The Yankees are led by a core of four men -- Derek Jeter, Andy Pettitte, Jorge Posada, and Mariano Rivera -- who all came to the club in 1995.

They're no spring chickens, that's for sure. Thankfully, the players are supported by a great organization, which includes top-notch medical care, oftentimes right there in the clubhouse, which is equipped with X-ray and sonogram equipment.

Continue reading World Series trade #5: Sonosite (SONO)

World Series trade #5: Sonosite (SONO) originally appeared on BloggingStocks on Sun, 01 Nov 2009 11:00:00 EST. Please see our terms for use of feeds.

New York and Philadelphia have some of the most hardcore fans in Major League Baseball. These fans don't just get excited about a game as big as the World Series, they get stressed out.

And stress isn't good for anyone's health, and neither are the hot dogs New York fans will gorge themselves on, or the cheese steaks the Philadelphia fans will wolf down. Plus, fans in both cities are going to be washing that heart-attack-waiting-to-happen chow down with too much beer. No doubt many of them will be suffering from sleep apnea.

Continue reading World Series trade #2: ResMed (RMD)

World Series trade #2: ResMed (RMD) originally appeared on BloggingStocks on Sat, 31 Oct 2009 13:00:00 EST. Please see our terms for use of feeds.

Do you see a rebound?

The Mall of America would be a great practice field for the Minnesota Vikings, fall and winter clothes are already 40% off at Macy's, and the Palms in Vegas is mailing me coupons.

Recently, I went out to eat with some friends: One owns a construction business that has come to a standstill; two are media types out of work; and one is the owner of a small manufacturing company, who is laying people off as fast as she can and is now worried about her own survival. And I'm sure you've heard similar tales of woes from your family, friends and neighbors.

Continue reading Reason #10: Take a good look around

Reason #10: Take a good look around originally appeared on BloggingStocks on Sun, 25 Oct 2009 13:00:00 EST. Please see our terms for use of feeds.

Historically, the Fed has lowered interest rates to spur spending and investment.

Well, the Fed has already cut interest rates to banks down to essentially zero. The media are screaming about potential inflation due to the trillion dollars the Fed put into the system, but that trillion has simply replaced the trillion written down by the banks, which have another trillion and a half in write-downs to go.

Continue reading Reason #9: The Fed can't do it either

Reason #9: The Fed can't do it either originally appeared on BloggingStocks on Sun, 25 Oct 2009 12:00:00 EST. Please see our terms for use of feeds.

In the past, the government has increased spending and cut taxes to spur spending during times of economic crisis.

However, Uncle Sam is now in so much debt that this is no longer a serious option. And it looks like we are going to spend another $900 billion-plus on health care reform over 10 years (a lot of money, sure, but about a third less than what Wall Street will spend on bonuses).

Continue reading Reason #8: Uncle Sam can't bail us out

Reason #8: Uncle Sam can't bail us out originally appeared on BloggingStocks on Sun, 25 Oct 2009 11:00:00 EST. Please see our terms for use of feeds.

Businesses do not see a turnaround in 2010. Even with public figures talking up the economy (and who can blame them, it's practically in their job description) businesses are not listening. If consumers aren't spending, why should businesses?

For example, Intel (NASDAQ: INTC) said the year will close strong, although it still will be down compared to 2008. This end-of-the-year optimism is being driven by a once-in-five-year change in the Windows operating system -- something that should have created booming demand, not a modest uptick.

Continue reading Reason #7: Businesses aren't spending

Reason #7: Businesses aren't spending originally appeared on BloggingStocks on Sun, 25 Oct 2009 10:00:00 EST. Please see our terms for use of feeds.

Excess capacity is everywhere -- we have more than enough people, factories, stores, and so on to meet current demand.

Want to buy an indoor mall? You can get one in North Myrtle Beach for $3.3 million -- less than the previous value of many homes in that area.

Continue reading Reason #6: Excess capacity

Reason #6: Excess capacity originally appeared on BloggingStocks on Sun, 25 Oct 2009 09:00:00 EST. Please see our terms for use of feeds.

By year-end 2009, we will see a more than $4 trillion pullback in credit lines. And we are a country that runs on credit. In fact, the entire growth in consumer spending from 1997 to 2008 was paid for with home equity lines and credit cards.

Credit standards are already impossibly high. My credit lines literally shrink every month because I do not use them. But what if I needed them? And I almost couldn't get a lease for a new car even though I have never missed a bill payment. The majority of people cannot borrow money and, therefore, cannot spend. This will not change in 2010.

Next: Reason #6: Excess capacity

Reason #5: The credit crunch will continue originally appeared on BloggingStocks on Sat, 24 Oct 2009 14:00:00 EST. Please see our terms for use of feeds.

Not only are consumers not spending, their actual attitudes toward spending have changed.

Even for the six people on the block who are flush with cash, frugality is the new chic. My neighbors, high-end Saab and Volkswagen types, just bought a Kia Sportage for their daughter (nice car, by the way).

Continue reading Reason #4: Changing consumer attitudes

Reason #4: Changing consumer attitudes originally appeared on BloggingStocks on Sat, 24 Oct 2009 13:00:00 EST. Please see our terms for use of feeds.

A fear of a loss of income will continue to squelch consumer spending. Most people I know are fearful about their futures -- i.e., losing their jobs or seeing a cut in commissions, profits, or wages. This means they will hang on to their pennies in 2010.

Bottom line: Consumers drive 70% of GDP, and a meaningful recovery will not happen without their dollars.

Next: Reason #4: Changing consumer attitudes

Reason #3: Consumers are afraid to spend money originally appeared on BloggingStocks on Sat, 24 Oct 2009 12:00:00 EST. Please see our terms for use of feeds.

The pundits on CNBC get all giggly when we lose "only" 550,000 jobs -- a true sign of the times. Uber analyst Meredith Whitney, one of the few people on Wall Street who has been worth listening to during the past three years, is forecasting 13% unemployment in 2010 or 2011.

Officially, unemployment currently stands at 9.8%. But if you add in part-time workers wanting more work and the people who are so discouraged they have stopped looking, the number is a shocking 20%.

Continue reading Reason #2: The jobless recovery

Reason #2: The jobless recovery originally appeared on BloggingStocks on Sat, 24 Oct 2009 11:00:00 EST. Please see our terms for use of feeds.

People not only feel poorer, they are poorer. Personal wealth will continue to decline in 2010, as home prices fall even further, fueled by a wave of 7 million homes that will go into foreclosure in the next 12 to 18 months. And foreclosure rates will remain above historical norms well beyond that.

More foreclosures mean more downward price pressure in the housing market. And homeowners will experience a commensurate loss of wealth as the value of their homes decline. And this is on top of all the money that had previously been lost in the stock market -- as much as 40% of accumulated consumer wealth.

Continue reading Reason #1: Dramatic loss of wealth

Reason #1: Dramatic loss of wealth originally appeared on BloggingStocks on Sat, 24 Oct 2009 10:00:00 EST. Please see our terms for use of feeds.

Think the economy is recovering? Think again.

Forget the noise and statistics thrown around by the politicos and pundits. We are not at the end of this recession -- we are in the middle of it.

This will not be a V-shaped recession and recovery, folks. It is a U-shaped one at best, meaning we have a while to go before things truly pick up. But, more than likely, we are dealing with a W-shaped recession, and we are near the end of the second leg ... and then down we go.

Continue reading Ten reasons the economy won't recover in 2010

Ten reasons the economy won't recover in 2010 originally appeared on BloggingStocks on Sat, 24 Oct 2009 09:00:00 EST. Please see our terms for use of feeds.

The eeriest reason you should be wary of a pullback in October is the similarity between the chart of the rally that began March 9 and the 1937-1938 rally, which was followed by a sharp pullback.

They are practically identical -- seriously, check it out.

This could be a harbinger of a major slide beginning no later than December, but probably starting in October.

Continue reading Sign #10: An eerie similarity

Sign #10: An eerie similarity originally appeared on BloggingStocks on Sun, 20 Sep 2009 13:00:00 EST. Please see our terms for use of feeds.

Two key elements of the market's rise -- short-sellers covering their positions and money managers looking for quick profits -- are waning, reducing buy-side volume.

This will eventually impair the market's ability to sustain itself as more shorts are entering the market and more managers are preparing to bank profits before the end of their year on Nov. 1.

Next: Sign #10: An eerie similarity

Sign #9: Short covering and money managers looking to bank profits originally appeared on BloggingStocks on Sun, 20 Sep 2009 12:00:00 EST. Please see our terms for use of feeds.

Market volume is so light that many technicians do not see the rise in the indices as "real." They want to see increased buying volume to confirm another upward leg in the rally.

While volume may increase in the short term, it still will be considered light, as many investors are very cautious (and should be) about getting in after a 40% rise in the markets. Without heavier volume, the market is very vulnerable to a downturn.

Next: Sign #9: Short covering and money managers looking to bank profits

Sign #8: Light volume originally appeared on BloggingStocks on Sun, 20 Sep 2009 11:00:00 EST. Please see our terms for use of feeds.

The market has been indiscriminate in this rally, pushing up 487 out of 500 S&P stocks. This level of irrationality is ending, and certain segments are going to take a hit.

Once this happens, the broad-based support for the S&P 500 will erode brick by brick.

Next: Sign #8: Light volume

Sign #7: An indiscriminate rally originally appeared on BloggingStocks on Sun, 20 Sep 2009 10:00:00 EST. Please see our terms for use of feeds.

Now that we've covered a few of the fundamental reasons the market is likely headed down in October, let's turn to some of the technical reasons.

First, the market is overbought by almost historical norms. And the rally, which began March 9, is having more and more trouble piercing technical ceilings.

Major resistance levels are 1,045, 1,075 and 1,110 on the S&P 500. And a major failure at one of these levels could be a tip-off that the slide has begun.

Next: Sign #7: An indiscriminate rally

Sign #6: The market is overbought originally appeared on BloggingStocks on Sun, 20 Sep 2009 09:00:00 EST. Please see our terms for use of feeds.

The market is radically overvalued based on current earnings. Historical norms say the S&P 500 should be at 850, not 1,065.

And the depressed economy will lead to depressed earnings next year, which means the market will be even more overvalued than it is at current levels.

This will be made clear with October earnings announcements.

Continue reading Sign #5: Earnings will disappoint

Sign #5: Earnings will disappoint originally appeared on BloggingStocks on Sat, 19 Sep 2009 13:00:00 EST. Please see our terms for use of feeds.

The current drivers of the market -- commodity speculation, green shoots euphoria, and enthusiasm over China thanks to fabricated Chinese economic data -- will be played out in the next few weeks.

Absent these drivers, there are no positive catalysts left to underpin a rising market.

Next: Sign #5: Earnings will disappoint

Sign #4: No positive catalysts on the horizon originally appeared on BloggingStocks on Sat, 19 Sep 2009 12:00:00 EST. Please see our terms for use of feeds.