notes for Monday follow on twitter @jimiuorio

   Tomorrow begins the first full week of trading since the fed unveiled plans to inject 40 billion per month into the system perpetually. What the fed hopes to accomplish here, is to lower mortgage rates to spur a wave of refinancing and maybe kick people off the sidelines and into home purchases..The problem, is that there were approximately zero people who were waiting for lower rates in order to refinance their home, so im pretty sure that it will have no effect in that regard. The new program will ,however, have several interesting effects and ramifications in financial markets. The new fed program has already begun to hurt the u.s. dollar and make holding cash a very uncomfortable position..Savers are forced between choosing to stay on the sidelines and watch their buying power decline or jump into riskier assets to try and counterbalance the dollars drop. Where do reluctant risk takers go when pushed, against their will, into riskier assets??
     The first place i will look tomorrow is into some of the dividend paying names that fell out of favor over the last few months. SO, southern company is one i will look for an entry point into,as it has had a fairly steep decline over the last few weeks..I also may take a look at clorox (clx)the reasoning for clorox is that it has taken a hit and people gotta buy bleach.
    After reading the previous paragraph please dont make the assumption that i am becoming defensive, because i dont think i am..I have long positions in higher beta names like bac, hpq, f and hov.  Many different things can rally with the tailwind of unending fed money.
    Five years from now i think that we will agree that last week marked a change in the trajectory of home prices. After years of being out of favor its become apparent that people need to own hard assets in order to offset declining dollar values. Im beginning to think that homes will replace long term treasuries on the hierarchy of safe haven vehicles. I exclude, sadly , Illinois real estate as the state appears to be in for a self inflicted swan dive. man that's a tough sentence to write since i have a decent size position in Illinois real estate..oh well...We all new what was going to happen in the cpu teachers strike. they get whatever they asked for because they've learned a little secret,,,the people they are negotiating with are on the same side..odd system...tomorrow i will post some option strategies i am looking at so stay tuned and have a great night...