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How To Profit in 2010

Written By Brian Hicks

Posted January 16, 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.

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 CoachWe’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.