Updated Stock Picks

• A rough week for the markets.

• Stops raised for the gold stocks.

D.C.

This Week

• Stock markets break to the downside with concern over China tightening credit and a tightened regulatory environment for banks in the US.

• S&P 500 is now down on the month. Could the January effect be portending a down year if the S&P 500 can remain below 1115 by the end of the month?

• Bonds prices rose as the China credit tightening and the uncertainty over the bank regulatory environment pushed yields lower. Watch carefully though a huge $118 billion offering of notes this coming week. If they fail bond prices may falter again. The FOMC also meets this week and the reappointment of Ben Bernanke is in trouble.

• Gold fell as the US$ rose. The same reasons are being cited. Tightening credit in China and the bank regulatory environment are behind the rise in the US$ which helped push gold lower. They are also citing the problems in Europe especially Greece. But is Greece more of a danger than a bankrupt California?

• Gold stocks are cheap as measured by the TSX Gold Index/Gold ratio. It is at levels seen in 1992 and 2000 prior to big gold stock rallies.

• The strong US$ was also cited for oil prices falling. Crucial support at $70 looms.

• Update only. It was not a good week for the markets but 2 of the 4 portfolios had gains.

D.C.

This Week

• The markets make new highs then reverse and close lower signalling at least a pause in the bull.

• The expectation is the potential for a secondary high (either lower or higher) by the last week of January(or first few days of February) then a decline into Mid February before another rally attempt materializes into March.

• Bond prices rose following weaker than expected economic numbers. The bond auction this past week went well.

• Gold prices fell on a strong US$ late in the week. The gold stocks were beat up and were the weakest sector.

• Oil prices and energy stocks also fell on the weak US$ and on a rise in supplies.

This Week

• Updated Stock Picks

• The small hedge on our conservative portfolio is being maintained.

• The conservative portfolio gained 0.2% this past week while the S&P TSX Composite lost 0.8%.

• There is a new addition for the conservative portfolio.

• The gold portfolio gained 2% this past week.

This Week

• It’s January the month of the January barometer. The barometer says how goes January goes the year. And the first five days was up and that barometer is pointing to an up year.

• The poor job numbers steadied the bond market as it rose following a 5 week decline. No interest rate hikes are on the horizon.

• The insatiable demand of the US Treasury continues. This week another $80 billion including a record 3 year note issue.

• Gold jumped this past week as the US$ fell. Are platinum and copper prices who both saw new highs for their up move portending new highs for gold and silver?

• Oil prices are also up and potential targets are $88/$90 and even up to $100.

Technical Scoop – A Recovery Year – But Now What?

• The Technical Scoop is back. Forecast 2010.

• Dow Jones Industrials (DJI) gained 18.8 per cent on the year.

• A look at past financial panics and the recoveries that followed.

Our first Stock Picks Update PDF for 2010.

• S&P TSX Composite has climbed 2.6% since mid December.

• Junior exploration portfolio gains 12.1%

• The small hedge on our conservative portfolio is being maintained.

• Conservative portfolio gains less than 1% since the last report in mid-December.

• The gold portfolio continues its recent rise recouping its losses from early December.