because APC started to rally anew the next session, gapping higher and adding $2.78 to $48.26.  Gapped again the next session but struggled some, closing off the high for a modest gain.  Given the best stock had already tested the break higher we were not too worried about that gap to nowhere.  Then Friday APC was at it again rallying $3.24 to $51.96, hitting $52.38 on the session high.  That put APC at one of its former upper channel lines from the October to January move, and it was our initial target for the move.  We banked half of the best stock at $52.28, locking in a 14.5% gain.  We sold half our option position for $9.50, banking $4.40 per option or 86%. 

Strong move in less than a week and APC may retrench some after that move, but with the market in a liquidity mode you can expect more money to come into these areas and best stocks for 2010 such as APC to continue their move higher for now even if the economic recovery theory proves to be wrong given that the inflation seeds being sown are serious.

STOCK SPLIT PLAY

Playing stock splits can be very profitable, but it takes know-how. Our stock split service focuses on three main types of plays:

1) pre-announcement (where we forecast an upcoming split prior to the company making the announcement); 2) pre-split (these plays are made in the days leading up to the actual split day); and 3) post-split plays (plays made after the actual best stock split where the best stock of 2010 is showing continued or renewed strength).

For post-splits, we can play them as we would pre-splits (very short term), but we prefer to stretch our horizons, playing the trend. When playing options, we look further out, 2 or more months at least. We let the trend carry us along if there is one, but we will also take profits if the technical pattern degenerates, e.g., breaks a trendline. The main difference between post-splits and pre-splits plays is that we really have to like the pattern. Pre-splits can run right before their splits even with poor technical indicators. For post-splits, we are looking at the best stocks for 2010 from more of a longer term "would I buy this stock at this juncture?" position. Now there are times when a hot stock splits and investors pile in to get in while the stock is 'cheaper.' We play those, but with more of a short-term, pre-splits mentality in that we will be ready to get out fast if the momentum fades.

Remember, everything we do has to pass muster with the market that day ... don't fight the market on these plays.

SPIL (Siliconware Precision--$7.28; -0.02; no options): Chip equipment
Company Profile
After Hours: $7.28
EARNINGS: 04/29/2009
STATUS: Test 18 day EMA. SPIL is on its second test of a blast higher that started in early March. Tested in mid-April then took off late in the month. Last week it tested that strong move, coming back to the 18 day EMA (6.98) on the Friday low, then rebounding sharply to close right at the 10 day EMA. That left a nice tight doji with a long tail on the candlestick chart. That indicates a rebound is coming and we are ready to move into SPIL as it continues higher from here.
Volume: 1.371M Avg Volume: 2.405M
BUY POINT: $7.42 Volume=2.6M Target=$8.96 Stop=$6.91
POSITION: - Stock (illiquid option chain)

CHT (Chunghwa Telecom--$18.48; +0.04; optionable): Chinese telecom
Company Profile
After Hours: $18.48
STATUS: CHT is testing a break higher off of its bear market low. It gapped higher in March and surged, then formed something of a double bottom with handle the past 7 weeks, forming the handle near the 200 day SMA (18.57) the past week. Nice higher low in the current pattern, tightening up to end the week. Just waiting for the next break higher through the 200 day with some more good volume as seen the past two weeks.
Volume: 2.015M Avg Volume: 1.126M
BUY POINT: $18.77 Volume=1.8M Target=$21.95 Stop=$17.86
POSITION: CHT IW - Sept. $17.50c (69 delta) &/or Stock

 

The 401(k): Retirement Money Tar Pit

Looks like I started kicking myself too soon.

A few weeks ago I explained why I'm going to have to spend the next few years as an indentured servant to the feds to pay the taxes and penalty on my 401(k) withdrawal…but if I hadn't done it when I did, I may never have seen that money again.

The Wall Street Journal reports that 401(k) investors are finding that they can't get their money.

"When Ed Dursky was laid off from his job at a manufacturing company in March, he couldn't withdraw $40,000 from his 401(k) retirement account…"

"I hate to be whiny," said Mr. Dursky, "but it is my money."

Turns out that the money you put into the 401(k) can be locked up a lot longer than you'd like. Most plans allow investors to borrow from their own accounts and some even allow outright withdrawal of matched funds — with the requisite 10% penalty and income tax. The only way to get all of it, however, has been to terminate employment…but now even that's not good enough.

Of course if you're the kind who pays attention to things like history and human nature, you'd have noticed the funny smell around the defined benefits plan a long time ago. And you would have seen this coming.

Here at Whiskey Bar we never stop casting a suspicious eye at the government and we turn our noses at their offers for help. We regret that this time around the feds aren't the ones keeping voluntary and involuntary retirees from their cash. 

Still, if this entire mess hasn't filled you with fear and loathing, then I'll have what you're having.

General economic collapse means that fund managers are finding it in their best interests to limit reallocattion and withdrawal by 401(k) investors. It doesn't matter if you're a 69-year-old recent retiree or a laid-off schlimazel who was counting on the money you'd saved to see you through a few months of unemployment.

Folks are starting to catch on to how important it is to own gold. We harp about that every day in these pages. Not a one of you reading this doubts for a moment that the value of little green pieces of paper that so many others take for granted is only good as a politician's promise.

So what escapes me is why anyone smart enough to save in gold and silver would still tuck money away in a defined benefits plan. The circumstances concerning retrieval have always been extreme. We were assured this was for our own good. After all, this was supposed to be retirement money; the rules had to discourage us from getting at it ahead of time!

But the whole set up smacked of the sort of paternalism that really should have raised our hackles.

And now we discover that fund managers can keep our retirement funds...even after we've retired...or been separated from the payroll under less pleasant circumstances. Looks like in some cases, some folks may never see that retirement money. The value of their locked investments may dwindle to nothing or they may die of old age before things are sorted out in the courts.

I remember years ago when I began my working life and didn't know enough to be wary of the state's siren songs about financial security. I thought the 401(k) such a wonderful idea. As suspicion toward leviathan grew I still harbored a child's hope that at least this whole "invest pre-tax and get a company match" thing wasn't a trap. Of course, turns out it was...

The federal government itself hasn't yet taken a turn at freezing 401(k) accounts, but this sudden if inevitable betrayal by fund managers should serve as a warning.

Please don't let this happen to you. No matter how the feds try to lure you with tax-deferrals, no matter how tempting the company match is, don't fall for it.

Granted, money you deposit anywhere besides your mattress can be nationalized or misappropriated, but putting funds into something like a 401(k) is akin to forcing your head into the mouth of the lion.

 

So what can you do?

Well, you don't have to bind your retirement money with government red tape.

Fellow editor Jim Nelson sits just a few feet from the Whiskey Bar and in response to my outraged cussing over this news about 401(k) freezes he's offered to share his own strategy for building retirement wealth.

And this is money that can't be penalized by the feds for early withdrawal, or kept from you by callous fund managers…

Be sure to be reading when Jim Nelson stops by tomorrow to tend the bar.

 

Here's an amusing little missive from someone who objects to James Howard Kunstler's strong language…and who surmises from it that I'm a low down darkie…

"Sir," and I use the term loosely, I was somewhat surprised by your response, I expressed an opinion that his language was CRUDE to say the least. Civilized human beings do not speak in that manner. You said that you "shoot straight and sometimes a little hard." But it seems that when others also shoot straight and sometimes hard, it is unacceptable as far as you are concerned. "You unsubscribed me". I was puzzled until I saw a picture of you, I then understood. You were probably raised in a neighborhood where foul language and criminal behavior was accepted as the norm. I was born and raised in Irvington, New Jersey, in the 1940's and the 1950's. Irvington bordered Newark, New Jersey. Newark had a high percentage of blacks. Irvington was 95 % white.  We could walk the streets at midnight and not have to worry about crime. Now Irvington is the most violent city in New Jersey, with their drugs and high murder rate. 

We should have picked our own cotton!  I also shoot straight and a little hard. By the way if I really wanted to, I can easily check out your website, but I could care less, I already have much too much to read on a daily basis. Happy Hanukah.

James Howard Kunstler used the term "pissed off"…plus he has a naughty word in the title of his website...plus Gary Gibson is black...so add it up and this obviously makes Gary Gibson a low class darkie from a low class darkie neighborhood.

Thanks for clearing that one up.

I'm not going to apologize for the language that appears in Whiskey. If you don't like it, you don't have to read it. I'll even give you your money back.

I do take exception to his assumptions about my upbringing, but I try my best to remember what my father taught me about people who say this sort of thing. What they say has nothing to do with the truth about me, just the truth about them.

Here's a bit of encouragement from a happy Shooter who sees things in a very different light:

Gary, I am almost 58 years of age and in the process of evolving (and at times, revolving) into my 4th career. Although educated in the formal sciences, two of the four career paths I took in those tender years did not yield the kind of financial security I had hoped. This fourth (and God willing, the last) occupation involves finance and trading and I need to tell you that reading your articles and others, endorsed by yourself, has helped me immensely. Understanding the world of economics as impacted by geography and politics is not easy for someone with my background. You guys are truly gifted, ALL of you, and the ability for you to see the BIG PICTURE, and the language conveyed to best explain it to us readers, is an endeavor that I, for one, truly appreciate.
 
Thanks for all your great work, good Sir!

Thank you very, very much. We take our mission very seriously and it does me good to hear that all the shots we send your way are doing some good.

If you'd like to meet me along with some of our most frequent contributors, then join us in Vancouver at the Whiskey Bar.

Yep. Economics, geography, politics…we know they meet up somewhere. Central banks, fiat currency, credit bubbles, bank bailouts, major industry nationalization…those of us who've paid any attention to history saw all these things coming a country mile away.

Now begins the outright theft of the citizenry's funds in the low-hanging fruit that is the 401(k). I expect the contents will eventually be nationalized and at some point private gold ownership will be outlawed.

We all know what's coming. Stick with us as we try to keep one step ahead.

The Bottom of Stocks Market

Euphoria managed to out-run swine flu last week as the epidemic-du-jour, with "consumer" confidence jumping and the big bank stocks nudging up. The H1N1 virus fizzled for now, at least in terms of kill ratio, though we're warned it might boomerang in the fall with a vengeance. No one was surprised to see Chrysler roll over like a possum on a county highway, but the memory of their muscle cars will linger on like a California surfing song. Here in the northeast, where Sundays are not spent at the NASCAR oval, the spring foliage reached the tenderly explosive stage and it was hard to feel bad about anything.

For now, the "bottom" is in — that is, the bottom of this society's ability to process reality. It may continue for a month of so, even after the "stress test" for banks is finally let out of the massage parlor with a "happy ending." But events are underway that are beyond the command of personalities. We're done "doing business" in all the ways that we've been used to, but we just can't get with the new program. Let's count the ways:

1) The revolving credit economy is over. It's over because we can't increase energy inputs to the system, which is one way of saying "peak oil." Of course hardly anybody believes this right now because the price of oil crashed nine months ago, along with global manufacturing and trade. But nothing has changed on the peak oil scene — except perhaps that ever more new oil projects have been cancelled for lack of financing, which will boomerang on us (even if swine flu doesn't) in the form of much lower future oil production. In any case, the credit fiesta is over, and the "consumer" economy with it, because industrial growth as we have known it is over. It's over globally, too, though all regions of the world will not experience its demise the same way at the same rate.

The Asian nations may swap things around a while longer but China is basically screwed. They have less oil left than we have (which is saying, not much at all) and they won't corner the rest of the global oil market without starting World War Three. Meanwhile, they're running out of water and food. Good luck becoming the next global hegemon. Oh, and Japan imports 90 percent of its energy; India over 80 percent. Fuggeddabowdit.

Credit will not vanish everywhere overnight — even in the USA — because it is not distributed equally everywhere. But it will vanish in layers, and here in the USA a very broad layer of the lower and middle classes are now losing their access to it in one way or another — personally, in small business — and they will never get it back. Anyone who intends to thrive in the years just ahead had better plan on doing it on the basis of accounts receivable — and what they receive might not even necessarily come in the form of US dollars. It may come in the form of gold or silver or in the promise of reciprocal services rendered.

This has enormous implications for two of the items in which our credit-dispensing operations are most deeply vested: houses and cars. Unfortunately, these are exactly the things that economic life has been based on for decades in our nation, which leads to the next categories:

2) The suburban living arrangement is over, along with all its accessories and furnishings. Taken as "all of a piece," the suburban expansion was one sixty-year-long orgasm of hypertrophy. We did it because we could. We won a world war and threw a party. We had lots of cheap land and cheap oil. It made lots of people lots of money and all its usufructs have become embedded in our national identity to the dangerous degree that the loss of them will provoke a kind of national psychotic breakdown. In fact, it already has. The completely unrealistic expectation that we can resume this way of life is proof of it.

The immediate problem is that we can't build anymore of it. The next problem will be the failure of the stuff that already exists. The first stage of that is now palpable in the mortgage foreclosure fiasco and, just beginning now, the tanking of malls, strip centers, office parks and other commercial property investments. The latter will accelerate and become visible very quickly as retail tenants bug out and weeds start growing where the Chryslers and Pontiacs once parked. The next stage, which involves large demographic shifts in how we inhabit the landscape, has not quite gotten underway.

3) The Happy Motoring fiesta is over. You'd think that with Chrysler crawling into the bankruptcy court, and GM just weeks away from the same terminal ceremony, the news media would begin to suspect that the foundation of everyday life in this country was cracking. Instead, all we hear is blather about "market share" shifting to Toyota. News flash: not only will we make fewer automobiles in the USA, but Americans will buy far fewer cars made anywhere. We'll keep the current fleet moving a while longer, but when it's too beat to repair, we won't be changing it out for a new fleet — despite all the fantasies about hybrids, plug-and-drive electrics, and so on. The masses will be too broke to buy these things. What's more, they will be very resentful of th e shrinking economic "elite" who can afford them. And, anyway, our roads and highways are destined to fall apart very quickly because there is no way we can sustain the necessary rate of normal maintenance. Meanwhile, we remain completely un-serious about public transit — even about fixing the vestiges that still exist. The airline industry, of course, will be toast inside of five years.

4) Our food production system is approaching crisis. There's no way we can continue the petro-agriculture system of farming and the Cheez Doodle and Pepsi Cola diet that it services. The public is absolutely zombified in the face of this problem — perhaps a result of the diet itself. President Obama and Ag Secretary Vilsack have not given a hint that they understand the gravity of the situation. It is probably one of those unfortunate events of history that can only impress a society in the form of a crisis. It also happens to be one of the few problems we face that public policy could affect sharply and broadly — if we underwrote the reactivation of smaller, local farm operations instead of shoveling money to giant "agribusiness" (or Citibank, or Goldman Sachs, or AIG. .). I maintain that this may be the year that the crisis gets our attention, because capital is suddenly harder to get than fossil-fuel-based fertilizer.

All these epochal discontinuities present themselves, for the moment, as a season of muted "hope" and general apathy. The days are suddenly mild. We've resumed old and happy habits of grilling meat outdoors and motoring to those remaining places that were not blanketed with franchised food huts and discount malls. We have a new, charming president with an appealing family. Newly minted dollars are flowing to the "shovel-ready." The new bad news is less bad than the old bad news (or seems to be). And the year just past has been such a bummer that our hard-wired human nature tells us that good things must be just around the corner.

Personally, I think a lot of good things await us, but not the ones we're expecting — not a return to buying slurpees on credit cards. It will be very salutary to leave behind the junk empire we've accumulated and move into an epoch of quality and purpose. For the moment, though, our hopes reside elsewhere.

Your editor is feeling a bit beaten up today, Shooters. I am so very weary of arguing against the proponents of collectivism and the nanny state. Thank goodness one of you did the heavy lifting and sent in this fantastic missive…

Gary,
 
Beyond my agreement with the gent from UK, and the quote from Atlas Shrugged, I believe there's a need to remind our fellow citizens here in America that we've been busy making our national health care system a socialistic one for many decades.  Of course, Medicare and Medicaid come to mind, both wonderful systems, provided one enjoys funding a giant bureaucracy that uses much of its funds in its own, ineffective administration, imposes rules on one's health care which are sometimes (often?) in conflict with one's health or the best strategy of care, and orders the doctors who have spent years in training how they should perform their duties and practice their craft, and of course dictates to these professionals how much they should be paid for their services.  But these are the same topics covered by the previous two writers.
 
I'm amazed of the failure to recognize how the insurance industry has socialized health care in America.  The real emergence of the insurance industry's socialization of our health care and consequent run up in the costs began in the early 1970s, when Nixon agreed to allow, no, to promote the use of managed care.  There's a recording floating around the net of Nixon listening to the pitch, and agreeing.  Bought and paid.
 
But even without that, logic quickly points out that by using vast health care insurance in a system, the insurance socializes the industry, failing to provide the best health care for the money spent.  Instead, it inflates the costs of health care, dramatically so.  If the citizens of the US were to become convinced that health care would dramatically improve while driving costs down, and do away with government programs (Medicare & Medicaid), as well as health care insurance, the industry would indeed dramatically improve and costs would dramatically be reduced.
 
If there were no government programs to pay for health care, and no insurance programs to pay for health care, then the health care industry would be forced to bring its costs within market limits.  At the same time, competition would force improved care.  In such a system, I further believe it advisable to outlaw liability actions.  This wouldn't be popular with the attorneys, but it would dramatically reduce the costs of health care, as well as many unnecessary procedures.  It seems reasonable to me, after all, most of us make mistakes while performing our jobs, but we aren't brought to court on a liability action.  Of course, in place of no litigation, I'd strongly recommend criminal action should a health care professional cross a defined threshold, such as performing a procedure under the influence, blatant disregard for the health of a patient, and other such thresholds designed to help protect the health of patients.  But in the end, just as auto repair is governed and monitored by the market, so would health care, and more effectively than the government oversight that has been used.  Let us keep in mind that the US does not have the best health care in the world, and that the health of US citizens ranks relatively far down the list when compared to that of other industrialized nations.  Government oversight and pseudo market driven health care has failed us.
 
I don't have an answer as what to do with those who would be unable to pay for health care even in a system like that described above, where the market truly drives quality and price.  Obviously, in such a system, niche markets for serving those with limited ability to pay would certainly spring up, and there will certainly be those who support clinics for those who can't pay.  Beyond that, I'd think that we here in the US would again become responsible, putting aside savings to cover the costs of medical care before we spent those dollars on a new car, new big screen, and other items that actually are luxury items.  Being forced to seek health care from niche providers or free clinics provided by philanderers instead of the higher quality, only because one made the decision to spend their money on luxury items instead of a health savings account, would soon cure many.  As with all socialized systems, it is disheartening to see folks driv ing much more valuable autos, living in much more valuable homes, wearing jewelry I can't afford to purchase for my wife, yet entering the hospital emergency room demanding high quality service for a simple ailment that should have been cared for by a family MD, and having Medicare or Medicaid pay the bill, while I am forced to wait longer for a true emergency, because I can't afford to come to the emergency room for routine treatment, and that goes on and on.  And so I say, do away with it all, the government and insurance industry health care systems, and we'll ALL pay for treatment as needed, making the personal decision what portion of our income we're willing to use for health care.

Testify!

Remember that I love you all, even the collectivist loudmouths who send me hate mail (when I offer to unsubscribe those folks, it's out of love too…so they won't get a coronary reading my anti-collectivist propaganda).

The weekend's weather looks pretty promising. Pick up a copy of James Howard Kunstler's World Made By Hand and read it somewhere quiet and sunny. I'll be brushing up on my Rothbard.

Ready to Test the Stocks Market's Bottom

Market Summary (continued)

Friday was what is called an inside day. That is where the indices trade between the prior session's high and low. Neither the buyers nor the sellers had enough strength to push the market higher or lower. That is about as noncommittal a day as you can get. Heading into a three-day weekend and with the indices trading in what looks to be a new trading range, that is not surprising.

As for the news on Friday, there were some positives and negatives. The positives: same store sales were better than expected. They are still falling, just not as much as anticipated. That is the same story sales have told the past three months, so whether this is really a positive is problematical. In addition to sales, the Fed announced that, for the first time since September 2008 when the crisis started, banks were borrowing less from the Fed's emergency facilities. Good news is it shows the credit situation is improving.

As for the negatives, British Airways said that it does not see any green shoots in any of its markets. In fact, it says that things are worse in Asia, the region many are looking at to pull the world out of recession, than anywhere else in the world. Asia rose faster than any place in the world when it came to GDP growth, so you would expect the relative crash to be stronger in Asia. That makes sense, but it does not bode well for the world economic recovery.
Read "The Daily" Entire Weekend Summary

Here's a trade from "The Daily" and insights into our trading strategy:

Chart by StockCharts.com

FSLR (First Solar, Inc.)
Company Profile
Gaps often leave great set ups for further moves upside or downside. Many say that all gaps have to be filled; often they are, but not always right away. A smart trader can make great money watching how stocks react to their gaps.

FSLR gapped higher to end April on unexpectedly good earnings. Many would give up on the stock as a potential way to make money, having thought the move was over. It was, for the time being. We kept watching because on the move FSLR gapped through a key level, the November peak. When a stock gaps through a key level you often get a chance for a big play . . . up or down.

FSLR made the gap and did not look back, continuing to run up through $200 to $207. That is a key level from 2008 when it bottomed there a couple of times. That often leads to a test after a run higher. We kept watching and FSLR did come back to test, holding right at the gap up point. Indeed the 18 day EMA, often used as support on breakout tests, had risen to that level; two layers of support.

We put it on the report as it tested. When we see this kind of test we look for the stock to hold the support. That is the first indication we have an upside play setting up. Then we look for a higher close off of that test. When we see that we move in right in during the last hour when we see the stock is going to make that higher close. Or we can get in early the next session.

We did not catch FSLR at the close so we moved in the next session. Given the price of the stock we were looking at options on this play. FSLR was trading between $185 and $190 and its options are somewhat pricey so we were looking to buy some near money options. We picked up the July $185 strike call options and sold some $185 put options. We bought the call options at $21.20. FSLR closed the session at $189.70, up $4.80. The next session FSLR gapped higher and surged $12.70 to $205, almost matching the surge off the gap. While we are looking for more gain on the play, after three strong sessions in a market that was selling near term we decided to bank some gain. We could sell a few of our positions for $31, and in a day we never did turn down a 42% gain. So we sold part of the position, but kept a good chunk for a continued move higher. FSLR tested Thursday and Friday, fading toward near support at the 10 day EMA on low volume. We are looking for FSLR to hold there and explode on through the 200 day SMA. Indeed we are looking at picking up some more positions as FSLR surges again.

We had other good plays on the week, including SCHN as we continue playing commodities during the inflation rally. We bought into SCHN on Monday as it came off a test of the February peak. We picked up some stock at $49.54 and some August $45 call options at $9.60 as it bounced off that test. SCHN surged up through Wednesday, matching the breakout high, hitting $55.92 on the session high. When we saw it hit that level and stall we saw a nice 4 day surge running out of gas. We sold part of our position for $55.45, banking 11.9%. We sold part of our options for $13.70, banking 42%. Not bad for less than a week, and as SCHN tests and holds near support at the 10 day EMA we will look for another opportunity upside if it can hold and make the next surge higher.

STOCK SPLIT PLAY

 

Playing stock splits can be very profitable, but it takes know-how. Our stock split service focuses on three main types of plays:

1) pre-announcement (where we forecast an upcoming split prior to the company making the announcement); 2) pre-split (these plays are made in the days leading up to the actual split day); and 3) post-split plays (plays made after the actual stock split where the stock is showing continued or renewed strength).

For post-splits, we can play them as we would pre-splits (very short term), but we prefer to stretch our horizons, playing the trend. When playing options, we look further out, 2 or more months at least. We let the trend carry us along if there is one, but we will also take profits if the technical pattern degenerates, e.g., breaks a trendline. The main difference between post-splits and pre-splits plays is that we really have to like the pattern. Pre-splits can run right before their splits even with poor technical indicators. For post-splits, we are looking at the stocks from more of a longer term "would I buy this stock at this juncture?" position. Now there are times when a hot stock splits and investors pile in to get in while the stock is 'cheaper.' We play those, but with more of a short-term, pre-splits mentality in that we will be ready to get out fast if the momentum fades.

Remember, everything we do has to pass muster with the market that day ... don't fight the market on these plays.

Chart by StockCharts.com

CTRP (Ctrip.com International--$37.04; +0.69; optionable): Chinese travel
Company Profile
After Hours: $37.01
EARNINGS: 05/11/2009
STATUS: Flag. China today announced it anticipated 8% growth this year. A survey was conducted asking citizens what they would do with the money if the economy started expanding again; buy clothes and travel was the response. So, CTRP is a logical candidate to take advantage of that. It gapped higher two weeks back on a strong earnings report, taking it out of a play we had on at that time. It has since proved it can hold the gap, trading in a tight lateral range. Thursday it tested back to the 10 day EMA (36.23) and held. Friday CTRP bounced up off that level. If it continues higher this week we will look for a higher close Tuesday on some decent volume to cue us for the buy.
Volume: 898.301K Avg Volume: 1.439M
BUY POINT: $37.88 Volume=2M Target=$44.88 Stop=$35.77
POSITION: QCT IG - Sept. $35c (65 delta) &/or Stock

XME (S&P Metals & Mining ETF--$34.70; -0.25; optionable)
Company Profile
After Hours: $34.90
STATUS: Pennant. This metals ETF is forming a 4 week pennant after the early May breakout from a long 6 month base that basically covers the entire bottom since the market stopped selling off. Metals are part of the China growth story as well as the inflation story we have been harping on. XME is making a higher low at the 200 day SMA (34.61), and those higher lows often precede the break higher. Nice strong volume on the upside sessions show accumulation. Ready to move in on a bounce off of this higher low.
Volume: 2.625M Avg Volume: 2.414M
BUY POINT: $35.39 Volume=3.5M Target=$42.88 Stop=$33.11
POSITION: EXF II - Sept. $35c (53 delta) &/or Stock

Six World-Changing Penny Stocks

Penny stocks are always good for drastic price movements. That's why they have the unique ability to double or triple in value within hours.

But once every few lifetimes, one of these penny stocks is able to change the world.

We found six of these potentially world-changing penny stocks.

So far, only 63 people even know why these six companies will change the world. You're number 64.

Don't take this information lightly.

In my 25 years of research and study, I've learned of 63 people who know what I'm about to show you.

These 63 are Nobel Prize winners, venture capitalists, famous researchers, and CEOs.

They each control a different piece of the amazing story I'll share with you today…

Today, I'll show you everything. So you may be number 64 in the world to know this staggering secret…

What's more, even the 63 select, in-the-know folks are staggered by this idea's world-changing potential…

Why? Because a chance like this comes along once every few lifetimes.

If you're lucky.

And you are lucky. Very lucky, in fact.

Because you're about to see what only a handful of people know.

What you learn could make you ultra-wealthy — and it could also change the world.

See, I've interviewed some of these 63 folks who get it.

And I'm convinced that years from now, mankind could remember them as responsible for the most important development in human history.

By then, their ideas could have made you ultra-wealthy.

That's one reason why I'm so excited to write to you today…

Because you're minutes away from what could be your best shot ever at a different life… the ultra-wealthy life.

Your One Chance at Ultra-Wealth From a World-Changing Idea Whose Time Has Come…

I believe there's no force stronger than an idea that won't wait for people to notice before it changes the world.

That's the simple reason why I'm writing to you today.

You see, I've found what I believe is the most shocking and profitable idea of our era.

And I'll show you my complete research. All my interviews.

First — let's be clear on something right from the start — here's what I mean when I say you could be on the verge of "ultra-wealth"…

"Ultra-wealth" is you having endless piles of cash....

Money you can use however you choose.

Money that thrives no matter what happens in the stocks markets. Money that works for you — easy, effortless money.

Money that finances your dreams, your children's dreams, and your grandchildren's lives and dreams… that's Ultra-Wealth.

Today, I'll introduce you to the people who can make it happen — for you.

Let's get started…

You're Seconds Away From Your Shot at Life-Changing Ultra-Wealth

Changing lives. Raking in huge fortunes.

It's a lot to handle. I know. So first, let me put all this in context.

Because you may be only #64 in the world to know… it's important you get this right. Why?

Time is critical here… parts of what I'll show you are extremely time-sensitive.

So critical, in fact, that your reply by Midnight on Friday, May 15 is essential.

I'll give you the details on why that date is so important in just a second. 

Just a hint: That's the date that one of the 63 promises to break some incredible news on the international scene… it's news that could easily put your ultra-wealth in motion.

But first, here's some real-world implications of what I'm about to tell you…

What you're about to read is the product of my years of research into the shocking technologies that will soon change our lives. In fact, some of what you'll read today is already changing lives… and fortunes.

My readers understand this. So when I say only "63 people in the world know why…" the six tiny companies I'll reveal will change the world, of course I'm leaving some people out. The 63 people I'm referring to are executives at each of these six companies — the ones who are in the absolute best position to know exactly how much potential their companies have.

But consider this — I've had CEOs and CFOs go on the record with me — and they've so much as admitted that they deeply understand the work their own company is doing, but they're completely in the dark as to what other companies in their field may be up to.

My job gives me unique access to talk to ALL these CEOs and CFOs — all the research people — so I can wrap up all their work in reports like this one…

So while it may be more than "63" folks currently "in-the-know" — it's no overstatement to say that only a critical few understand the full implications, and profit potential, of what you'll read today. It may actually be 100 people, or 250 people, or maybe more. Today, you can join them — and begin to build ultra-wealth from these incredible ideas.

Imagine How Different Your Life Would Be If…

Imagine how different your life would be if you could step back in time…

And take a seat alongside Thomas Edison in 1879 at his Menlo Park lab.

How your life, and fortunes would be drastically different…

Here's my point: You wouldn't have had to invent the light bulb.

It would've been enough to simply soak in the ideas. And then to take decisive action and invest as the world-changing ideas you'd learned about changed humanity…

That's exactly the power you have today — the power to make a FORTUNE.

Whether you jump on right now or not — this world-changing idea will sweep the world. 

So why not jump on at the earliest stages and maximize your life-changing profits? It's an easy choice when you consider the potential. Potential like…

Sitting in on meetings with IBM computer brass in late 1961 — months before the company went public.

How much was their "inside" scoop worth? … Billions.

Or NASA scientists in the mid-60s. What if you knew who would supply the parts to send men to the moon, well ahead of time… how rich would that have made you?

I confess — what you're about to see today is just as shocking, and potentially more lucrative, than going to the moon.

The 63 brilliant minds you're about to meet — they're on to something BIGGER than electricity.

More lucrative than early computers. And more shocking than going to the moon.

You see, this idea has the power to directly benefit every single man, woman and child in the world. 

Not just the lucky, the rich, or the citizens of certain countries. 

What you're going to know in six seconds will put you in exclusive company in the history of mankind....

Yes, work that will change the world is underway — right now.

Opportunities like the one I'm about to uncover come along once every few lifetimes…

Prepare yourself for the ultimate profit revelation…

Here's What the 63 With the Real Story Already Know — and Why It Could Make You Ultra-Wealthy

The revolutionary change you're about to see is already well under way.

It has the power to change every life on the planet — and make a select-few folks like you incredibly rich. Now here it is…

Scientists are close to figuring out how to make the body heal itself.

I'm talking about making the body heal itself quickly, painlessly, and naturally — harnessing the potential stored deep inside each of us…

It's the power to cure disease. The power to PREVENT disease. And the power to eliminate aging…

In fact, much of what I'll show you today is already in testing. Plus, six companies I'll share with you today control some of the most important breakthroughs…

Some of this work is about to hit the stocks market for 2010. Today I'll tell you all about it…

Someday very soon, if a person has a heart attack, that person could be able to receive a simple, painless shot that rebuilds his heart.

So it's good like new. Clean, YOUNG, healthy, and strong. As good as a new heart.

Now here's the shocking part…

Scientists could be able to build the shot that repairs and rebuilds hearts by taking a small blood sample.

Or lifting a few pieces of hair from a person's head. But that's still not the best part…

One day, the process could be as easy as going out to get a cup of coffee.

A machine will take a patient's small blood or hair sample.

A few seconds later, the machine could spit out a formula into a syringe — and inside the syringe could be the cellular tools to repair and rebuild any number of organs…

The liver. Kidneys. Lungs. Heart. Brain… you name it.

The science can rebuild skin. Cartilage. Tendons.

I'm talking about practical immortality. I'm talking about the potential for radically increased lifespan — making 75 the new 40.

Imagine the market… imagine the profits.

Imagine how this technology will change medicine. Forever.

It's a new frontier of cures — completely personalized to each patient. 

Keep in mind too — what I'll show you today isn't just to help repair and rebuild organs damaged by disease — it's to make the old person's body truly young again.

It isn't crazy. It isn't far-fetched. It's the stocks market story of the century…

…and it's already underway.

The implications of this science are as far-reaching as anything mankind has ever discovered.

That's because every living human could potentially take advantage of it. 

There is no one alive that this technology can't help.

That's why it's bigger than the light bulb.

It's going to be more lucrative than computers.

And it's more shocking than America placing a man on the moon… and six tiny companies are behind it all… companies I want to share with you TODAY.

True, you're going to have to move fast, because what's happening right now in "life-extension sciences" is bigger and more important that any political boundary…

…More revolutionary than any short-term market story. More life and world-changing than any story in history…

Not only can this technology cure disease — it has the potential to WIPE OUT many of the problems associated with aging… like high cholesterol, memory loss… the list is endless, inescapable… revolutionary…

The profit windup is just getting started… and it could receive a huge boost on Friday, May 15. I'll tell you all about it…

First, here's why it's so important that you're on the inside of this ticket to ultra-wealth…

Revealed: The Most Important — And Profitable  — Scientific Breakthrough In History

So how does it feel to be on the inside?

More importantly, are you ready to get rich?

The implications of what I'm describing are as huge as anything mankind has ever seen… and six tiny companies control all the most important technology…

Today, I will tell you all about these six companies. I will show you everything I know — all my research — all my interviews.

In fact, if you respond before Midnight on Friday, May 15 — I'll send you my newest report 6 World-Changing Companies To Deliver Your Ultra-Wealth where you'll learn all the details on this breakthrough — such as…

Which amazing company is led by a man who was awarded a Nobel Prize just a few years ago

Which company just received a huge, $4.7 million grant to further refine their research and testing

Plus all the details on yet another company that just signed a lucrative agreement with a big pharma firm that could be worth billions.

I'll give you all the details on why you must reply by Midnight on Friday, May 15 and how you can get your own copy of 6 World-Changing Companies To Deliver Your Ultra-Wealth in just a moment…

See… all this news is coming together so fast — I have so much more I have to show you right now…

Now here's the scientific background —

You know that our bodies are incredibly complex.

It's not an overstatement to say how our bodies work is as complex as the forces that keep the stars in the sky…

And all throughout human history, we've fought to understand more about ourselves.  About what makes our bodies work.

For millennia, progress was slow… we made breakthroughs in fits and starts.

Vaccine technology — like for Polio in 1952, was just the tip of the iceberg.

Decades later, imaging technology began to allow doctors and scientists to peer deeper and deeper into our bodies.

And what was once done by hand — such as heart surgery — only first pioneered in November 1944 — began to receive the help of technology…

Today — with ultra-advanced microscopes and what's called "molecularly precise" manufacturing, scientists are close to figuring out how to use our own cells to cure us of disease.

So rather than relying on some outside treatment — the future of medicine will be in figuring out how to make your body heal itself…

And rejuvenate itself. Without surgery or any invasive procedure… Now here's my confession…

Costs at market for what I'll show you will be incredible at first. Only rich people will be able to afford them. (I'll introduce you to some of these folks in just a minute…)

Eventually, if the technology becomes widespread, the costs will come down.

Everyone could get the cures they need.

The world will change.

People might not die from the most deadly diseases we know today…

THINK ABOUT THE INVESTMENT POTENTIAL…

That's how you could become rich. Because you're in on it early. Before the crowd.

You have a chance to make the bulk of your profits while margins are incredibly high…

And progress will only continue to build… FASTER and FASTER.

It's called Moore's Law. Progress accelerates. Miracles develop seemingly overnight. 

Just like you saw in that tiny, over-simplified timeline of medical advances I just showed you…

That's what's happening right now. Progress is building…faster and faster.

In fact, I'm convinced this is the most exciting time EVER to be alive.

And to get very, very rich. How?

By taking a small stake in the six companies I reveal to you in 6 World-Changing Companies To Deliver Your Ultra-Wealth.

That's the full potential you have TODAY by being on the inside…

But, again — if you're interested in ultra-wealth — I must hear from you by Midnight, Friday, May 15.

There's a shocking announcement set for the night before — and it's the moment when your ultra-wealth might begin…

Before I give you those details, however, let's step back for a second and look at just one part of the body — and the enormous potential these cures have to change our world… very soon…

How One Part of the Body Dominates Medicine — And Your Chance At Ultra-Wealth

At this very moment — 30% of all worldwide deaths are because of heart attacks or some other heart problem.

The technology I'm describing could give 70-year olds strong, healthy, robust, young hearts.

Imagine being 70. And having the heart of a 29-year-old.

Yes, I'm talking about rebuilding hearts — after heart attacks.

PLUS — the power to make sure younger folk never have heart attacks in the first place.

All from a simple, painless shot.

That's the deep promise behind the science I'm revealing today…

Imagine the full potential… Children born with heart defects? Not anymore.

Young folks cut down in the prime of their life due to a heart valve malfunction. Not anymore.

Older folks living in fear of heart attacks, cholesterol, stroke… not anymore.

It's closer than you think… in fact, the hidden story is that it's coming together so fast it could change the face of investing forever…

FACT: The Birth of Computer Technology Can't Hold a Candle to This Amazing Promise…

You remember the early days of the computer. 

In the 60's and 70's, you'd see huge computers the size of an entire room, requiring entire teams of highly trained people to constantly feed them data. 

And now, the tiny computer you're using to read this letter is far more powerful than that massive hunk of metal and wires…

The technology I'm describing today will build FASTER than computers did. In fact, it's happening even today… for example…

Another company I want to tell you all about in 6 World-Changing Companies To Deliver Your Ultra-Wealth has a revolutionary psoriasis drug that just hit the best stocks market in Canada.

This company has 40 other drugs currently in testing.

Another company holds all the most important patents on pill delivery for what could develop into the best way to cure the body of its most terrible diseases…

Cancer. Alzheimer's. Parkinson's. Diabetes. MS — you name it.

The potential is unlimited.

Now, I admit, I'm only giving you the quick-hit "bullet point" version of the story here.

To get ticker symbols, full details on each company's groundbreaking work — and how you could start seeing your ultra-wealth profits as early as Friday, May 15 — I want you to agree to receive 6 World-Changing Companies To Deliver Your Ultra-Wealth.

Because — when you break down the implications one-by-one — the potential is so shocking…

Imagine CURING Alzheimer's with a pill. Or DESTROYING diabetes with a pill.

Or take the example from above — just imagine the profits from a radical new way to treat psoriasis. How much does that cost each year? In creams, treatments — diagnosis costs — you name it.

Imagine it all going away. And everyone who suffers from it being totally healthy.

TENS OF BILLIONS… in profits for people just like you.

The profits for those on board from the start could be astounding. The profits could change lives…

My point is this — these 63 folks with the inside scoop…

There's amazing work going on. Life-saving potential like humankind has never seen before…

YES — we're close to eliminating almost every disease — without drugs as we know them today, without side-effects…

PLUS — reversing aging, restoring youth… lengthening life spans…

And you're in on the ground floor. Because you're reading this note from me today…

I've talked to the CEOs and the head researchers. I've cross-checked their statements with my network of industry insiders…

I've traveled thousands of miles over the past several years to get all the major players to sit down with me…

I've talked to more scientists "in-the-know" than most researchers ever meet in their life…

And I have to admit — what I'm going to show you today… it reaches to the very top.

Roche, Novartis, Merck, Pfizer, AstraZeneca, GlaxoSmithKline — they're all involved.

So is the White House and some of the most famous investors in the world…

And I've done the digging — inside some of the minds of the 63 with the full story — and I'm breaking it all open for you today. Plus I want you to have the full story on how your profits could begin — which I'll gladly GIVE YOU — so long as you respond to this note before Midnight on Friday, May 15… and claim your exclusive copy of 6 World-Changing Companies To Deliver Your Ultra-Wealth.

I'll tell you the profitable recipe behind that date in just a moment… but right now, there's so much more I have to show you.

Like how this amazing profit wind-up is ALREADY UNDERWAY…

At This Very Moment, the World Is Changing — So Don't Let Time Run Out on Your Huge Gains…

We could very well be 24 months (or less) away from offshore availability of some of these cures…

This could happen whether or not the FDA gets on board and pushes these cures through testing and approval.

The force that's gathering right now…

It's bigger than any government. It's stronger than any objection. It's more powerful and lucrative than any fear…

In fact, on the morning of Monday, April 27, 2009 — President Barack Obama pledged to spend fully 3% of U.S. GDP on science and innovation… he said:

The question is, will you be a part of it? Will you be in position to grab the ultra-wealth this science promises?

I've already shown that it can't be stopped. This progress is so needed, so universal, that it's only a matter of time before it sweeps over the entire world. 

So that's why it's so urgent that you get in while it's still unknown and behind the curtain. 

Acting today is the difference between buying Microsoft in 1986 and turning $5,000 into over $1 million, or buying today — when it's already a mature company. That's how important this letter is to your financial future…

Act today, and you won't miss your chance for profits. You won't miss your shot at ultra-wealth.

Because you're now on the inside — and you're reading the most important letter you've ever read. This one.

For a chance to make the biggest profits, however, you must reply by Midnight on Friday, May 15. What's happening the night before — the announcement I'm expecting at an exclusive international event — is so big it could blow the entire story wide open…

After that, millions could know about this. It might be too late for you to get in for the largest gains. That's why you must run with it while you can…

I'll give you all the details on that date in just a second. But first…

This Story Is Bigger Than Government — But Here's How the Gov't Benefits Your Profits

Now here's your key to profits… Patents.

Patents make it possible to pursue an idea — and if it pans out, the inventor gets paid.

Patents are protection. They're security.

The six companies I want to tell you all about today — they're patent RICH.

Development. Manufacturing platforms. Cure delivery. These companies control it all.

Yes, these could be some of the strongest patent-controlling companies, ever. Which only makes the technology they control that much more important.

Someday soon, Pfizer or Roche or Merck will come calling to these tiny, unknown companies in 6 World-Changing Companies To Deliver Your Ultra-Wealth and want to use their technology…

What are these tiny companies going to say?

PAY UP. Which could only make you EVEN RICHER!

Patents, patents, patents. Hundreds of patents between all the involved companies.

It's amazing. And in 6 World-Changing Companies To Deliver Your Ultra-Wealth, you'll see just how big this story really is…

Then you'll grasp just how lucrative your chance is today… and why being on the inside is your key to unstoppable ultra-wealth…

Now here's exactly how you can play these patent-rich little companies to rack up huge gains… right alongside the brilliant 63 folks on the inside…

The Ultra-Wealth Preparation Pack — The Most Lucrative Reading You'll Ever Do…But You Must Respond by Midnight, Friday, May 15

I've wrapped all my research — all my interviews — every bit of information I've gathered in what I call The Ultra-Wealth Preparation Pack… it comes in two volumes…

VOLUME I is the report I already mentioned — 6 World-Changing Companies To Deliver Your Ultra-Wealth where I go over patent details — full business reports — painstaking facts and figures on the businesses of the six companies that stand ready to change the world.

You get 6 World-Changing Companies To Deliver Your Ultra-Wealth IMMEDIATELY — just as soon as you reply to this note from me.

No waiting around. No delays — you get it all — all the power for ultra-wealth — the moment you reply to me today.

PLUS… I have something else you simply must read before Midnight, Friday, May 15…

Interviews With A Few of the Brilliant 63 — Where you can read a direct transcript of my most recent interviews with a few of the folks behind the revolutionary technologies I'm describing today.

The quick-hit breakdown of just SOME of the potential you get with these tickers in your hand is staggering…

Nobel prize winning minds behind these companies
Huge recent grants for key research
Potential cures in testing as I write today
Promise that could some day eliminate nearly any disease — plus essentially REVERSE aging
The potential to repair and rebuild hearts, lungs, tendons, and cartilage

There's more… there's a ton more. I'm just getting started…

See — The Ultra-Wealth Preparation Pack is more than just these two reports…

I'll reveal it all in a minute…

Right now, I have press on, and get deeper inside this story. Get to the heart of the matter… and remember —

If you're interested in what I'm revealing, you must reply by Friday, May 15 at Midnight.

There's a major event scheduled for the night before… and you can only have a shot at the biggest profits if you're on the "inside" before then…

Here's the scoop — for your eyes only — since you're on the inside…

How You Could Start Raking in Life-Changing Gains as Early as Friday, May 15…

The CEO of the company with the power to potentially rebuild hearts is giving a presentation on the evening of Thursday, May 14.

This CEO's company appears in 6 World-Changing Companies To Deliver Your Ultra-Wealth…

Plus — if you respond before Midnight, Friday, May 15 — you can also read an interview I conducted with him… in Interviews With A Few of the Brilliant 63.

Now, I don't know EXACTLY what his announcement will cover. That would be "inside info." I have a few guesses though…

It could be an announcement of a partnership. Or a new breakthrough.

Or maybe details on the multi-million dollar research grant his company just received…

Now, there's a good reason his announcement is so secretive.

You see, his company, (as well as the other five in 6 World-Changing Companies To Deliver Your Ultra-Wealth) is so small — these cures so new — that the entire world must be told at once. 

Otherwise, there's no doubt the press would fumble the story — folks would invest foolishly, and the companies would see improper share price inflation…

By preparing you properly with the news, implications, and potential behind this amazing technology in The Ultra-Wealth Preparation Pack — I'm taking every step possible to help you make the REAL profits — the kind of profits that deliver ultra-wealth…

Whatever news this CEO releases — I'm convinced his announcement, in front of every major player in the industry, could be enough to propel his company to new heights.

Why am I so convinced?

Well, over 60 all-stars are presenting at this conference. From major pharma players — to award-winning research facilities…

And this brilliant researcher closes out the entire conference.

Keep in mind — he's the final speaker because he's a star among stars — some call him the "father" of this industry. I'll show you how strong his work is in just a moment.

The offer to speak last — to have the "last word" in front of the entire industry — it's a sign of respect from his peers. And I think he'll use this amazing platform to break some news.

News that could light up Wall Street as early as Friday, May 15. News that could be in every major financial newspaper — on all the shows.

It's only a matter of time until the media finally does catch on to these unprecedented disease-slaying and life-extending potential cures…

Point is — it's news that could put you on your path to incredible, life-changing gains.

Fast. For the potential to see the biggest profits, I need to hear from you by Midnight, Friday, May 15… 

So you can take the weekend to read the reports — and be in position to act first thing Monday morning. So you can certainly be ready to grab the biggest early profits…

First here's just a taste of what I know about this brilliant researcher…

A History of Groundbreaking Work…The Promise of Life-Changing Ultra-Wealth

Patents turn promise into profits. You know this.

Here's some of the details on this one researcher in particular, and how strong his patent library is.

If he discusses it during his remarks at the conference on the evening of May 14, the crowd could be shocked into silence…

I estimate the value of his patents today, right now, to be worth somewhere between $200 million and $1 billion.

They could be worth many, many times $1 billion — that's just a conservative estimate.

How much did he pay to grab these patents?

$1.2 million. He personally controls a patent library so large — the sky's the limit.

The heart shots I told you about? The exclusive process by which normal cells taken from your hair or skin become cells powerful enough to potentially cure disease?

Patents are in the works for each and every one of these breakthroughs.

Patents turn promise into profits. And his remarks on the evening of May 14 could start a wave of interest that begins your incredible ultra-wealth…

That's your bottom line, right there. Just $257 today could start a stream of ultra-wealth for you and your family — wealth that lasts for decades, for generations…

To get your hands on 6 World-Changing Companies To Deliver Your Ultra-Wealth PLUS my exclusive Interviews With A Few of the Brilliant 63 and be in position to see the biggest gains before the news breaks on Friday, May 15 — I must hear from you today…

First, however… I know I have to tell you all about myself…

I've Built My Career On Being "In Front of the Story" — For Over 25 Years

My name is Patrick Cox. I'm Editor of a cutting-edge technology research service called Breakthrough Technology Alert.

Maybe you've seen me on ABC's Nightline or CNN's Crossfire. Or maybe you've read my articles in The Wall Street Journal, or The Los Angeles Times.

I'm one of the most sought-after technology writers in America.

For example, I've written over 200 editorials for USA Today.

Now, I'm not trying to brag. In fact, besides writing about "in front of the story" ideas for over 25 years, I've also been in on the ground floor of quite a few.

My results? Well... you be the judge.

As publisher and editor of PC-SIG Magazine I wrote about topics like open-source and user-supported software, in 1987.

Most people outside the industry didn't even know what "software" was at the time.

Today, Microsoft alone makes $78 billion per year selling software. The industry overall sells hundreds of billions each year.

Later, I wrote presentations and speeches for the CEO of Netscape in the mid-1990s.

This was when Netscape was revolutionizing what it meant to "search the web".

And in 2000 and 2001, I wrote for an early example of what we now call "blogs."

This was for a site called Tom's Hardware Guide — the second-most visited PC hardware review site.

In just the last eight years, blogging has become it's own billion dollar industry.

By the time I moved on, my section of Tom's Hardware Guide had over one million visitors every day.

I helped increase annual revenues for the site by 500% — more than doubling traffic during my time there.

I've also consulted for countless other companies through the years — on topics ranging from Technology Development to Public Relations and Governmental Affairs.

I've seen a lot of money change hands. I've met many interesting people.

And I've made a nice living by being inside these trends of extreme wealth creation.

What I'm telling you today could be more lucrative than anything I've ever written about.

And you can get the full story just minutes from now when you accept your complete Ultra-Wealth Preparation Pack and put yourself in position for what could be three lifetimes of gains.

These are companies with the knowledge to potentially cure disease and rebuild organs — companies that could easily help make 70 the new 40.

Companies that could make you wealthier — could make your children and grandchildren wealthier — than you ever dreamed possible…

But remember — things could really take off starting on Friday, May 15 — after the brilliant research behind one of our key companies closes the exclusive conference with his release of news…

So you must act quickly. There's no time to waste…

Simply agree to receive your Ultra-Wealth Preparation Pack from me at the end of this letter, and you'll be ahead of 99.9% of the rest of the world as the next great wealth creation gets underway, starting as early as just a few days from today.

NOW IS THE TIME to take full advantage of your unique position in the know…

Now, I promised I'd get right back to explaining the hard science behind these cures…

"I told people PCs would change the world when top consultants were saying the future was room-filling mainframes — and that people would never own personal computers.

Years later, I was a consultant in Silicon Valley at the dawn of the Internet age and told people that the Web would change the way we shopped plus utterly destroy old media.

Then, I predicted that search engines were the future and that all entertainment and literature would eventually come through your computers. I even quit my research work to help Netscape make it happen.

If you'd listened to me then and invested accordingly, you could be a multimillionaire now. So… it's your choice.

I invite you to look with me into the near future where modern medical miracles are going to blow away entire industries and make dreams you've never admitted come true."
Patrick Cox,
Editor — Breakthrough Technology Alert

Your One Simple Step Toward Ultra-Wealth

Your opportunity to turn these tiny companies into incredible wealth is running out of time.

I fully expect that by the afternoon of Friday, May 15 — mainstream awareness of this work could have reached a new level. And then, as they say, the investment cat will have jumped right out of the bag…

The comments by the respected researcher I've described — taking place at the close of the all-star conference the night of May 14 — could set you on a path to true ultra-wealth.

The immediate potential gains would just be the start…

You could see triple-digit gains in the short-term… maybe even quadruple-digit gains…

But those triple and quadruple-digit gains are nothing compared to the life-changing gains you could make if you act today.

There's no time to spare. One simple call to a broker, or a few clicks of the mouse from the comfort of your home computer… and you could be set.

Set for ultra-wealth. Set to take advantage of what years from now, history will remember as the story of our era.

This is your one shot — your one opportunity — to take part in a new world. A better world. A world filled with tremendous profits. And youthful, long, healthy lives. Wealth and health for you and your family.

Simply agree to receive your Ultra-Wealth Preparation Pack — and do it before Friday, May 15 at Midnight… and you're on your way.

But before we get to the shocking offer I want to share with you today — there's one more thing I must cover…

Massive Potential — TODAY — In What Will Become the Market Story of Our Era…

One company I'll tell you about in 6 World-Changing Companies To Deliver Your Ultra-Wealth is actually starting really small…

Right now, this company has a spray in a bottle that could reduce wrinkles.

Plus a potential way to help slow one of the leading causes of blindness.

This company has created a "toolbox" of cure technology with nearly limitless potential… It's shocking just how many diseases and ailments stand to fall by the wayside due to this technology…

Their "toolbox" of technology could be worth tens of billions, actually.

When you consider the current stocks market cap of this company is less than $100 million — we're talking about the potential for AT LEAST 25x gains as the company rockets into history…

And that's wildly conservative…

See, the CFO of this company is another one of the 63 people I've been telling you about…

Now, you haven't heard about this company. As of now, it's completely unknown. It's not in the news.

But you can read all about his company in 6 World-Changing Companies To Deliver Your Ultra-Wealth …

PLUS…

Read my direct interview with him in Interviews With A Few of the Brilliant 63…

So you can judge his work and reputation for YOURSELF. And make your own decision…

In the meantime — consider this — how big will the stocks market be for this wrinkle-destroying breakthrough?

The sky's the limit… in fact, I know a few folks (including the wife of a famous political figure)… who already use this spray.

So rather than paying thousands of dollars for painful, error-prone and scarring cosmetic surgery… a person could spend far less and get the same effect from a spray bottle…

So why's the company doing spray on face-lifts, when it's working on the technology to cure disease?

It's simple. They're demonstrating the principles behind their work. Demonstrating the stocks market. And showcasing the power of their technology.

That's the key here…

These companies are just demonstrating their potential…

That could all change with the shocking announcement I'm expecting on the evening of May 14… because on Friday — the story could start picking up serious steam.

Yes, you're in a once-in-a-lifetime position right now, because so few understand it all.

But this secrecy won't last long. It could all break wide open starting on Friday, May 15…

What I'm describing here will change the world. And so it must change the stocks markets.

The avalanche of money could change lives… especially yours, since you're one of the very few people to understand the weight of this breakthrough…

See, now you're on the inside — same as if you could step back in time and get the inside scoop on revolutionary computer technology — before it became public knowledge…

Here's just a little bit more for you… to witness how overwhelming this potential really is…

You Get LIMITLESS Profit Potential — Here's Why…

SAVING LIVES, EXTENDING LIVES… EXTENDING YOUTH — crafting a better life for each person on the planet — that's what's really potentially at work here…

Imagine if everyone was healthy… if every worker was healthier and happier…

If life after 70 was just the beginning…

Starting to see how it all comes together?

What I'm describing here today will change the world.

Just like the light bulb did. Like computers did. Like how the railroad and how automobiles changed the landscape of life, forever…

Keep in mind — only a few who are in front of the game are going to get very rich.

Folks like you could get incredibly rich if I hear from you before Midnight, Friday, May 15…

Being in the know means you'll be ready to make the truly life-changing money.

The money that builds ultra-wealth. And it all starts today…

Your Complete Ultra-Wealth Preparation Pack — In Your Hands In 60 Seconds, 100% RISK-FREE

At the end of this letter, simply click on the link, and you'll be just seconds away from reading your complete copy of the Ultra-Wealth Preparation Pack.

With the tickers of the six companies I've been telling you about in your hands, you'll be ready to grab your shares and start raking in the profits, as early as Friday, May 15.

Then, you could be well on your way to building a never-ending stream of ultra-wealth.

PLUS — you'll also start receiving monthly issues and weekly trading alerts from me — straight from my desk at Breakthrough Technology Alert headquarters.

Inside these issues and alerts, I tell you all the latest news about our model portfolio and give you the latest scoop on the top stocks for 2010 we're tracking.

But that's not all you get. Here's the full breakdown of what you receive...

FREE — The Complete Ultra-Wealth Preparation Pack— sent right to your inbox, mere minutes after you join Breakthrough Technology Alert. Here's the complete rundown of all your FREE reports

6 World-Changing Companies To Deliver Your Ultra-Wealth — Patent details, the full story on cures and technology currently in testing. You get all the most important info you need to begin raking in ultra-wealth

Interviews With A Few of the Brilliant 63 — You get a glimpse inside the minds of the revolutionary researchers who are changing our world. This report is a direct transcript of my most recent interviews.

Monthly Issues of Breakthrough Technology Alert — Each month, you'll receive a profit-packed issue from me, guaranteed to have at least one new pick

FREE — Weekly AND "FLASH" Email Alerts Directly From Me — If news breaks about one of our recommendations, I tell you everything I know. In short, I'll always keep you "in front of the story" with every pick I make. You get one email update each week, guaranteed. PLUS exclusive round-the-clock "FLASH" Alerts when you need to know something RIGHT AWAY.

FIRST-READ Status For All Future Reports — Any special report I ever issue at any time in the future, you get a first look, before anyone else in the world has a chance to read it. Now that's some "in front of the story" profit potential.

FREE, FULL Breakthrough Technology Alert Website Access — As soon as you sign up, you'll receive a unique and exclusive Username and Password for the private Breakthrough Technology Alert website. You can look at all my past issues and alerts. You can track the model portfolio. You can read all my special reports.

After all this, you might be wondering what it costs to start receiving Breakthrough Technology Alert and get your hands on your Ultra-Wealth Preparation Pack.

Well, here's my best offer — good only until Midnight, Friday, May 15…

Reply By Midnight, Friday, May 15 —And I'll GIVE You $300 to Begin Your Stream of Ultra Wealth…

The fact is, the profit-potential is so massive — these six companies and their cures could be so revolutionary — that I could easily charge $5,000 or more for you to get your hands on the Ultra-Wealth Preparation Pack…

$5,000 is nothing compared to what you could soon see in life-changing gains — starting as early as Friday, May 15…

$5,000 is a drop in the bucket for the millions you could easily make — the millions you could pass on to future generations of your family.

But it doesn't take $5,000. Not today. Not for you.

Nowhere even near that, in fact...

Normally, just $895 signs up you for Breakthrough Technology Alert and gets you your Ultra-Wealth Preparation Pack.

Today — I'm doing even better than that for you.

Until Midnight, Friday, May 15 — Because the Announcement I'm Expecting Stands To Be SO BIG  — I'm DISCOUNTING the Price $300 More.

Today — because I want you to have the Ultra-Wealth Preparation Pack right now —
you get everything for just $595.

And remember how just $257 can buy you 100 shares each of two key companies — one of which has the CEO making the massive announcement on Thurs, May 14?

The $300 you save by joining me at Breakthrough Technology Alert right now could make you ultra-wealthy — all by itself…

And those profits could easily start by Friday, May 15.

That's the most urgent way I can tell you how critical your reply is right now…

You could use your $300 savings to buy 100 shares each in two of the most urgent companies you'll read about in 6 World-Changing Companies To Deliver Your Ultra-Wealth — and still have $43 left over.

All that potential. Millions upon millions of dollars in potential. For such a small price…

Act today, and you get the Ultra-Wealth Preparation Pack, the alerts, the issues, the full year of picks — EVERYTHING — for just $595.

Just $595. For a chance to become ultra-wealthy. But that's still not all you get…

I Know What Kind of Thinker You Are — I Know What You Want — So Here You Go…

I think I know what kind of thinker you are.

You're smart and successful already. If you weren't — chances are you wouldn't still be reading this report from me today.

So I know you buy for VALUE more than you buy on PRICE.

You're looking for potential. For upside. For the chance at life-changing gains.

And since the urgency for you to claim your spot BEFORE Midnight, Friday, May 15 is so strong — I know I must provide you with even more VALUE…

Which leads me to this…

See, right now you can get your Ultra-Wealth Preparation Pack, read it, and read my monthly issues and weekly alerts — all 100% risk-free.

That's right. I'll even give you 60 full days to see if I'm right. Guaranteed. Even if you're sitting on huge profits in that time, just from the companies I want to tell you all about.

If I'm wrong and you're not happy with the opportunities I can bring you, you can cancel up to midnight on the 60th day of your subscription to Breakthrough Technology Alert and get your entire subscription price back.

No questions asked and you keep everything I've sent you, with my compliments!

But I'm sure you won't ever cancel. Because I'm not just delivering value to you today — I deliver value week in and week out — all year long.

I deliver the chance at life-changing ultra-wealth.

It's risk-free. You can join Breakthrough Technology Alert and read the complete Ultra-Wealth Preparation Pack with no obligation whatsoever. 

So there's absolutely no time to lose. No time to hesitate…

It's the stocks market story of the century — and to see the biggest profits, I absolutely must hear from you before Midnight, Friday, May 15. There's no time to spare…

Claim your position on the inside today for a chance to become ultra-wealthy from what could soon develop into the most important industry in the history of mankind.