Stock Market Blog -Jan 2nd

Happy New Year to everyone, as I write my first post for 2011. The market was flat this week as expected, though some of the recent leaders started to show signs of weakness.

For 2011, I think one of the trades will be to short Bonds (TBT, TBF..), as long term interest rates start creeping up.

Another trade might be to look at some of the commodity ETFs as prices continue to increase (DBA, DBB, DBC, RJA, etc. see: 123etfs.com).

Energy and alternative energy might be worth considering too (XLE, TAN, etc.).

Of course, the S&P500 (or any other US index: SPY, QQQQ, IWM...) will be in play as well. With all the money printing to stimulate the economy, we could see a boost in the overall stock market.

Gold was up for the 10th year in a row!

Meanwhile, we start off the new year with $14 trillion in debt, and climbing...

Market snapshot

New unemployment claims for the week fell below 400k to 388,000! (chart).
This week, no banks were shut down by the FDIC! (list).

Next week: (Economic reports link). The first significant report for the year will be the monthly jobs report on Friday.

Market commentary: We start off the new year eagerly awaiting the next batch of earnings reports due to begin in about a week. The jobs report on Friday could be a market mover as well.
We could see some selling this week as the technical indicators on the charts seem to suggest.

Commodities (charts):
Oil prices were mostly unchanged, closing just over $91 per barrel.
Natural Gas was up, closing near $4.40.
Gold rallied to close the year at an all time high, around $1421.
The 30 year Bond may have turned up, closing near $122'04.
The US Dollar index dropped, closing around 79.28.

Commodities

News:
U.S. stocks extend gains into second year
Commodities Beat Stocks, Bonds, Dollar in 2010
The Top-Performing ETFs of 2010
Oil Surges to Highest Year-End Price Since 2007 on Dollar
Inflation Scorecard: Gold Wraps Up Year With Record Gains
Bond fund investors face tough new era
Home foreclosures jump in 3rd quarter: regulators
Home Prices Fall; Declines Expected to Continue
Slide show: Review the year 2010 in 10 pictures

Busch: Top 5 Problems for 2011
Tom Lydon Makes the Case for Small Caps, Corporate Debt
Brazil’s new president promises more economic growth
2011 poses challenges for India markets
Chinese stock market posts 15% fall for 2010