Ian Cooper - Angel Publishing

Spot Market Bottoms

Welcome to the Wealth Daily Weekend Edition — our insights from the week in investing and links to our most-read Wealth Daily and sister publication articles.

It's the perception that our recession is over that's got people excited...

And thanks to UPS, that perception is a bit stronger. According to UPS CEO Scott Davis, "It looks like this recession is finally over and believe it or not, that makes 21 that UPS has successfully managed through."

But we're a bit skeptical as unemployment remains high, as housing struggles, and as foreclosures have only begun to mount.

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You see, we've only just turned the corner. Mark Zandi, chief economist at Moody's, agrees that the economy isn't out of the woods yet: "it appears to have turned the corner," he says, echoing our sentiments.

But he is hopeful for the next few months: "Certainly by spring and summer, we'll start to see some growth. If history is any guide, when GDP rises... then, a quarter or two down the road, businesses start to add to their payrolls, so the start to hire. So that means, come April, May, June, I'd expect some job growth."

While that'd be nice, remember this much: There are still the three headwinds we mentioned above. And according to Zandi:

[There's also] a lack of credit, particularly for small business; they need that credit to go and out to hire. The housing crisis continues on. We have lots of foreclosures, and that could drive down housing prices further. Commercial real estate is a problem, and of course, state and local governments all across the country have big budget holes, and if they don't get help from the federal government, they'll be cutting jobs and programs. So, it's good news, but not good enough.

Looks like great minds think alike... We've been saying the same thing for months.

Over at the Options Trading Pit, we've been eyeing new profit opportunities with this turbulent market as our catalyst.

Here's a very easy way to find those profit opportunities... like we're doing in Options Trading Pit:

Take a look at the last dip on all of the major indexes. Let's use the Dow as an example. Take a look at the chart with RSI, MACD, and W%R overlays with Bollinger Bands. Not only do we have a doji cross sitting outside the lower Bollinger Band, but we have an oversold read on MACD and W%R. Also take a look at RSI... It's sitting right where it was at March 2009 lows, which we bounced off of very hard to the upside.

And shortly after we released that note to Options Trading Pit readers, the market bounced back very nicely.

But if you're not interested in using TA for gains, here's where some other opportunities exist:

Rare earth metals are still one of the hottest sectors to be in today... and that's because it's the "newest great interest" among investors amid heavy, growing demand. Countries risk running out of supplies of certain rare earth metals vital to green technologies amid growing fears that China, which has a monopoly on global production, is about to choke off exports of the much-need metals. But let them... Greenland has $273 billion worth — this is "the" market to be involved with.

Stay Ahead of the Curve,

Ian L. Cooper
Wealth Daily

P.S. In case you missed any of the week's top-read articles from Wealth Daily and our sister publications, you can catch up on them now:

Green Dividend Stocks: Green Stocks That Pay Investors a Bonus
Green Chip Editor Nick Hodge discusses green dividend stocks, how to identify them, and why they're a good buy during rough times.

Seven Reasons to Invest in China: I'm with Jim Rogers on This One...
Wealth Daily Editor Chris DeHaemer debunks the experts' take on a soon-to-pop Chinese real estate bubble, and explains why now is a good time to be bullish on the Middle Kingdom.

"China's Pantry": The Asian Nation Soon to be Beijing's Top Growth Partner
Wealth Daily reports as our insiders feed us the 24 resources deals that will make this tiny nation on China's northwest border the world's last mega-boom profit opportunity.

Nuclear Energy Stocks: Nuclear Hurdles & Profitable Leaps
Energy & Capital Editor Nick Hodge discusses nuclear energy stocks and why they're in for an imminent revival.

This Mistake will Cost Us Big: How You Can Take Advantage
After 28 straight months of research, interviews, site visits, number crunching, and answering to critics... Wealth Daily analysts have swallowed the jagged pill that is our mistake regarding the Bakken oil formation: We missed the mark. But our error could mean your benefit... and money in your pocket.

2010's Investing Pitfalls: Analysts Calling for a Pleasant 2010 Might Be in for a Nasty Surprise...
Wealth Daily Analyst Adam Sharp examines potential market pitfalls of 2010.

FHA Defaults: Many More on the Horizon - The New Subprime
Wealth Daily's Steve Christ reports: When this one finally comes tumbling down the taxpayers will be on the hook for every single penny of it. You see, those awful subprime loans never really disappeared.

Apple iPad Hype

Welcome to the Wealth Daily Weekend Edition — our insights from the week in investing and links to our most-read Wealth Daily and sister publication articles.

"Crazy" isn't even the right word to describe this market...

That's because people are spooked. They're looking for any reason to sell. They're ignoring great earnings reports, opting to sell on fears that Obama is anti-business; or that inflationary fears are growing; or that the "recovery" isn't real after all; or that job growth is going to be tougher than expected.

Even reports that GDP grew at a 5.7% pace weren't even to spur a buying stampede.

There's also the question of why there's all this emphasis on jobs now. Why didn't this happen a year ago when millions of people lost their jobs?

It's because Congress thought they defeated the problem. Just take a look at the proposed budget for 2010 with the assumption — according to reports — that the unemployment rate would peak at 8.1% in 2009, then fall to 7.2% in 2010.

And some of this week's insanity in particular is understandable when you're waiting on:

Bernanke's confirmation hearing (he was confirmed Thursday);
Tim Geithner's skewering before Congress;
The FOMC meeting (rates were left unchanged);
The State of the Union address (which didn't exactly spur market bullishness)...

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So, how do you make money?

By knowing this: It's not about being a bear or bull in this market. It's about being where the profit opportunities are — whether long or short.

Here are some ideas to chew on:

The rumors have ended. Apple finally announced its latest product — the iPad — and was greeted with mixed reviews. Consumers went as far as to nickname the e-reader "the iTampon." While some peg Apple with an eventual price tag of $300 with the iPad, others are a bit more skeptical. Wealth Daily's Adam Sharp provides five reasons why iPad could fail. Those who like the product's new chances, however, think the touch-screen device could be a challenge to net-books and e-readers. Critics, on the other hand, though they believe the unit could sell well, still see it as a larger version of the iPod. They don't think it has a real chance.

Sure, Apple has created a great product with a great price point. But will many people buy it? People that are already "tech overloaded" and have an iPod, iPhone, and iMac? If that's the thinking, the hype and demand for such a product may last near term. Long term, though, the company has created a product far beyond an e-reader... they've created an e-entertainment device.

If you're a buyer, plan to hold long term. But why pay $200 for a share of Apple? Why not find a smaller company that sells parts to Apple? Apple's growth could mean big money in the bank. Options Trading Pit, for one, is hunting down such companies.

Keep an eye on the short side of the telecom industry, too. It seems investors are starting to worry about price wars among carriers and handset companies that are fighting over market share in a market where there's an increase in the number of products and new operating systems. According to recent reports, Motorola saw short interest rise 52% to about 58 million shares; Qwest short interest was up 15% to 76 million; and short interest was up 14% to 64 million for AT&T. Consider buying put options on these, though. The max gain you can make short-selling is 100%.

Also, keep an eye on foreclosures — and the companies that benefit from them. Options Trading Pit just unveiled the two to own in a new special report. To say the end to our foreclosure woes is in sight is as premature as saying terrorism is under control. Unemployment will continue to climb. Consumer spending will suffer. And housing is only expected to worsen, as more resets rear their ugly heads. There is no recovery in housing. The crash is far from over. Even Moody's doesn't see an end to the housing meltdown, believing that home prices will soon start moving back down because of coming foreclosures.

But the most devastating of all could be the coming Option ARM (adjustable rate mortgage) resets of 2010 and beyond. It could easily lead to higher unemployment, housing glut, decreased home values, and the death of the cash-strapped consumer. What do you think will happen when monthly payments on a $400,000 mortgage jumps from $1,287 to $2,593?

With Apple, the telecom industry, and coming foreclosures... the max you can make with a short is 100%.

And gains are much better with options. We've heard from some of you daily, asking how to trade options with the lowest possible risk. Which is why we just began teaching the ins and outs of options with our newly launched Options Trading Coach... We're also recommending 1-2 trades every month with a target of solid, consistent gains.

Stay Ahead of the Curve,

Ian L. Cooper
Wealth Daily

In case you missed any of the week's top-read articles from Wealth Daily and our sister publications, you can catch up on them now:

"China's Pantry": The Asian Nation Soon to be Beijing's Top Growth Partner
Wealth Daily reports as our insiders feed us the 24 resources deals that will make this tiny nation on China's northwest border the world's last mega-boom profit opportunity.

2010 Commercial Real Estate Forecast: No Spin Zone - CRE Plunge is Inevitable
Wealth Daily Editor Steve Christ takes a look at the commercial real estate forecast and explains why the sector will sink into 2012.

China's Huge Oil Demand: The Middle Kingdom Secures Future Energy Needs while U.S. Sits on the Sidelines
Editor Christian DeHaemer describes China's buying up of global oil assets while Obama watches from the sidelines, and reveals what the Middle Kingdom will buy next...

Spain's Solar Power Market Meets Morocco: Europe Looks South for Clean Energy Growth
International Editor Sam Hopkins highlights Morocco's role in reinvigorating the Spanish solar power market and generating more local energy for North Africa.

Buy Gold at Just 2% of Today's Spot Price: You Heard it Here First
It's all thanks to one of North America's greatest gold secrets: the Boise Basin. Wealth Daily reports on the company whose $27 million in assets now exceed $727 million.

The Next "Peak" Trade: China Has the Next Move
Wealth Daily's Ian Cooper tells readers about China's plans to stop exporting these elements to the rest of the world by 2012... and how this move could cripple the rest of the world via the coming collapse of available rare earth metals.

We Made a Bakken Boo Boo: And We're the First to Admit It...
After 28 straight months of research, interviews, site visits, number crunching — and answering to critics — Wealth Daily analysts have swallowed the jagged pill that is our mistake regarding the Bakken oil formation: We missed the mark. But our error could mean your benefit... and money in your pocket.

How to Profit from Energy Efficiency: The NYSE Itself is Bullish on this Tech
Energy & Capital Editor Nick Hodge discusses the business of energy efficiency and how investors can profit as global companies optimize their operations.

Reduce Your Monthly Energy Bill by 44%: How You Can Stick it to Your Power Company
The tech behind this little company is a foolproof winner. It makes so much sense, for so many reasons, that Alternative Energy Guru Nick Hodge has no doubt everyone will be using it within the next decade.

The Next "Peak" Trade...

The market remains a mystery these days, shrouded in fear of Ben Bernanke's confirmation and fear that our recovery isn't as strong as first thought. But we remain long with all open positions, especially our long-term rare earth trades, as reports say global supplies of rare earth could be wiped out by 2012.

China holds 97% of the world's rare earth supply, and China is preparing to stop exporting these elements to the rest of the world by 2012... And if that happens, we'll be crippled by the coming collapse of available rare earth metals. In fact, according to reports, "manufacturing of everything from computers and electronics to farm machinery will grind to a halt. Electronics will disappear from the shelves and prices for manufactured goods that depend on these rare elements will skyrocket."

According to The Independent, by 2012 China could cease all exports of rare earth elements, reserving them for its own economic expansion. The paper also quotes Jack Lifton, a rare earth expert, who says, "A real crunch is coming. In America, Britain and elsewhere we have not yet woken up to the fact that there is an urgent need to secure the supply of rare earths from sources outside China."

And believe it or not, many haven't even heard of the problem.

But they have to wake up or we'll be screwed.

Think about this. Without these rare earth elements, we'd have no iPhones, car stereos, and no electric motors. This is real, folks.

The other problem is that demand is outpacing supply. Over the last decade, demand has risen from 40,000 tons to more than 120,000 tons. And get this - in order to build more green technologies, for example, the world will need 20,000 tons of rare earth by 2014, according to The Independent.

This, as China threatens to drop exports to nothing by 2012 - which could be met with the disappearance of wind turbines, the Toyota Prius, the iPhones and iPods.

But there's a very easy way to profit from this story, which you can read about here.

Here's more from The Independent:

Concern as China clamps down on rare earth exports
By Cahal Milmo

Britain and other Western countries risk running out of supplies of certain highly sought-after rare metals that are vital to a host of green technologies, amid growing evidence that China, which has a monopoly on global production, is set to choke off exports of valuable compounds.

Failure to secure alternative long-term sources of rare earth elements (REEs) would affect the manufacturing and development of low-carbon technology, which relies on the unique properties of the 17 metals to mass-produce eco-friendly innovations such as wind turbines and low-energy lightbulbs.

China, whose mines account for 97 per cent of global supplies, is trying to ensure that all raw REE materials are processed within its borders. During the past seven years it has reduced by 40 per cent the amount of rare earths available for export.

Industry sources have told The Independent that China could halt shipments of at least two metals as early as next year, and that by 2012 it is likely to be producing only enough REE ore to satisfy its own booming domestic demand, creating a potential crisis as Western countries rush to find alternative supplies, and companies open new mines in locations from South Africa to Greenland to satisfy international demand.

Amid claims that Beijing is using its rare earths monopoly as a tool of foreign policy, the British Department of Business, Industry and Skills said it was "monitoring" the supply of REEs to ensure China was observing international trade rules.

Jack Lifton, an independent consultant and a world expert on REEs, said: "A real crunch is coming. In America, Britain and elsewhere we have not yet woken up to the fact that there is an urgent need to secure the supply of rare earths from sources outside China. China has gone from exporting 75 per cent of the raw ore it produces to shipping just 25 per cent, and it does not consider itself to be under any obligation to ensure supplies of rare earths to anyone but itself. There has been an effort in the West to set up new mines but these are five to 10 years away from significant production."

After decades in which they were considered little more than geological oddities, rare earths have recently become a boom industry after the invention of a succession of devices, including iPhones and X-ray machines, which rely on their specific properties.

Global demand has tripled from 40,000 tonnes to 120,000 tonnes over the past 10 years, during which time China has steadily cut annual exports from 48,500 tonnes to 31,310 tonnes.

Worldwide, the industries reliant on REEs, which produce anything from fibre-optic cables to missile guidance systems, are estimated to be worth £3 trillion, or 5 per cent of global GDP.

Beijing announced last month that it was setting exports at 35,000 tonnes for each of the next six years, barely enough to satisfy demand in Japan. From this year, Toyota alone will produce annually one million of its hybrid Prius cars, each of which contains 16kg of rare earths. By 2014, global demand for rare earths is predicted to reach 200,000 tonnes a year as the green revolution takes hold.

Nearly all of China's supply of rare earths comes from a single mine near the city of Baotou, in Inner Mongolia. The remainder comes from small and sometimes illegal mines in the south of the country, leading to devastating pollution from the poisonous and sometimes radioactive ores.

Environmentalists argue that this, coupled with widespread criticism of China's stance during the Copenhagen climate summit, adds to the need for a "plurality" of rare earth resources. One campaigner said: "There are legitimate questions over Beijing's control of these resources. Copenhagen showed they are not above putting national interest ahead of global efforts to curtail global warming."

Once extracted and refined, the rare earth metals can be put to a dizzying range of hi-tech uses.

Neodymium, one of the most common rare earths, is a key part of neodymium-iron-boron magnets used in hyper-efficient motors and generators. Around two tonnes of neodymium are needed for each wind turbine. Lanthanum, another REE, is a major ingredient for hybrid car batteries (each Prius uses up to 15kg), while terbium is vital for low-energy light bulbs and cerium is used in catalytic converters.

In October, an internal report by China's Ministry of Industry and Information Technology disclosed proposals to ban the export of five rare earths and restrict supplies of the remaining metals. Beijing strenuously denied that the document was an accurate reflection of its strategy, saying it had no desire to reduce trade in rare earths. But The Independent understands that the level of demand in China means that supplies of at least two crucial REEs - terbium and dysprosium - are likely to be curtailed by as early as next year.

Dr Ian Higgins, general manager of Birkenhead-based Less Common Metals, which specialises in rare earth products, said: "There is a threat that in the next 12 to 18 months, there might be some quite severe shortages of these rare earths. That is certainly going to impact those hi-tech green industries outside China."

Both Western countries and China are already dashing to secure new sources of rare earths. Last year, Australian regulators imposed restrictions on the purchase of one of the country's richest rare earth mines, causing a Chinese company to walk away from a £400m deal to buy its operator.

European and North American companies are meanwhile racing to open or re-open mines in Canada, South Africa and Greenland amid calls in the US for government-backed loans to secure supplies of some REEs which are used in the guidance systems of missiles and laser-guided munitions. Toyota has effectively bought its own rare earth mine in Vietnam by signing an exclusive supply deal.

The Department for Business, Industry and Skills acknowledged the growing concern in Western capitals. A spokesman said: "We are monitoring the situation, particularly with regard to World Trade Organisation rules. We are working with UK industry to assess the long-term demand for strategically important resources, including rare earth elements."

Record High Foreclosures and Option ARM Resets

With headlines of higher default rates for Option ARMs about to be a daily occurrence, is there a way to profit from others' misfortunes?

Yep...

But let's first look at the size of the crisis... and why the crisis is far from over.

To say the end to our woes is in sight is as premature as saying terrorism is under control.

Unemployment will continue to climb. Consumer spending will suffer. And housing is only expected to worsen, as more resets rear their ugly heads.

Largest Gas Find in U.S. History Sparks "Louisiana Land Rush"

This is big... real big. In the swampy outskirts of Red River Parish, Louisiana -- 271 miles northwest of New Orleans -- a group of scientists made the discovery of a lifetime...

What they found more than 1,000 feet beneath the surface is the single largest natural gas deposit in U.S. History... and so far, the fourth largest deposit ever found on earth!

The four companies at the forefront are already up 51%, 80%, 41% and 66% -- since March 2009. And they're poised to run even more.

Isn't it time you made similar gains?

Sure, construction of new homes (helped by good weather) rebounded in November. And sure, the gain is a hopeful sign of a housing recovery. And yeah, sales have surged in recent months, as home buyers scrambled to take advantage of the first time home buyer tax credit...

But there's only one problem with the bullishness: It's overdone.

There is no recovery. The crash is far from over. Even Moody's doesn't see an end to the housing meltdown, believing that home prices will soon start moving back down because of coming foreclosures.

Another obstacle for the housing recovery is the number of mortgages that are underwater where borrowers owe more than what the house is worth. This negative equity doesn't qualify those people for refinancing and even prevents them from selling the home, often resulting in "strategic defaults."

But the most devastating of all could be the coming Option ARM (adjustable rate mortgage) resets of 2010 and beyond. It could easily lead to higher unemployment, housing glut, decreased home values, and the death of the cash-strapped consumer.

What do you think will happen to housing when the resets happen? What do you think will happen when monthly payments on a $400,000 mortgage jumps from $1,287 to $2,593?

This is reality. And savvy investors will play it smartly.

Sure, you can short housing names and housing-related retailers... but everyone knows about those. You have to invest where the sheep haven't been.

You have to invest in the very stocks that benefit as foreclosures worsen... you have to buy the companies that help when foreclosures mount... and you have to do it fast, as the sheep catch on.

Here's why...

The Year of Option ARM Resets. . . and Why There's No Foreseeable Bottom

About a year after the Obama Administration unveiled the housing rescue program, foreclosures continue to hit new records. More than 2.8 million properties were foreclosed upon in 2009, up some 21% from 2008 and up more than 120% from 2007, according to RealtyTrac.

And another three million could foreclosure this year alone.

And they find themselves in foreclosure because:

They couldn't afford the properties they bought;
Jobs were lost... and is only expected to worsen;
And others are just walking away because "it's not best for their finances... "

These "walk aways" or "strategic defaults" have more than doubled from 588,000 from 2007 to 2008, according to reports.

And there will be more, as financial "experts" tout the benefits of walking away from mortgages.

Does that sound like a recovery in process to you?

Unfortunately, just as 2007 and 2008 were the years of subprime woes, this one will go down as the year of Option ARM resets. With billions in Option ARM resets in 2009 and 2010, this crisis is about to unleash a fury no one's prepared for.

It won't be as bad as subprime, of course. It'll be worse.

That's because lenders created these ARMs with "teaser" features for borrowers, which included making lower minimal payments for the first few years before the loan reset to a higher payment schedule.

And if that weren't bad enough, there was another feature called "negative amortization," which meant you weren't paying back any principal.

In fact, with negative amortization loans your loan balance increased over time. Incredulously, every time you made a payment, you owed the bank even more. These are the loans that allowed consumers to buy houses they couldn't otherwise afford.

As for speculators, they may use negative amortization loans if they believe prices will increase at a fast pace. But with the opposite happening, they're out of luck.

And the banks will be left holding the bag.

Big banks and mortgage services face a huge increase in mortgage delinquencies this year. And the government's program to modify troubled home loans is "ill-equipped to handle even the current volume of modifications," say reports.

At issue are the Alt-A and Option ARMs that became wildly popular before the financial crisis. You see, as the subprime market surged to $1 trillion, the Alt-A and Option ARM markets far exceed $1.5 trillion... meaning the ARM crisis is far worse than subprime.

But as we've said, there is a very easy way to profit as the foreclosure crisis worsens... you buy and hold the companies that process foreclosures and make a killing as it happens.

And we've got two companies will profit from the rampant increase in foreclosures and defaults.

Unfortunately, if we mention there names here, we run the risk of running the two stocks to the moon... something we really don't want to do. So, we've prepared a special report for Options Trading Pit readers that unveils the stock names, and how to play them with options, as well.

But you've got to hurry. One of the options is already up some 40% in about a week.. and we only expect further growth from mounting foreclosures. For more on Options Trading Pit... and to get your hands on our latest special report, click here.

And as for the housing bulls... well, they'll learn the hard way.

Stay Ahead of the Curve,

Ian L. Cooper
Wealth Daily

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How To Profit as Foreclosures Worsen

Welcome to the Wealth Daily Weekend Edition — our insights from the week in investing and links to our most-read Wealth Daily and sister publication articles.

One day, we're rallying on the idea that Massachusetts could elect a Republican.

The next, we're selling off on the news that Massachusetts elected a Republican, threatening to disrupt any progress made on the health care bill.

And the day after that, Obama comes out with plans for the banking industry — plans that could curb the size of banks and limit some investment strategies.

Needless to say, the market didn't take the news too well...

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Nor does it help that the Senate is proposing to allow the federal government to borrow another $1.9 trillion to pay bills — an increase that would allow our national debt to reach $14.3 trillion. Our great-, great-, great-grandchildren will be thanking us for this bill.

But there was still plenty of good news to go around...

eBay delivered a solid Q4 and guidance report. Starbucks shocked the street with a Q1 profit that nearly quadrupled what the company posted last year. And while most of the financial sector was out with disappointing Q4 2009 reports, Goldman Sachs crushed that number with Q4 earnings of $8.20 a share — $3.00 ahead of $5.20 estimates. It even quieted our favorite analyst, Meredith Whitney, who called for $5.50.

But what do you expect? It's Goldman Sachs.

Here's where the other bull markets were this week:

Believe it or not, there's great news on the foreclosure front... well, great news for smart traders. Foreclosures are only expected to get worse, as unemployment rises and Option ARM resets begin to hit hard. And — get this — in the U.S. alone, we could see another three million foreclosures this year. These come after the 2.8 million in 2009.

Plus, what do you think will happen to housing when the resets happen? What do you think will happen when monthly payments on a $400,000 mortgage jumps from $1,287 to $2,593? We're not trying to scare you... this is reality. And you have to play it smart. We'll be talking about the two stocks you should own on this foreclosure crisis in this Tuesday's Wealth Daily— look for that in your inbox.

Proving that it pays to read the Wealth Daily "Weekend Edition," take a look at Interoil (IOC) — a stock we recommended picking up in the December 12's "Weekend Edition." The last time we played this company, in Options Trading Pit, we walked with 34%, 83%, and 60% gains in less than a month. This time, however, as the stock nearly doubled in months, the bulls aren't done; Papua New Guinea approved the company's project agreement for the construction of a liquefied natural gas plant. Despite the news, the stock is still thinly covered by analysts. But it's showing marked improvements — and is still a steal. Ever since that mention, the stock jumped from $65 to nearly $80. And as for the options, calls across the board are up by triple digits.

That also proves that if you're not yet familiar with options, you need to be — and fast — because opportunities like IOC are becoming increasingly common.

Here in the Baltimore office, we field a lot of questions regarding options... which is why we just began teaching the ins and outs with our newly launched Options Trading Coach... We'll even give you hands-on education, plus 1-2 picks every month. Our last recommendation is already up 14% in less than two days.

Stay Ahead of the Curve,

Ian L. Cooper

Wealth Daily

P.S. In case you missed any of the week's top-read stories from Wealth Daily and our sister publications, you can catch up on them now:

The China Bubble Debate: Stock Valuations and Growth Projections
Wealth Daily contributor Adam Sharp ponders the case for China from both bear and bull perspectives, and explains why the Middle Kingdom has the potential to be a bubble.

Rare Earth Exports: How to Profit as China Clamps Down on Exports
Wealth Daily reports: Countries risk running out of supplies of certain rare earth metals vital to green technologies amid growing fears that China, which has a monopoly on global production, is about to choke off exports of the much-need metals. But let them... Greenland has $273 billion worth — and one company is already benefiting from the find.

Peru Wind Energy: The Profits from this Energy Armada Are Coming Soon
International Editor Sam Hopkins files this report from Peru on the clean energy auctions going on right now in Lima, Peru...and how you can profit from it.

A Look At Energy Management Stocks: How Saving Energy is Returning Billions
Energy & Capital Editor Nick Hodge describes how blue chip companies are adding billions to their bottom line by saving energy... and how investors are profiting, as well.

How to Buy Gold at Just 2% of Today's Spot Price: For the Next 48-72 hours, It's a Reality...
And it's all thanks to one of North America's greatest gold secrets: the Boise Basin. Wealth Daily reports on what ABC News is calling "Idaho's new gold rush."

Energy Efficient Technology: How to Profit from the "Fifth Fuel"
Wealth Daily Editor Nick Hodge discusses energy efficiency, government incentives, and how you can profit.

T. Boone Pickens Touts Natural Gas: Great News for the Largest Gas Find in U.S. History
More than 1,000 feet beneath the surface is the single largest natural gas deposit in U.S. history; so far, it's the fourth largest ever found on earth. One CEO responsible for the find just reported, "We've probably doubled America's reserves with this play." And already, early estimates peg this giant find at 251-trillion cubic feet of recoverable gas. Wealth Daily reveals what you need to know about the deposit with enough gas to support America's gas needs for the next 12 years.

U.S. Natural Gas: The Shale Basins: The New Leader in Natural Gas
Publisher Brian Hicks shares two "unconventional" energy sectors and why they're quickly becoming conventional — and profitable.

How To Profit in 2010

Welcome to the Wealth Daily Weekend Edition — our insights from the week in investing and links to our most-read Wealth Daily and sister publication articles.

Here's what's bugging the market this week... along with some hidden profit opportunities.

Rising unemployment. Falling consumer credit.

Those who can't find work have a tough time getting loans, which leads to plummeting consumer credit... which leads to falling consumption — and consumption is something our economy relies on heavily. It doesn't help matters that new unemployment claims jumped by 11,000 to 444,000.

Retail sales fell unexpectedly in December, underscoring how wobbly the overall economy is, given consumer headwinds.

We are seeing slight improvements, though, in the battered auto industry, which could hint of some better days ahead. The opportunity here: take a long-term long bet on automakers.

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45% and 22% gains on Petrobank

And while we could easily go on, we think you get the point. Isn't it time you made similar gains?

Click here for more.

Over in the housing market, a record 2.8 million households were threatened with foreclosure in 2009... and it's only expected to rise as unemployment rises. The opportunity to profit here? Play the foreclosure crisis and the coming Option ARM resets by shorting banks and home retailer stocks, like Home Depot.

And in the Middle Kingdom, the People's Bank of China is tightening reserve requirements for member banks. That means China's aggressive stimulus could be coming to and end. And if true, it's curtains for the global economic recovery. The profit opportunity: short China stocks— the ones that ran up too high, too fast.

Now for some of the hidden bull markets:

You've heard of the Bakken and the Sanish-Three Forks formations — both resulting in explosive profit opportunities in Pure Asset Trader and the $20 Trillion Report... But now, there's the Cardium, where we're just beginning to unearth explosive potential. Much like the Bakken was in early 2008, the Cardium hasn't hit the mainstream spotlight — yet. But that's about to change, as more companies grab a stake in the formation. Petrobakken, for example, just bought out Berens Energy in the region... and is likely to be a big runner in the region, along with a newly recommended $3 trade out of $20 Trillion Report.

If CIBC Chief Economist Jeff Rubin, who called oil's rise to $100 back in 2007, is right about $90 oil by March... then any company related to those three oil rich regions could explode.

You may also want to check out natural gas. Billionaire T. Boone Pickens is promoting American natural gas and predicting that Congress will approve legislation by Memorial Day to "spur federal investment in shifting heavy-duty vehicles to the fuel."

According to reports, a House bill, authored by U.S. Reps. Dan Boren and John Sullivan, has 127 co-sponsors from both sides of the aisle. That bill would give "federal tax incentives for making and buying natural gas vehicles; tax breaks would also be available for service stations to add natural gas pumps."

But here's a tip to maximizing that gain potential even further: Learn how to trade options. These days it's hard to ignore this trading vehicle. Here in the Baltimore office, we field a lot of questions regarding options... which is why we just began teaching the ins and outs with our newly launched Options Trading Coach... We'll even give you hands-on education with 1-2 picks every month.

Stay Ahead of the Curve,

Ian L. Cooper
Wealth Daily

P.S. In case you missed any of the week's top-read articles from Wealth Daily and our sister publications, you can catch up on them now:

The Green Millionaire Infomercial: The Truth Behind this "Green" Media Scam
Green Chip Stocks' Sam Hopkins reports on this laughable 'green bandwagon' infomercial.

Green Side of the 2010 Detroit Auto Show: Electric Cars Shine at the 2010 Detroit Auto Show
Green Chip's Jeff Siegel discusses electric cars in the spotlight at the 2010 Detroit Auto Show.

The Bakken Error: Being Wrong About the Bakken is Making Us a Fortune
It doesn't happen often... but this time, it feels good to be wrong. For $20 Trillion readers, this mistake has already pulled in gains of 350%! Take a minute to read this special Bakken report from Wealth Daily to find one stock that's just starting to heat up.

Have U.S. Markets Been Rigged?: We'll Let this Video Speak for Itself...
It is interesting to note that some well-known names are now asking the questions that we and some others have been asking for a very long time. WD's Ian Cooper comments on the controversial topic.

Greenland's Gift: A Chunk of Arctic Tundra with a $273 Billion Secret
Wealth Daily readers get an inside look at Greenland's $273 billion secret. Just one week ago, Denmark lost control of this billion dollar secret, giving one company the chance to take over... our new report reveals how you can take advantage of this massive profit opportunity.

A Nuclear Energy Revival: An Easy Path to Nuclear Profits
Energy & Capital Editor Nick Hodge discusses why nuclear energy is poised for a revival... and how you can harness it for profit.

How to Buy Gold at Just 2% of Today's Spot Price: For the Next 48-72 hours, It's a Reality...
And it's all thanks to one of North America's greatest gold secrets: the Boise Basin. Wealth Daily reports on what ABC News is calling "Idaho's new gold rush..."

Peru Economic Boom Time: Peru at a Crossroads Between China and Brazil
Wealth Daily Editor Christian DeHaemer explains Peru's position at a crossroad between China and Brazil and why it is one of the fastest growing countries with falling unemployment.

The Basics of Options Trading: What Every Investor Should Know About Options
Wealth Daily Editor Ian Cooper explains Options Trading Basics — a must-read for beginner options traders.

The Basics of Options Trading

If you want to make money in a market that's made little if no sense over the last two years, I urge you to take this simple step:

Follow the volume spikes in stocks and options.

Case in point: We were simply following the smart money when we bought calls on the Financial Select Sector SPDR (XLF) and the Direxion Financial Bull 3X Shares (FAS) calls — which returned 166% and 125% gains, respectively — a few months ago.

We've seen countless other opportunities, too. Just take a look at the volume spikes in the following plays this past week:

About 40,000 contracts have traded in the UltraShort Real Estate July 2010 8 calls;
About 33,000 contracts have traded in the XLF June 2010 20 calls;
About 27,000 contracts have traded in the Alcoa January 2010 17.50 calls.
And another 20,654 contracts traded in the McMoRan Exploration January 2010 10 calls.

All this leading us to believe somebody knows something that we don't.

Win Big When the Next Domino Tumbles

First there was housing... then the banks. And after that it was the automakers that came crashing down. Next up is a Commercial Real Estate Crash.

And unfortunately - just like the rest of them - the government's last-ditch efforts to prop up this domino are all doomed to fail.

But a 372-year-old investing technique is the answer to it all. And it might not only save your portfolio during this $1 trillion crisis... but also make you a fortune!

To learn more about this moneymaking opportunity click here.

Truth is following volume spikes can provide significant profit opportunities.

Sure, there are lots of ways for detecting shifts: Candlesticks... charting patterns can show "head and shoulder" formations... moving averages... Bollinger Bands... Williams % Range... all of these examples can be used to technically read for pattern shifts.

But if you want a quick read on whether a trend is strong, your best clue is in the volume.

If volume is spiking, someone may be in the know...

Take Forest Laboratories, for example. Every time it touched its upper Bollinger Band, it was also met with heavy put option buying.

Someone was in the know, and we followed — watching the stock dive $10. Technically speaking, the chart told me the story. Volume-wise, the buyers of the underlying stock were tired and ready to drop, which was confirmed by heavier option volume.

So the next time you're tempted to buy options on a stock that has been rising or dropping, be sure to check out the volume. Regard volume spikes as you would the flashing lights of a slot machine; they are a precursor to profit.

How to research or even buy an option...

For months, we've been receiving reader comments and questions regarding options:

"Ian, I've been trying to learn options on my own but not getting anywhere. All the terms, and options chains are confusing. Can you help?"

"Can you explain how LEAPS work again and what I should tell my broker?"

"Why bother trading options? I'm doing fine trading stocks..."

Again, if you want to make serious money, you must know options — and disregard the all-too-common belief that options trading is difficult, risky, speculative, and a complicated way to trade stocks.

It's simply no longer the case.

These days, options trading is quickly becoming the preferred way to make serious gains while limiting risk.

But you can't do it without understanding the ins and outs. If you don't know what you're doing, you will get burned.

And that's where we come in, laying it all out for investors seeking options profits, providing reports on:

All the Basics: The Complete Options 101 Primer
Put and Call Options
Covered Call Options
LEAPS Options
The Straddle and Strangle Strategies
The Dynamic 2-in-1 Strategy

But again, these reports aren't for everyone...

They're for traders who want consistent and hefty gains that can be returned by trading options.

Ours vs. Theirs

Sure, there's no lack of options educational services out there... but every one of them is part of some sort of "package deal" that costs hundreds (if not thousands) of dollars.

These package deals include the DVDs, video, and printed fluff pieces that fail to deliver.

Sure, you'll get the background information on options, trade terminology, and a few basic strategies to build your options IQ... but that's about it.

You'll probably receive a PDF of an options trading course that'll conclude with a further offer: "If you join us right now for just $995, we'll walk you through similar trades!"

This type of package is unfair to those looking for the most basic information. You're left wondering what to do next... and how to start making gains on your own.

And that's exactly why we trump these other options education outfits...

We'll guide you through every step on how to trade options, provide some basic and advanced options strategies, and give you 1-2 test trades every month.

Every week, we'll alert you to new options trade set-ups and new ideas and strategies. (These are some of the same strategies and insights I recommend in my Options Trading Pit portfolio, which has returned 9,101% cumulative returns since January 2007. In fact, I developed Options Trading Coach after many of my readers insisted on such a service.)

We've even set up a message board — checked daily — where you can dialogue with us directly.

So if you're interested in exploring options trading, take a look at what we're doing in my Options Trading Coach service... and if you're not happy with what we're providing, we'll return every penny.

It's that easy.

You'll be shocked by how much you can maximize your gains while tracking options volume.

Stay Ahead of the Curve,

Ian L. Cooper
Your Options Trading Coach

Thank you Arnold Schwarzenegger for making us rich!

Thanks to an executive order from the California Governor, our favorite wind energy stock could now deliver gains of more than 112% in the next 4 months. Click here for more info.

Have U.S. Markets Been Rigged?

We'll let this video speak for itself, but it is interesting to note that some well-known names are now asking the questions that we and some others have been asking for a very long time.

Are the markets of 2009 and this year being rigged?

Charles Biderman, CEO of Trim Tabs Investment Research, believes the Fed and the U.S. government have been behind an illogical stock market rally. "We have no evidence they are, but they could be," Biderman says. But "since the middle of March, the market cap of all U.S. stocks has soared more than $6 trillion serving to soothe investors' frazzled nerves..."

"The U.S. government has spent hundreds of billions of dollars to support the auto industry, the housing market, and the banks and brokers. Why not support the stock market as well? So far as we know, it is not illegal for the Federal Reserve or the U.S. Treasury to buy S&P 500 futures. Moreover, several officials have suggested the government should support stock prices."

Unbelievable...

Airport Scanner Stocks

Welcome to the Wealth Daily Weekend Edition — our insights from the week in investing and links to our most-read Wealth Daily and sister publication articles.

After Monday's triple-digit run on the Dow, it was mixed market mayhem for the remainder of the week...

But if you've got a foot in the sectors we've been touting as of late — lithium, rare earth, and security screener stocks — you're better off than the overall market, which just stumbled upon a poor unemployment read.

U.S. employers cut 85,000 jobs in December 2009, cooling off any hopes that the labor market is recovering, and keeping the unemployment rate at a steady 10%. But that figure would have been higher if more people hadn't left the labor force because they couldn't find jobs.

More than $27,000 on a $500 Investment

Thousands of investors have had the opportunity to do it.

And I've found the stock that could do it for you.

It's a tiny Chinese carmaker that'll be bigger than Toyota by 2025.

Click here to stake your claim now.

That number caps a disastrous year for U.S. workers. Employers cut some 4.2 million jobs in 2009 as the unemployment rate averaged 9.3%. Compare this to the 5.8% average in 2008 and the 4.6% average in 2007... And economists are worried that 2010 won't be better.

Fortunately we've found the bargains, especially in rare earth metals like lithium, along with select screener stocks.

The boom in lithium has only just begun, as investors scramble to take a position. That's because even they know that lithium could soon replace billions of barrels of oil. They also know that demand is expected to continue rising, as the boom is ignited by the fact that electric cars require about 3,000 times the lithium needed for an average cell phone.
Western Lithium, recommended by Brian Hicks in Wealth Daily, has already doubled. And our other currently held lithium gains — 83%, 40% and 16% — is proof that the boom just began. And we're not selling. In fact, Pure Asset Trader is continuing to buy, adding another lithium stock that could double inside a year.

We also recommended keeping an eye on OSI Systems (OSIS) and L-3 (LLL) after the terrorist effort to blow a hole in a plane on Christmas Day. Not only did the two companies get a boost from the Netherlands decision to use body scanners on all flights from Holland to the U.S., the two could get an extra boost from Janet Napolitano, U.S. secretary for Homeland Security, who is deploying 300 additional advanced imaging scanners at U.S. airports, and possibly more. OSIS ran from $27 to more than $30 over the last week. LLL ran about $2 in the beginning of the week. But you could have done even better, had you bought the options... that is, if you're serious about maximizing your gain potential.

You see, every serious investor needs an education in trading options... And maximizing gain potential with options couldn't be easier these days. Yet, not every one should be trading them — not without proper options education. Which is why we're teaching the ins and outs of options with our newly launched Options Trading Coach... We'll even give you hands-on education with 1-2 picks every month. It really doesn't get any easier than this.

That's all for this week... Stay tuned for more shortly.

Stay Ahead of the Curve,

Ian L. Cooper
Wealth Daily

P.S. In case you missed any of the week's top-read articles from Wealth Daily and our sister publications, you can catch up on them now:

The Torches Come Out in Iceland: Protests Break Out in Iceland Over Bank Bailouts
Wealth Daily Analyst Adam Sharp reports as Icelanders protest with torches over a $5b bank bailout proposed by their lawmakers.

Chinese Clean Energy: 2010: The Year of China's Energy Boom
Wealth Daily's Nick Hodge discusses the coming boom in Chinese renewable energy, and how you can position yourself for easy profits.

Bakken Well News: Stocks Exploding on Discovery
The Bakken oil formation — which the USGS just last year estimated to hold 4.35 billion barrels of oil — could turn around a whopping 9 billion big ones, says Wealth Daily... and stocks are already starting to move.

Energy Efficiency Stocks: The Fifth Fuel
Energy & Capital Editor Nick Hodge discusses his energy habits and how they can have implications for mainstream investing.

The Outlook for Geothermal Energy Stocks: Where the Hot Spots Are in Geothermal Energy
International Editor Sam Hopkins takes a look at the geothermal industry in 2010 and what you can expect to see.

Regenerative Medicine Companies: These Medical Changes that are Almost Here
Editor Steve Christ explores regenerative medicine and explains why this radical field is likely the next "big thing" for the medical world and investors alike.

Lithium and Rare Earth Stocks: Rare Earth Metals and Technology to Line Pockets
Wealth Daily Publisher Brian Hicks explains how new technology will continue to drive the lithium and rare earth metals bull market he predicted last year.

Greenland Takes Control: Fortunes Are Already Being Made
Wealth Daily reports: Greenland's $273 billion rare earth resource will turn over to a company that's returned 150% gains to date. But you haven't missed the profit train. In this report, we reveal how you can get in on the outfit that will control these technology metals... before its stock skyrockets again.

Doomed to Repeat the Mistakes of 1937?: A Double-dip Recession is Possible...
Editor Ian Cooper explains why Nobel Prize winning economist Paul Krugman warns Obama and the Fed not to make the same mistakes that were made some 73 years ago, when the U.S. was sure that the worst was really behind it.

Doomed to Repeat the Mistakes of 1937?

In Sunday's New York Times commentary, Nobel Prize winning economist Paul Krugman warns Obama and the Fed not to make the same mistakes that were made some 73 years ago, when the U.S. was sure that the worst was really behind it.

"There will be lots of bullish commentary - and the calls we're already hearing for an end to stimulus, for reversing the steps the government and the Federal Reserve took to prop up the economy, will grow even louder," wrote Krugman. "But if those calls are heeded, we'll be repeating the great mistake of 1937, when the Fed and the Roosevelt administration decided that the Great Depression was over."

Unfortunately, once the monetary policy was tightened, the U.S. economy fell hard, he says.

If stimulus is not increased and the Fed does not continue to intervene (including keeping interest rates at zero), the lifeline for our economy could shut down... and send us plunging into a double-dip recession, say others. Even the Wall Street Journal, which is reporting that the markets could struggle in the New Year unless more stimulus is seen, agrees.

While we agree with those positions, our deficit and rising national debt could be met by a rise in interest rates, sending us into a double dip recession, too.

But that's just our opinion. Here's more of what Krugman had to say.

We'd love to hear what you think, too. You can leave comments below.

That 1937 Feeling
Paul Krugman
New York Times

Here's what's coming in economic news: The next employment report could show the economy adding jobs for the first time in two years. The next G.D.P. report is likely to show solid growth in late 2009. There will be lots of bullish commentary - and the calls we're already hearing for an end to stimulus, for reversing the steps the government and the Federal Reserve took to prop up the economy, will grow even louder.

But if those calls are heeded, we'll be repeating the great mistake of 1937, when the Fed and the Roosevelt administration decided that the Great Depression was over, that it was time for the economy to throw away its crutches. Spending was cut back, monetary policy was tightened - and the economy promptly plunged back into the depths.

This shouldn't be happening. Both Ben Bernanke, the Fed chairman, and Christina Romer, who heads President Obama's Council of Economic Advisers, are scholars of the Great Depression. Ms. Romer has warned explicitly against re-enacting the events of 1937. But those who remember the past sometimes repeat it anyway.

As you read the economic news, it will be important to remember, first of all, that blips - occasional good numbers, signifying nothing - are common even when the economy is, in fact, mired in a prolonged slump. In early 2002, for example, initial reports showed the economy growing at a 5.8 percent annual rate. But the unemployment rate kept rising for another year.

And in early 1996 preliminary reports showed the Japanese economy growing at an annual rate of more than 12 percent, leading to triumphant proclamations that "the economy has finally entered a phase of self-propelled recovery." In fact, Japan was only halfway through its lost decade.

Such blips are often, in part, statistical illusions. But even more important, they're usually caused by an "inventory bounce." When the economy slumps, companies typically find themselves with large stocks of unsold goods. To work off their excess inventories, they slash production; once the excess has been disposed of, they raise production again, which shows up as a burst of growth in G.D.P.

Unfortunately, growth caused by an inventory bounce is a one-shot affair unless underlying sources of demand, such as consumer spending and long-term investment, pick up.

Which brings us to the still grim fundamentals of the economic situation.

During the good years of the last decade, such as they were, growth was driven by a housing boom and a consumer spending surge. Neither is coming back. There can't be a new housing boom while the nation is still strewn with vacant houses and apartments left behind by the previous boom, and consumers - who are $11 trillion poorer than they were before the housing bust - are in no position to return to the buy-now-save-never habits of yore.

What's left? A boom in business investment would be really helpful right now. But it's hard to see where such a boom would come from: industry is awash in excess capacity, and commercial rents are plunging in the face of a huge oversupply of office space.

Can exports come to the rescue? For a while, a falling U.S. trade deficit helped cushion the economic slump. But the deficit is widening again, in part because China and other surplus countries are refusing to let their currencies adjust.

So the odds are that any good economic news you hear in the near future will be a blip, not an indication that we're on our way to sustained recovery. But will policy makers misinterpret the news and repeat the mistakes of 1937? Actually, they already are.

The Obama fiscal stimulus plan is expected to have its peak effect on G.D.P. and jobs around the middle of this year, then start fading out. That's far too early: why withdraw support in the face of continuing mass unemployment? Congress should have enacted a second round of stimulus months ago, when it became clear that the slump was going to be deeper and longer than originally expected.

But nothing was done - and the illusory good numbers we're about to see will probably head off any further possibility of action.

Meanwhile, all the talk at the Fed is about the need for an "exit strategy" from its efforts to support the economy. One of those efforts, purchases of long-term U.S. government debt, has already come to an end. It's widely expected that another, purchases of mortgage-backed securities, will end in a few months. This amounts to a monetary tightening, even if the Fed doesn't raise interest rates directly - and there's a lot of pressure on Mr. Bernanke to do that too.

Will the Fed realize, before it's too late, that the job of fighting the slump isn't finished? Will Congress do the same? If they don't, 2010 will be a year that began in false economic hope and ended in grief.

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The Great Commodities Bull Run of 2010

Welcome to the Wealth Daily Weekend Edition — our insights from the week in investing and links to our most-read Wealth Daily and sister publication articles.

2009 will go down as the year of change, hope, and incredible volatility... as will the first half of 2010.

We went from the brink of depression — with unemployment nearing double digits — to watching the Dow rise from 6,500 above 10,000 just a few months later, on the heels of Fed action.

Beat Big Pharma to the profits on a breakthrough that's bigger than penicillin

Right under the nose of the drug giants, this small American company has developed the genetic key to eradicating the world's deadliest diseases -- influenza, malaria, HIV, and many of the major killer cancers...

Get in on this tiny stock before news of their breakthrough "cell-shock" technology gets out -- and your chance at 1000 times your money is gone forever.

Gold rallied above $1,100... We swore in the first African-American president. We watched the Bernie Madoff scandal unfold. We watched the Fed pump billions into the pipelines, keeping major banks afloat. We watched the FDIC disaster unfold... global upheaval and defaults... the Miracle on the Hudson... the fight over health care reform... and so much more.

But what will 2010 hold for investors?

We'll probably see more hope-fueled rallies in the first half of the year, met with second half downside as an ammo-less Fed and government trying to ward off the coming Option ARM resets, housing glut, higher unemployment, and issues of unsustainable debt.

But don't fear those downside risks. Just keep looking for the bulls.

One of those bull markets can be found in gold. And we're not the only ones that think so. Marc Faber "is buying lots of gold exploration stocks and gold producers because their prices were ridiculously cheap... [he] says gold stocks are the best bet against global meltdown," according to CommodityOnline.

And according to Jim Rogers, "gold will power the great commodities bull run that will last for the next decade. With many people worried about the deficit and paper money, gold will be a great investment and relatively few people are invested in it."

Elsewhere, we're beginning to see signs of explosive action in our featured Pure Asset Trader rare earth trade. Having bought at 59 cents, we're now sitting with 60%+ gains as it attempts to break $1. But this won't be a penny stock for much longer. By January 1, 2010, the company could own 25% of the world's rare earth supply, as Denmark relinquishes its sovereign hold over Greenland's mineral rights.

It's why, according to Wealth Daily publisher Brian Hicks, the "world's leading manufacturers of hybrid cars, wind turbines, batteries, and yes — even the guidance systems to our most sophisticated air and ground defense missiles systems — are watching the events in Greenland unfold with baited breath.

Also, keep an eye on Freddie Mac (FRE) and Fannie Mae (FNM)... Both got quite a nice gift on Christmas Eve (conveniently done so the public wouldn't notice?) in the form of a blank check. That means they now have unlimited government funding guaranteed by you and I, the taxpayers. The Treasury did this to "accommodate any cumulative reduction in net worth over the next three years." It's not as if the government can allow these two to fail... but don't buy just yet. We'll keep an eye on what the CEO incentives will include, and/or if they'll buy any of their own stock.

And finally, watch scanner stocks. The cowards that tried to blow a hole in a plane got the ball rolling on body scanner-related companies. OSI Systems (OSIS) and L-3 (LLL) are climbing after reports surfaced that the Netherlands will begin using body scanners on all flights from Holland to the U.S. in the next three weeks. The Dutch are asking the EU to force all EU airports to have scanners. U.S. officials are calling for increased use of scanners to detect bomb-making components on people's bodies, according to reports. And the U.S. Transportation Security Administration intends to buy 300 more scanners next year.

That's where some of the action can be found in 2010. Stay tuned for more.

Best wishes for happy holidays and a wealthier New Year,

Ian L. Cooper
Wealth Daily

P.S. In case you missed any of the week's top-read articles from Wealth Daily and our sister publications, I've included them for you here:

Energy Trading Tips: Where to Invest in 2010
Wealth Daily takes a look back at 2009 energy headlines and reveals what's in store for smart investors in 2010.

Warren Buffett: The Investor of the Year: The Natural Swings for the Fences in 2009
Wealth Daily Editor Steve Christ names Warren Buffett as his "Investor of the Year" and lists reasons Buffett deserves to be recognized.

We Were Incredibly Wrong: This is Painful to Admit...
After months of research, interviews, site visits, number crunching, and answering to critics, Wealth Daily analysts have come to terms with one thing about the Bakken oil formation... that we totally missed the mark.

The Top Sixteen Stories of the Year: So Long, Farewell, Auf Weidersehen, Good-Bye
Editor Steve Christ's parting shot to one of the most difficult years I have ever seen for the markets. In fact, it makes my head ache just thinking about it...

Green Chip Stocks: Green Chip Stocks Year-In-Review 2009
Green Chip's Jeff Siegel provides a Green Chip Stocks Year-In-Review for 2009.

Regenerative Medicine: These Medical Changes that are Quickly Approaching
Wealth Daily's Steve Christ explores regenerative medicine and explains why this radical field is likely the next "big thing" for the medical world and investors alike.

Bakken Formation vs. the Green River Formation: Don't Confuse these Two Oil Shale Plays
Energy and Capital Editor Keith Kohl sets the record straight with these two oil shale plays: the Bakken Formation and the Green River Formation.

Kick off 2010 with Profits: We're Giving Away $2.4 million to Help
Start the New Year off right with the group that called the first oil price surge as far back as 2004, when other "experts" swore that it would drop back to $20. Wealth Daily's latest report.

Villain of the Year: A Well-Deserved Award
Weeks after Time named 'Helicopter' Ben Bernanke "Person of the Year," the National Inflation Association named him "Villain of the Year" for 2009.

Energy Trading Tips

It's been one heck of a volatile run for markets that have made little — if no — sense since March 2009.

But with the dollar under heavy pressure for most of the year, it was a great year to be an energy trader... especially for our readers.

You see, no one thought the stock market could get as bad as it did in the early days of 2009. We were on the brink of a modern day Depression, with unemployment nearing double digits. It wasn't until the Fed lowered rates to zero — flooding the economy with dollars, weakening the dollar, super-charging commodity trader portfolios — that the Dow flew, helping readers like Paul J. become richer...

Here's Paul's email to me from just last week:

Just wanted to let you know how I have been doing with Pure Asset Trader. I joined Feb 2008 and since then... my investment of $11,000 is now worth $25,531. That's over 130% in what has been a very crazy period! Thank you for a great service.

That's what you'd expect from a portfolio that features a full 39 winners and just 2 losers, which you can take a look at here...

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Now if you're wondering, the gains my readers have achieved have come from exploiting headlines like these:

Oil prices doubled from where they began 2009... skyrocketing off $30 lows to $80
Refinery woes: Valero shut down Delaware City, Sunoco shut down Eagle Point...
European Union hits the US with duties on sales of biodiesel in Europe
Exxon buys XTO for $41 billion, signaling that the future for shale gas could be explosive
Natural gas is running to $6 as we speak
China has been one of the biggest oil drivers of the year... and probably for the next 10 years. They were making deals to develop Iraq oil fields, signed contracts with Hugo Chavez, and got into a bidding war with ExxonMobil in Ghana.
And the IEA put a date on peak oil production. "The chief economist of the International Energy Agency (IEA), believes that if no big new discoveries are made, "the output of conventional oil will peak in 2020 if oil demand grows on a business-as-usual basis." Coming from the band of geologists and former oil-industry hands who believe that the world is facing an imminent shortage of oil, this would be unremarkable. But coming from the IEA, the source of closely watched annual predictions about world energy markets, it is a new and striking claim."

Yep, it's been a heck of a ride for energy in 2009... but what can we expect in 2010?

To be honest, if we see real signs of economy recovery, 2010 could be an explosive year for energy... and even metals.

With metals, I'm advising my readers to diversify with rare earth, lithium, and vanadium.

Smart lithium traders know that lithium could soon replace billions of barrels of oil — or trillions of dollars in black gold revenue. They also know that demand is expected to continue rising, as the lithium boom takes its cue from the demand for it in the electric car market...

We're talking about exposure to a lithium battery market that's expected to hit $15 billion by 2010... and quite possibly $30 billion within a few short years. Even Warren Buffett is well aware of this, recently stunning the market when he announced a $250 million investment in a Chinese electric car company.

Others jumping on the lithium battery market bandwagon include:

Mercedes - will launch their hybrid sedan in early 2010
Tesla Motors - has already delivered its Roadster
Nissan - will produce 150,000 electric cars
Ford - has plans to manufacture an electric Focus by 2011
General Motors - is betting on the success of the Chevy Volt in 2010

Here's what Wealth Daily Publisher Brian Hicks has to say...

If you're skeptical or concerned that fuel efficiency alone is not enough to entice Americans to buy electric cars, consider the Silicon Valley company Tesla Motors. While their roadster is the first production automobile to use lithium-ion battery cells and travel more than 200 miles per charge, it is also capable of going from 0-60mph in less than four seconds.

Not only will the Roadster leave most sports cars in the dust; the car recently set a distance record in April 2009 when it completed the 241-mile Rallye Monte Carlo d'Energies Alternatives with 36 miles left on the charge.

At just over $100,000, the Roadster is probably too pricey for the average consumer... but Tesla has taken more than 1,000 reservations for the car and expects to begin production of an all-electric and more affordable sedan starting in late 2011. But just remember, the Tesla — as well as every other electric car — needs lithium. And demand for lithium is skyrocketing... and will continue to skyrocket.

Even vanadium could make you a fortune over the next few years.

Future growth for this element already looks very strong in the steel industry. In addition to the trillions in global stimulus spending, CIBC World Markets estimates that global infrastructure spending will hit $35 trillion over the next 20 years.

But growth in energy storage will be a big boon, too. Subaru recently revealed its G4E car, powered by a high-capacity vanadium-lithium battery. That battery alone will be capable of storing two or three times more energy than standard batteries.

Rare Earth and Greenland

We're even looking at a rare earth company that could soon own 25% of the world's rare earth supply. On January 1, 2010, Denmark will relinquish its sovereign hold over Greenland's mineral rights... turning the country's $273 billion rare earth resource into private property.

"Which is why the world's leading manufacturers of hybrid cars, wind turbines, batteries, and yes — even the guidance systems to our most sophisticated air and ground defense missiles systems — are watching the events in Greenland unfold with bated breath," says Brian Hicks.

"To companies like Toyota and Honda that have virtually staked their futures on the rapidly expanding hybrid/plug-in car market, and to our own defense industry, which cannot perform even the simplest task without highly-involved electronic assistance, this news could not have come at a better time."

So it'd make no sense to miss out on the one 80-cent stock that could run by the 1^st of the year.

As for oil and natural gas...

Continue buying oil (possibly USO, if you're interested), and natural gas stocks (as natural gas makes its way back to $6), as oil makes a run on a weakening dollar.

What's more, keep following our research in the Bakken oil and Sanish-Three Forks region, as we have in Pure Asset Trader.

My team and I intend to capitalize on every step of this domestic oil boom.

According to OPEC, global oil demand will grow by 700,000 barrels a day next year, thanks to China and India. Goldman Sachs maintained its $85 a barrel forecast for year end and $95 by next year. And the IEA is reporting that global oil consumption will average more than 86 million bpd in 2010.

It's no secret that oil rigs are successfully producing oil there, thanks to technological advancements. But now geologists, alongside state and industry officials, have a hunch there's another large crude oil-holding formation in the state. It's called Sanish-Three Forks, and it could be as big — if not more resourceful — than the Bakken.

Lynn Helms, Director of the State Department of Mineral Resources, thinks it's "good or better" than what's available from Bakken... and it's supposedly so massive that companies are pulling up as much as 2,100 barrels a day.

And from what we're hearing, there's significant promise for Three Forks, given its substantially higher number of hydrocarbons compared to the Bakken formation — another reason geologists think we're dealing with a separate oil formation all its own.

Look, it comes down to this: if the Three Forks formation is determined to be a unique oil-producing formation, it could easily add billions of barrels of oil to North Dakota's oil reserves... and add some nice green to your portfolio.

We also direct your attention to our other energy experts, Keith Kohl and Chris Nelder, for more in-depth analysis of what lies ahead for commodities.

Looking forward to an even more profitable 2010 with Pure Asset Trader,

Ian L. Cooper
Wealth Daily

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Villain of the Year

I couldn't have said this better myself. It's a great read.

Weeks after Time named "Helicopter" Ben Bernanke Person of the Year, the National Inflation Association named him the Villain of the Year 2009.

Bravo, NIA.

Here's more from the National Inflation Association:

The National Inflation Association today named Federal Reserve Chairman Ben Bernanke 'Villain of the Year 2009'. Although the mainstream media is widely praising Bernanke for preventing the next Great Depression, all Bernanke has done is create unprecedented amounts of inflation in unprecedented ways. When it costs $20 for a gallon of milk in a few years, Americans will have nobody to thank more than Bernanke.

While Bernanke believes the artificial excesses of the past decade to be normality, NIA believes normality would be going through a much needed recession in order to correct the imbalances that Bernanke made worse in 2009. The U.S. economy is riding high on its last dose of stimulus before the entire financial system overdoses and collapses. Bernanke has pushed the inevitable recession down the road while setting up the upcoming currency crisis.

The Great Depression of the 1930s came as a direct result of the Federal Reserve's creation in 1913 and their rapid increase in the money supply during the 1920s that led to an unsustainable credit-driven boom known as the "roaring twenties". This artificial boom needed to be corrected with a recession, but by the government interfering in the free-market, they increased the duration of the recession and turned it into the Great Depression.

Bernanke believes the government didn't do enough during the Great Depression, when in fact it was the Federal Reserve that caused it and the government's interference that made it worse. Bernanke was determined in 2009 to prevent the next Great Depression and although he has temporarily done so, he has accomplished this at the expense of a Hyperinflationary Great Depression next decade.

NIA finds it an insult to the world that Time Magazine today named Bernanke 'Person of the Year'. As further insult, they named "The Chinese Worker" runner-up. NIA believes "The Chinese Worker" should've won 'Person of the Year', because it is their hard work and sweat that has allowed Americans to live beyond their means for so long. Americans have taken their standard of living for granted, not realizing their non-productive jobs are a sham and their wealth is a fantasy, created by Bernanke's ability to print money as a result of the U.S. dollar being the world's reserve currency.

As shown in our documentaries 'Hyperinflation Nation' and 'The Dollar Bubble', the dollar's days as the world's reserve currency are coming to an end. We are now at a point where the U.S. national debt is increasing exponentially. It took over 200 years for the U.S. national debt to reach $1 trillion, but then took less than 10 years to grow by the next $1 trillion. In fiscal year 2009, our national debt grew by $1 trillion in just the first nine months of the year. Congress is now looking to increase the debt ceiling by nearly $2 trillion going into 2010.

Time Magazine fails to understand that the U.S. is no longer the world's most important economy. The people of Zimbabwe are perfectly capable of consuming goods just as well as Americans. Bernanke needs to take a vacation in Zimbabwe to see where the monetary policies he is practicing led them.

Bernanke's only tool to suck back in the monetary inflation he created in 2009 is to substantially increase interest rates, not just to 1% or 2%, but to 10% or more. Higher interest rates will mean not only a sharp contraction in GDP, but higher interest payments on our national debt. Therefore, we will be forced to pay higher interest payments on our debt at the same time as tax receipts shrink from our economy contracting. To make matters worse, the imminent surge in retiring babyboomers will mean even less tax revenues and a huge increase in government entitlement spending, at the same time as Obama is rapidly expanding the size of government.

We are two weeks away from the end of America's last ever decade of prosperity. The U.S. would've survived the depression Bernanke temporarily prevented, but it won't be able to survive the emerging hyperinflation catastrophe that Bernanke is creating. It is up to you to help your friends and family prepare for hyperinflation by telling them about NIA and having them become a member for free.

Wealth Daily's 2010 Stock Market Forecast

Welcome to the Wealth Daily Weekend Edition...

This year will go down as the year of firsts.

No one thought the stock market could get as bad as it did in the early days of 2009. We were on the brink of a modern-day depression, with unemployment nearing double digits. It wasn't until the Fed lowered rates to zero — flooding the economy with dollars, weakening the dollar, super-charging commodity trader portfolios — that the Dow flew...

What happened after the brink was nothing short of amazing.

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The Dow soared off 6,500 lows to more than 10,500 just months later.

Yet, while not everything was as rosy as we were told, the market didn't care, opting to shrug off any and all negativity. It was nothing short of amazing to watch.

Yep, 2009 — "the year of firsts" — has seen its share of bullishness with shades of bear.

For the first time in history, gold rallied above $1,100 an ounce. And, for the first time in our nation's history, we swore in an African-American president.

We watched the Bernie Madoff scandal unfold, and then hundreds of people lost thousands of dollars as a result. We watched the Fed pump billions into the pipelines, keeping major banks afloat, while others were closed. We watched the FDIC disaster unfold... global upheaval and defaults... the Miracle on the Hudson... the fight over health care reform... the death of Michael Jackson... and so much more.

But as we say goodbye to 2009, what lies ahead for investors like you and me?

Let's hear it from my fellow analysts and editors here at Angel Publishing:

Steve Christ, founder and editor of The Wealth Advisory, for one, believes: "The wave of liquidity that has floated the markets off the bottom will continue into the first half of the year. That's why I think we can still reach new 52 week highs on the S&P. The problems begin in the second half when those same policies start to tighten. At that point the market mood will likely change."

As for myself, managing editor for Pure Asset Trader (39 for 41 since February 2009) and Options Trading Pit — while I'm bullish on the first few months of 2010, I have my doubts on the stability of our current rally. I'm calling for further downside, as Option ARM resets are met with higher unemployment, further housing glut on the market, and the death of the consumer. That's not to say there aren't hidden bull markets out there. There are, and we'll find them, as we have in these pages of Wealth Daily.

Global investor and managing editor of soon-to-be-launched Crisis & Opportunity, Christian DeHaemer sees opportunities outside of the United States, too. "Mongolia is the best positioned, most undervalued country to take advantage of the weakness in the U.S. dollar and the continued power of the Chinese economy," he says. "There are a number of new deals in coal, gold, copper, uranium, and rare earth minerals."

Says Keith Kohl, editor of The $20 Trillion Report: "For the first time in 40 years, the U.S. has managed to increase its oil production, yet there are only a few areas this growth actually happening. And as we move closer to an economic recovery in 2010, not only have oil prices found a new floor at $60 per barrel, but I think we could easily see oil break into triple-digits. That's why I believe the next wave of investments will come from the trillions of dollars that will be spent developing these new oil plays."

And if Keith is right, which I think he is, triple digit oil prices will lead to further calls for domestic drilling, especially in the Bakken region, where Pure Asset Trader and The $20 Trillion Report have profited heavily.

As for the alternative energy angle, Nick Hodge, editor of Alternative Energy Speculator, thinks it's best to bet "on the smart grid — and all it encompasses — which will be a sure bet in 2010. Energy-producing technologies like wind and solar have come-of-age in a big way, but lack the necessary infrastructure to make them a real game-changer. Because it reduces demand through efficiency and increases supply through transmission and smart devices — while requiring less capital — billions of dollars will be changing hands as electric infrastructure undergoes a major upgrade. As that happens, I'll be picking-off winner after winner for my readers."

As for Jeff Siegel, founder of Green Chip Stocks, "Despite continued market uncertainty in 2010, the energy crisis that is upon us will continue to breed new opportunities in renewable energy..."

Jeff feels the big winners will be Chinese solar manufacturers with close relationships to the Chinese government and U.S. manufacturing... Domestic geothermal companies with operational power plants and direct ties to DOE loan programs... Smart grid developers that have built strong relationships with the utilities over the past couple of years... High-performance battery manufacturers supplying batteries for electric cars and utility-scale generation projects... Chinese wind turbine manufacturers with strong U.S. presence... And domestic wind farm developers sending power to the California grid.

"In fact, there's one wind farm developer in particular that I believe will really start to take off on January 1 — when California's new renewable energy standard goes into effect," says Jeff. "The company's next project has already been valued at more than a half billion dollars, and its current operational project is generating revenue, and operates without a single penny of project debt!"

Green Chip International's Sam Hopkins says, "In 2010, one of two things will happen on the global clean energy scene: one, the competitive environment will heat up as hundreds of new companies push homegrown green power technology; or two, current major players will hang onto market share and ramp up their own R&D. In either case, Green Chip International readers will have a bead on where in the world the best renewable fuel and cleantech investments can be found."

And Chris Nelder of Energy & Capital says "Agricultural commodities will be hot. Climate change is putting millions at risk of starvation in East Africa and disrupting food production in much of the rest of the world, but God isn't making any more farmland. Gold will continue to be strong as the world tries to print its way out of depression. Energy will continue to outperform. Coal, natural gas, uranium, solar, wind, and probably next-generation biofuels will all be buys for 2010."

Plenty of differing opinions. But 2010 should be one heck of a year to be a trader. That's a promise — and we're more than ready to make some serious money.

I, for one, see a 2010 bull market in potash. Stay tuned for more in Options Trading Pit.

Best wishes for happy holidays and a wealthier New Year,

Ian L. Cooper
Wealth Daily

P.S. In case you missed any of the week's top-read articles from Wealth Daily and our sister publications, I've included them for you here.

We Were 100% Wrong on Bakken: We Admit It...
After 28 straight months of research, interviews, site visits, number crunching — and answering to critics — Wealth Daily analysts have come to terms with one thing about the Bakken oil formation. And that is... we missed the mark.

Regenerative Medicine Stocks: The Next Big Thing is Closer Than You Think
Wealth Daily Editor Steve Christ explores regenerative medicine and explains why this radical field is likely the next "big thing" for the medical world and investors alike.

A Modern-day Dr. Frankenstein: Medical Changes are Coming Fast
Wealth Daily reports: Not only is this company working on the cure to one of the deadliest diseases know to man, it's also following an enormously profitable trend in the biotech sector. Wealth Daily reveals this company in this new report.

Crisis Investing: The Only Stock Investing System That Works Every Time
Editor Christian DeHaemer explains why crisis investing is the only sure way to get rich in the stock market.

This Crash is Far From Over: Do this One Thing and You'll be Fine
Sure, construction of new homes, helped by good weather, rebounded in November. And sure, the gain is a hopeful sign of a housing recovery. And yeah, sales have surged in recent months, as home buyers scrambled to take advantage of the first time home buyer tax credit. But Wealth Daily reveals why the crash is far from over...

Neighborhood Electric Vehicles (NEVs): Calling Out Green Fear-mongering
Energy & Capital Editor Nick Hodge takes a look at neighborhood electric vehicles (NEVs) through the eyes of two very different media outlets.

Tom Vilsack Biofuel: Clarification on the Tom Vilsack Biofuel Position
Green Chip Publisher Jeff Siegel reports: U.S. Agriculture Secretary Tom Vilsack recently told reporters that we should caution against blaming biofuels for higher food prices, stating that the food vs. fuel debate is based on the assumption that where we are today remains static relative to production.

Greenland Takes Control of Mineral Rights in 15 Days: Fortunes Will Be Made
On January 1, 2010 — for the first time in history — Greenland's $273 billion rare earth resource will turn over to a single company. We reveal how you can get in on the outfit that will control these technology metals... before its stock skyrockets and you miss the profit train.

This Crash is Far From Over...

We're not overly pessimistic on the economy, but it's hard to ignore truths when every one else falsely cheers a housing recovery.

So do yourself a favor... when housing bulls, for example, tell you all is fine, ignore them.

Sure, construction of new homes, helped by good weather, rebounded in November. And sure, the gain is a hopeful sign of a housing recovery. And yea, sales have surged in recent months, as homebuyers scrambled to take advantage of the first time home buyer tax credit.

But there's only one problem with the bullishness. It's overdone. There is no recovery... the crash is far from over. Even Moody's doesn't see any end to the housing meltdown, believing that home prices will soon start moving back down because of coming foreclosures.

But the most devastating of all could be the coming Option ARM resets of 2010 and beyond. It could easily lead to higher unemployment, housing glut, decreased home values, and the death of the cash-strapped consumer. And if you want to make money on this, you simply short housing, housing-related retailers, and the financial community.

What do you think will happen to housing when the resets happen? What do you think will happen when monthly payments on a $400,000 mortgage jumps from $1,287 to $2,593?

We're not trying to scare you... this is reality. And you have to play it smart.

The Year of Option ARM Resets. . . and Why There's No Foreseeable Bottom.

Just as 2007 and 2008 were the years of subprime woes, this one will go down as the year of Option ARM resets (or adjustable rate mortgage resets). With billions in Option ARM resets in 2009 and 2010, this crisis is about to unleash a fury no one's prepared for.

It won't be as bad as subprime, of course. It'll be worse.

And if that weren't bad enough, there was another feature called "negative amortization," which meant you weren't paying back any principal.

As for speculators, they may use negative amortization loans if they believe prices will increase at a fast pace. But with the opposite happening, they're out of luck.

And the banks will be left holding the bag.

So do yourself a favor. Ignore the housing bulls... they want to learn the hard way.

How Flexible Spending Accounts Push Drugstore.com Stock

It's that time of year again: the "use it or lose it" countdown for the millions of people who have flexible spending accounts.

Beware: any funds left in that account on December 31 will disappear faster than booze at an office holiday party...

That's because flexible spending accounts — which allow taxpayers to use pretax dollars for out-of-pocket medical expenses — have a "use it or lose it" provision that requires them to be used up by the end of the year.

It's the law.

So, if the lady in front of you is buying a palette of Tylenol, it may not be because she's trying to recover from that same holiday party I mentioned. She's probably just trying to use up her flexible account dollars.

The Best Lithium Play on the Market

A tiny Chinese lithium play is about to corner the market.

Even Warren Buffett is excited about it. He's already bought in.

In all reality, this could be the best stock to own for the next five years.

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The Important Rules Behind Flexible Spending Accounts

While flexible spending account holders can spend the funds on medical expenses not covered by insurance, like laser eye surgery, dental expenses, psychiatric care, vaccinations, immunizations and dermatological services, etc., they can also spend them on certain over-the-counter-medications, thanks to a September 2003 announcement from the Treasury Department and the IRS:

Today, the Treasury Department and the IRS announced over-the-counter drugs can be paid for with pre-tax dollars through health care flexible spending accounts. Treasury and IRS issued guidance clarifying that reimbursements for nonprescription drugs by an employer health plan are excluded from income. Thus, reimbursements by health flexible spending arrangements (FSAs) and other employer health plans for the cost of over-the-counter drugs available without prescription are not subject to tax if properly substantiated by the employee.

FSA dollars can also be used for birth control, flu shots, programs for quitting smoking, and hearing exams, just to name a few. But you should double-check with your employer regarding what your FSA dollars cover.

If you don't use the money in your account by December 31, you lose it. Be sure to verify this with your employer, as well, as some have extended this date to March 15.

Flexible Spending Account Benefits Drugstore.com

According to Forbes.com, Drugstore.com "called upon some of the largest U.S. benefits administrators to create a list of items that are eligible for reimbursement under most plans." As it says on its site, "Drugstore.com offers some 2,000 OTC items deemed likely to be eligible at its ‘FSA Store.' Shoppers can print a detailed receipt to submit to their FSA administrator for reimbursement, and all purchases made throughout the year on the site can be consolidated in a single FSA receipt."

As a result, the stock caught some attention:

From December 2001 to January 2002, DSCM ran from a low of about 90 cents to about $4.50.
From December 2002 to January 2003, it ran from about $1.75 to about $2.75.
From December 2003 to January 2004, it ran from about $5.50 to about $8.
From December 2004 to January 2005, it ran from about $3 to about $3.75.
From December 2005 to January 2006, it ran from about $2.50 to about $3.30.
From December 2006 to January 2007, it ran from about $3.25 to about $3.90.
In December 2007, it ran from about $3.10 to $3.50.
In December 2008, it ran from about 80 cents to about $1.50.

And if you've followed this yearly year-end advice, you're already up 27% — Drugstore.com has run from $2.75 to $3.50 from November's end until today, as I write this.

Do this: Every November, go long shares of Drugstore.com... and hold until the end of December. Then, turn around and go short as the stock historically pulls back.

As we head into 2010, I would be remiss if I didn't remind readers about the profit opportunities available through Options Trading Pit. My subscribers realized a total gain of 1790% during just the first four months of 2009 with the know-how from Options Trading Pit. Join us for even bigger gains in 2010, as we play the short side of housing, commercial real estate, and the disaster unfolding with student loans. For more on Options Trading Pit, click here.

Stay Ahead of the Curve,

Ian L. Cooper
Wealth Daily

An Investment... Better Than Gold?

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Is the Recession Over or Not?

According to two White House economic advisors, yes and no.

According to Larry Summers, "everybody agrees the recession is over... These things happen in stages. First, GDP goes up. That has happened. Then, hours that are worked by workers who already have jobs go up. That's starting to happen. Then employment goes up. We got very close to that this year, this month, with only 11,000 jobs lost. And then unemployment starts to come down. So these problems weren't made in a month or a year, and they are going to take a substantial time to solve."

"But what we can take satisfaction from is that we've walked back from the brink. And you know, forget what we say. Most professional forecasters are now looking for a return to job growth by spring," he said.

But according to Christina Romer, "of course [we're} not [out of recession]. We have — you know, for — for the people on Main Street and throughout this country, they are still suffering. The unemployment rate is still 10 percent."

Sadly, not only does the clash speak to the differing economic opinions in the Obama circle, but to the contrasting signals of the economy. And we're all left to figure out what the heck i's going on.. because people in the White House certainly can't.

So, if you've ever wondered why the market is insane these days, and for the past few months, it's because no one has any idea of what's happening with this economy. While I'd like to agree with Summers, and hope that he's right, you can't ignore the problems underlying our economic system.

The only known known is that there's an incredible disconnect between these two advisors.

Global Debt Crisis

Welcome to the Wealth Daily Weekend Edition — our insights from the week in investing and links to our most-read Wealth Daily and sister publication articles.

Christian DeHaemer is right. The credit rating agencies really do suck.

They couldn't see one of the biggest economic disasters (since the Great Depression) unfolding in front of them... the same fools that rated junk as triple-A status... and the same fools that are just now catching on to the problems unfolding in Greece.

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Fitch is just now downgrading Greece's sovereign rating from A- to BBB+ after countless years of Greece's mounting debt, lax policies, and alleged tax evasion that had their economy shoulder-deep in red. National debt here is also expected to rise to 125% of GDP by 2010...

And the rating agencies are just now worried that other government debts are unsustainable — another notion that most consider old hat.

Not even a month ago, the International Monetary Fund projected "that the average debt to gross domestic product ratio of the 10 advanced countries... would mushroom to 118% by 2014." But the agencies are just now getting worried?

Who needs 'em?

Now the [better] news from this week:

According to Green Chip Stocks, General Electric just landed a $1.4 billion contract from power producer Caithness Energy to supply turbines for what could be the biggest wind farm ever... and supply about a tenth of Southern California Edison's renewable energy. When completed, the Shepherd's Flat project will supply energy to the U.S. west coast grid, provide enough energy to power 235,000 California homes, and have the capacity to generate two billion kilowatts a year. Now that's cool. Stay tuned for more on this developing story from Green Chip Stocks.

There was even some good news for housing... Despite the coming mountain of Option ARM resets, the housing sector can use all the good news it can get. In November 2009, "only" 307,000 Americans received foreclosure notices — that's down 8% month-over-month. But it's still up 18% year-over-year. While somewhat encouraging, U.S. foreclosure filing will hit a record high.

As for wild options activity, keep an eye on Interoil (IOC). The last time we played this company, we walked with 34%, 83%, and 60% gains in less than a month. This time, however, as the stock nearly doubled in months... the bulls aren't done, as Papua New Guinea approved the company's project agreement for the construction of a liquefied natural gas plant. Yet, despite the news, the stock is still thinly covered by analysts. But it's showing marked improvements — and is still a steal. The bulls realize this and are buying up the January 60 calls.
Turns out Bank of America call option buyers of the last few weeks didn't get the positive outcome they were hoping for. Good thing we sat that round out! Despite news that the bank repaid the U.S. Treasury $45 billion as part of the Troubled Asset Relief Program, the stock has barely moved on the news. Repayment followed the completion of a securities offering where the company sold 1.286 billion common shares, generating $19.2 billion.

Even Citigroup has barely moved, despite bullish activity in call options. Not to be outdone by Bank of America, the company said it was preparing to raise up to $20 billion in common stock to pay back TARP... which could dilute shares by up to 20%. The company is said to be looking for terms similar to what Bank of America got. Stay away. Shorts are coming back to financials.

Speaking of options, trading them was once considered a risky, speculative, and complicated way to trade stocks. But that's no longer the case. Maximizing gain potential couldn't be easier these days. Yet, not every one should be trading them — that is, not without proper options education. Which is why we're teaching the ins and outs of options with our soon-to-be-launched Options Trading Coach (a $299 value). It's being offered free to Options Trading Pit readers. Options trading just got easier.

Stay Ahead of the Curve,

Ian L. Cooper
Wealth Daily

P.S. In case you missed any of the week's top-read articles from Wealth Daily and our sister publications, I've included them for you here.

2010 Stock Market Outlook: Great Start and a Troubled Finish
Wealth Daily Editor Steve Christ offers his 2010 stock market outlook and details why the first half will be better than the second.

Why I'm Buying Gold Dips: The Printing Presses Are Just Getting Warmed Up
Wealth Daily Analyst Adam Sharp explains why the head-fake recovery may give us a rare opportunity to buy gold before it takes off again.

America's Unsustainable Debt: 3 Charts You Must See Now
Editor Christian DeHaemer discusses why U.S. debt is unsustainable; rating agencies are worthless; and the reasons to buy this gold dip below $1,100.

Record Volumes in Gold: What's Next for Gold
Wealth Daily reports: Gold prices are up over 35% year to date but sold off in the last week, leaving many to wonder if the bubble has burst. Others, however, say the upside momentum isn't over just yet.

The Smart Grid's Coming Electric Economy: The Utilities' View of the Smart Grid
Energy & Capital Editor Nick Hodge discusses utilities and the smart grid, and how the relationship between the two can make you money.

The Top Biotech Stocks: The Race for the Cure
Not only is this company working on the cure to one of the deadliest diseases know to man... it's also following an enormously profitable trend in the biotech sector. Wealth Daily reveals this company in a new report.

The Comcast and NBC Universal Mega-Deal

Welcome to the Wealth Daily Weekend Edition — our insights from the week in investing and links to our most-read Wealth Daily and sister publication articles.

Another dizzying week of ups and downs was capped with good news yesterday...

The unemployment rate unexpectedly fell to 10% in November — an encouraging sign that the labor market is near its bottom. The economy lost 11,000 jobs last month, bettering expectations for an expected 130,000 loss.

But there's still a fear of higher unemployment as the economy struggles to find jobs for the 15 million people still looking for work.

In other news this week:

In a much-anticipated deal, Comcast and General Electric agreed to a venture that'd give Comcast control of NBC Universal. The deal — which values NBC Universal at $30 billion — will make Comcast a major force to be reckoned with in television and movie production and the Internet.

Comcast will reportedly put up $6.5 billion in cash and $7.25 billion in assets to buy a 51% stake of NBC Universal from GE, giving Comcast control of the NBC network Telemundo, dozens of cable channels like USA and The Weather Channel, sports networks, and Universal Networks, to name a few. It just has to pass regulatory hurdles before all is said and done.

Jay Leno may want to rethink his cable jokes.

Gold was exploding with upward momentum until Friday's jobs number. But you may want to use this as a buying opportunity, as worldwide governments devalue currency, and pump their economies full of "out of thin air" liquidity. If you need further evidence that gold will rise, take a look at what China just announced or look at where our pummeled dollar is heading.

On Monday, China Youth Daily reported that a task force was set up to look at the issue of gold reserves. "We suggested that China's gold reserves should reach 6,000 tons in the next 3-5 years and perhaps 10,000 tons in 8-10 years," the report quoted Ji Xiaonan, chairman of the supervisory board at the State-Owned Supervision and Administration Commission.

Bank of America (BAC) call options were under heavy demand as the bank announced it would repay taxpayers the $45 billion TARP investment. The bank is doing this ahead of schedule and is being viewed as a positive by the market. The move will also free the bank from government involvement in bonuses and hopefully lead to a new CEO. But don't be so quick to buy BAC. Here's why.

Electronic Arts (ERTS) drew some bearish action in puts. News is that Wal-Mart is cutting videogame prices, fueling the action. Look for further potential downside. Gamestop (GME) saw bearish action in the puts, as well, as investors questioned whether the Wal-Mart move would hurt Gamestop sales.

Speaking of options, be on the look out for Options Trading Coach. Expected to launch within weeks, we'll show you how options can lead to explosive wealth in any market. Stay tuned.

Stay Ahead of the Curve,

Ian L. Cooper
Wealth Daily

P.S. In case you missed any of the week's top-read articles from Wealth Daily and our sister publications, I've included them for you here.

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What Dubai Means for U.S. Commercial Real Estate: "Delay and Pray" Can't Continue For Long...
Wealth Daily's Ian Cooper takes a look at the potential Dubai impact on the U.S. commercial real estate market.

Top Bakken Stocks: Now Has Never Been An Easier Time to Profit
Wealth Daily reports: It's no secret that the Bakken has been good to us. For the past several weeks, news has been pouring out of the area, as North Dakota has officially overtaken Louisiana's spot as the fourth largest oil producer in the U.S. and the Bakken formation has been getting a lot more attention.

Climate Change Opportunities: The Truth About Climate Change Will Make You Rich
Green Chip Editor Jeff Siegel shares his thoughts on climate change investment opportunities...

Data Center Power Consumption: What's Powering the Internet?
Energy & Capital Editor Nick Hodge discusses data center power consumption... and how reducing it can make investors a fortune.

Top Biotech Stocks: The Race for the Cure
Not only is this company working on the cure to one of the deadliest diseases know to man, it's also following an enormously profitable trend in the biotech sector. Wealth Daily reveals this company in a new report.

Paulson Picks Citigroup Stock (NYSE:C): Buy, Sell or Hold: Citigroup Stock Rises From the Ashes
Wealth Daily Editor Steve Christ takes a fresh look at Citigroup Stock. Is Citi a buy, sell, or hold? Steve provides the answers.

What Dubai Means for U.S. Commercial Real Estate

You've heard about the Dubai meltdown. But what the mainstream press isn't telling you could have serious implications for the U.S. commercial real estate market.

It was only a few years ago that Dubai floated the Bubble City idea — built on dreams, hysterical public relations campaigns, and billions in debt. It was supposed to be a "suspended architectural marvel, stationed 200 meters above the ground, powered by two helium balloons and an anti-gravity reaction motor."

But the idea never left the ground. And rightfully so...

Dubai did, however, build artificial islands in the shape of the continents; an island in the shape of a palm; a ski resort with five trails, encapsulated in a glass dome with chilled air; two of the tallest buildings in the world; and skyscrapers as far as the eye can see... all in the middle of a desert.

And it fueled these absurd development projects by issuing piles of debt... about $60 billion.

Yep, past times of prosperity were good to Dubai. The city grew rapidly. Property prices were exploding so fast that it was impossible not to make quick cash. And once a building — occupied or not — was finished, it could be used as security to borrow even more money to build something bigger and better.

This cycle went on for years.

But the boom would soon bust, as people decided (after watching the world financial crisis unfold), that they were no longer interested in buying into the luxurious life in the middle of the desert... leaving the area scarred with a lack of demand, no money, unfinished projects, and a depressing atmosphere.

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So Dubai World, a state-owned sovereign investment fund, asked creditors for an extension on billions in debt payments.

And depsite what analysts would have you believe, all is not okay. Defaulting on billions is a big deal for a sovereign nation. The Government of Dubai just said it would not stand behind Dubai World... wiping out that long-held belief that sovereign nations don't default.

Fortunately, We're Not Looking at a Crisis Here... Yet

Dubai World's attempt to restructure debt will have a "manageable impact" on HSBC Holdings and Standard Chartered, according to Goldman Sachs. Analysts estimated that potential credit losses at HSBC would come in around $611 million and about $711 million at Chartered. As for loans and commercial real estate losses, the analysts believe that in worse-case scenario, they "expect a manageable impact at less than 1% of equity, less than 5% of net profits."

Still, what we're seeing in Dubai is part of the commercial real estate crisis we're seeing elsewhere.

There are too many commercial projects up in areas where they're not needed. Prices have plummeted as vacancy has risen. And a lot of the buildings were built on serious debt... with questions now arising when or even if that debt can be repaid.

It's only a startling reminder of how fragile U.S. commercial real estate is, especially with certain U.S. properties sitting in Dubai World's portfolio. These include MGM Mirage and the $8.5 billion CityCenter project; the Mandarin Oriental and W hotels in New York; a 50% stake in the Fontainebleau Miami beach resort; and Barneys New York Inc.

All Dubai has to do is unload some of its properties... and commercial real estate prices will plunge. It's already seen its commercial real estate prices cut in half from 2008 highs.

Sure, it's still too early to tell what Dubai will do. But it's another look into how close we are to a complete commercial real estate meltdown.

Things Could Deteriorate Further

Without a doubt, this problem has emerged as the biggest threat to our economic rebound and banks — especially regional banks, which hold more than $1 trillion of mortgages backed by CRE, which is quickly losing value.

The sector will suffer from two things, one of which is bad underwriting. CMBS owners were lent money on the assumption that occupancy and rents would keep rising. But that never happened. The opposite did: "The result is that a growing number of properties aren't generating enough cash to make principal and interest payments."

And with values sinking, vacancies soaring, and a recession making it unlikely for us to see demand pick up, banks aren't exactly jumping up to refinance deals.

My colleague — Steve Christ — sees this as a recipe for disaster... and industry leaders have estimated that 200,000 businesses and 10 percent of the nation's shopping malls will close their doors over the next year. (You can read more about Steve Christ's views on commercial real estate here).

That means that we're maybe only in the second inning here as this crisis unfolds.

So, with roughly $530 billion in commercial mortgages coming due for refinancing in 2009-2011, and some estimates showing that as many as 68% of loans maturing during that time will fail to qualify for refinancing, Steve says one has to wonder how it will all get done.

The brutal answer: it won't.

"Federal Reserve and Treasury officials are scrambling to prevent the commercial real estate sector from delivering a roundhouse punch to the U.S. economy just as it struggles to get up off the mat," said a recent Wall Street Journal article. But "their efforts could be undermined by a surge in foreclosures of commercial property carrying mortgages that were packaged and sold by Wall Street as bonds."

And, according to Deutsche Bank AG, "as property value declines and scarce credit continue to drive commercial property developers and investors into default, total lifetime losses on banks' $1 trillion 'core' commercial-mortgage holdings, or those backed by income-producing properties, would reach between 11.6% and 15.3%, or $115 billion and $150 billion."

"So far, banks in general have been reluctant to take losses on their commercial books," says the Wall Street Journal. "This 'delay and pray' strategy is preventing most banks from issuing new loans as they prepare their balance sheets for potential future losses... "

Stay Ahead of the Curve,

Ian L. Cooper
Wealth Daily

The Rare Earth Element Takeover

On Jan. 1, 2010, one tiny company took possession of a vast stretch of property in Greenland.

The area's estimated worth: $273 billion... all due to its immensely valuable Rare Earth Metals.

Now here's the crucial part...

This company's share price is set for a major run-up... as it destroys a monopoly China took 2 decades to create.

Get the full story right here.