10:36 am - Market Report II by Bill Wermine.

Dear Traders,

We held a Master the Markets preview Saturday. 83 PAX attended which were recruited from Martin's Blog/ CIMB I Trade.

9 signed up for our foundation course which is about 11 % . Interestingly, that is the percentage who win in the markets.

Most who came Saturday came for tips/ market outlook/ holy grail .Only 11 % were willing to spend time and money to begin their journey to trading success as evidenced by the number of signups.

I asked how many were bullish and a few raised their hands, the same for bearish. When I asked how many were uncertain and afraid of a big market collapse almost all raised their hands.

Bull markets climb the wall of worry and it seems the majority who came Saturday are worried.

As I mentioned last week LIQUIDITY is the underlying fundamental driving world markets. Liquidity even trumped the jump in US unemployment jump to 9.7 % (highest in 26 years) as the Dow roared ahead over 1 %.

This is a bullish reaction to extreme bad news. Smart investors are moving from paper money to real assets. High quality dividend shares are real assets, commodities also

The breakout in gold proves that. Goldman Sachs, Morgan Stanley, Citi, US treasury officials , all had sell calls in gold before the breakout ! Even the power of these institutions could not stop the breakout.

I went to Maybank last week to buy a 1 ounce Kejang - and they refused my credit card. They said for physical gold they only accept cash. I find that strange. I can buy anything with my credit card but not physical gold.

Because of the big jump in the share price of Am Precious metals, I hesitate to recommend purchases now. Let the powers that be manipulate the price down a bit before jumping in. Wait for a test of the breakout to buy.

AHL Man is long gold and should gold march ahead those who hold Man will indirectly profit by the up trend in gold.


Bill