One of the big turning points we’ve seen recently is that economic news has improved considerably. I still wouldn’t say that the economy is strong, but we’re a lot better than where we were. The key is that many of the risks that plagued us have slowly melted away. Even our hopelessly dysfunctional Congress seems to have gotten its act together and reached a deal to avert yet another government shutdown. I’ve also been pleased to see things look better in Europe. It was the euro crisis that weighed heavily on U.S. stocks in 2011 and 2012.

While a lot of people have been calling the stock market a bubble, I think we’ve witnessed very much the opposite. Namely, the tremendous fear bubble has deflated. It was only two years ago that the S&P 500 hit its lowest P/E Ratio in over two decades.

Another area where we can see the dissipation of fear is in the credit markets. Bond traders are paid to worry about things, and they’re having a harder time of it. Bespoke Investment Group pointed out that high-yield spreads are at a six-year low, which is a clear sign of optimism. When lenders are afraid, they pull back, and when credit markets freeze up, the whole economy is in trouble. That’s not what’s going on right now.

Things are also looking good for consumers. David Rosenberg, who’s been a long-time bear, has defected to Camp Bull. He noted that the Fed’s recent Beige Book referred to wage pressures 26 times. Folks are also hitting the stores. Retail sales for November rose 0.7%, and the October figure was revised upward to 0.6%. That’s good news for Buy List retailers like Ross Stores (ROST) and Bed Bath & Beyond (BBBY).

Consumers have also been getting their finances in order. Cullen Roche, who’s one of the most astute writers on the economy today, recently declared an end to the “balance sheet recession.” For the first time in several years, households are adding on debt. I realize that may sound like something bad, but in econo-speak, it’s actually good news. More household debt is what needs to happen during an expansion. The long trend of paying down debt was a necessary and painful obstacle for the economy. It’s come to an end.

Even Uncle Sam’s finances are getting better. The U.S. budget deficit, while still massive, is much less massive than it was a few years ago. The deficit for this year will probably be about 3% of GDP, which is down from 10% in 2009. Also, cost-cutting at the local government level (what some people call “austerity”) is largely over.

I’ve also noted that the spread between the 2- and 10-year Treasuries is widening, which is a classic forward-looking indicator for the economy.

In fact, it’s one of the most reliable macro indicators around. What’s particularly interesting is that the yield on the two-year has been fairly stable, while the 10-year has been rising. The 2-10 spread is near the highest it’s been in more than two years. This is a particularly good omen for Buy List financial stocks likeWells Fargo (WFC) and JPMorgan Chase (JPM). Remember that a bank is basically the yield curve with incorporation papers. Now let’s take a look at some two upcoming earnings reports.

….read the entire CWS Market Review HERE

Todd Market Forecast for Wednesday December 11, 2013

Available Mon- Friday after 6:00 P.M. Eastern, 3:00 Pacific.

DOW                                    – 130  on 2050 net declines

NASDAQ COMP                       – 57 on 1350 net declines

SHORT TERM TREND               Bullish

INTERMEDIATE TERM TREND    Bullish    

STOCKS:  If it weren’t for the strong seasonal period, I would be very unhappy about the market action. Investors got all giddy about the mediocre employment report on Friday and pushed the Dow up 200.

         All of this has now been given back and breadth has given even more back. There seems to be increasing concern about a taper announcement next Wednesday from the Fed.

         There may be short term help on the way. Check out the chart.

    GOLD:  Gold gave back $9.

CHART

: The Composite Gauge registered a 15 on Wednesday (arrow). When this happens, there tends to be at least short term strength.

TORONTO EXCHANGE:    Toronto lost a hefty 191.                         

S&P\TSX Venture Comp: The Venture Comp was down by 7.                                                               

BONDS:              Bonds lost ground.                                                                                                                   

THE REST:          The dollar moved to another low. Silver and crude oil were down. Copper managed a rally.                                                                         

BOTTOM LINE:  

Our intermediate term systems are on a buy signal.  

System 7    We are long the SSO from 97.92. If there are more declines than advances on Thursday at 3:45 Eastern, sell at the close.          

System 8   We are in cash. Stay there on Thursday.                               

NEWS AND FUNDAMENTALS: 

There were no important news releases on Wednesday.  On Thursday we get jobless claims and retail sales.     

We’re on a sell for bonds as of  November 20.                    

We’re on a sell for the dollar and a buy for the euro as of November 13.                              

We’re moving back to a buy for gold as of today December 10.      

We’re moving back to a buy for silver as of today December 10.             

We’re on a buy for crude oil as of  December 6.              

We’re on a buy for copper as of  November 21.                   

We’re on a sell for the Toronto Stock Exchange as of  December 5.           

We are on a sell for the S&P\TSX Venture Comp. as of November 20. 

We are long term bullish for all major world markets, including those of the U.S., Britain, Canada, Germany, France and Japan.    

INDICATOR PARAMETERS

     Monetary conditions (+2 means the Fed is actively dropping rates; +1 means a bias toward easing. 0 means neutral, -1 means a bias toward tightening, -2 means actively raising rates). RSI (30 or below is oversold, 80 or above is overbought). McClellan Oscillator ( minus 100 is oversold. Plus 100 is overbought). Composite Gauge (5 or below is negative, 13 or above is positive). Composite Gauge five day m.a. (8.0 or below is overbought. 13.0 or above is oversold). CBOE Put Call Ratio ( Below .80 is a negative. Above 1.00 is a positive). Volatility Index, VIX (low teens bearish, high twenties bullish), VIX % single day change. + 5 or greater bullish. -5 or less, bearish. VIX % change 5 day m.a. +3.0 or above bullish, -3.0 or below, bearish. Advances minus declines three day m.a.( +500 is bearish. – 500 is bullish). Supply Demand 5 day m.a. (.45 or below is a positive. .80 or above is a negative).

      No guarantees are made. Traders can and do lose money. The publisher may take positions in recommended securities.

Knightscope Inc. has introduced a crime-fighting R2D2 look-alike robot with an effective cost of $6.25 per hour. 

 Silicon Valley startup Knightscope Inc. is developing an “Autonomous Data Machine” with the potential to perform the oftentimes monotonous task of keeping watch over property more cost effectively and comprehensively than a human security guard. The company today revealed it has already started securing beta customers for its first two models, the Knightscope K5 and K10.

The robots, which share a passing resemblance to R2-D2, collect real-time data via a network of sensors. These sensors can include a 360-degree high definition video camera, high quality microphones, thermal imaging sensor, infrared sensor, radar, lidar, ultrasonic speed and distance sensors, air quality sensor, and optical character recognition technology for scanning things like license plates.

Knightscope says the K10 model is intended for vast open areas and on private roads, while the K5 robot is better suited to more space-constrained environments.

K5 vs. R2D2

K5 Closeup

….continue reading HERE

Digital marketing as a mega-trend is quickly revealing Early Adopters and Laggards. Where are you on that spectrum?

A brief history of business technology:

• In the late 1980s you had to have a fax machine (and fax number on your business card) in order to be seen as a credible business
• In the late 1990s, no legitimate company would be caught dead without a website (in fact, any company without a website was probably dying as a result)
• In the late 2000s (and more so everyday), any business without a proactive plan to manage social media was falling behind its competition
• In the 2010s, if you still have a fax machine (and fax number on your business card), you may be in more trouble than you thought

Increasing your web presence and social media footprint has never been more urgent. Whether you’re just starting a business or trying to make an existing one more accessible and appealing to customers, now is the time to dump the fax machine, jump on SEO, and avoid extinction. Take a look at the Diffusion of Innovation bell curve.

With respect to a viable web presence, where would you plot your company on this adoption curve? The latest adopters in this familiar model have traditionally been labeled “Laggards,” but in the world of SEO and social media, latecomers are plain old Dinosaurs because of the extinction-level event that is created by their inattention.

Finding a good SEO partner

Forbes.com contributor Joshua Steimle wrote an excellent article, 4 Tips For Hiring The Right SEO Firm, that might help those in need of this service cut through the fog that shrouds the overly crowded SEO industry. It is perhaps the ultimate irony that anyone searching the Internet for a company that can help them become more visible on the Internet, can easily experience confusion and information overload.

My company has used several SEO firms over the years. Some I would recommend and others I wouldn’t. Here are two that have done well by me.

Boostability. After interviewing Boostability’s CEO, and writing an articleabout the company, I was impressed enough to sign up as a client. Not having used them for very long, it’s hard to say what the long-term results will be, but their attention to detail and service levels have been stellar. Also, they seem to understand my business. For example, my rep is helping me extend the reach of my writing beyond Forbes.com, which is a good thing for a writer. So far, so good.

Mabbly. After using Mabbly for a while, I saw a relatively quick positive impact. What I like about Mabbly is the fact that they will work without a long-term contract. Also, they have a startup package that is pretty reasonably priced.

Whichever SEO vendors you choose, and however you find them, go forward with this strategy as fast as you can. Don’t be a dinosaur. And if you ever want to contact me—no faxes, please!

Follow me on Twitter @larrymyler, “Like” me on Facebook, or Contact me at lmyler@bymonday.com.