Market Reverses, Alyssa Milano, and Dodgers

• The market started out lower and reversed nicely. The SP500 and Nasdaq finished up, the DOW finished down.  Advancers led decliners - good.  Volume relatively light.
• How are the financials doing?  From Yahoo Finance:  Financials were able to close with a 4.8% gain, a bit shy of their session high, and are now down 11.0% year-to-date. That means financials are no longer the worst performing sector this year.   Nice comeback.
• Are you worried about inflation?  Many people are seeing the amount of stimulus and debt the US is putting out there, combined with very low interest rates, and thinking the eventual result will be inflation.  Somewhere. Down the road.  Looking for inflation defense?
• You know, I'm not worried, just yet, about the end of the national currencies and the eventual need for a global currency (and a mark in your hand or forehead, so you can buy and sell).  But I do believe that the Fed will have to keep a very close watch and try to be proactive.  They're not the best at that, but lets hope they get one right.
• I think the economy has turned around and that we're going to see economic growth start to show up in the numbers.  Not just here, but in other world economies, too.  My thoughts are that the next thing we're going to see is a big increase in energy demand.  I've said it before.  Here it is again.  Watch energy.  Oil.  We (the US) don't have much of an energy policy other than to keep doing things the way we have been doing things.  So, an oil crunch will come.  Again.
• Giants-Dodgers game on this afternoon.  Dodgers smoked a 6 run inning to take a 7-1 lead.  Most of those runs came off of 8-million-dollar man Randy Johnson.  Love to see the Giants get pounded. Love to see an $8M pitcher get pounded.  Life is good.  Listening on the iPhone MLB.com app!  Of course!  Orlando Hudson just tripled, and has hit for the cycle. First time since Wes Parker in 1970.

Dodgers fan Alyssa Milano with her iPhone!

Stocks, Dodgers, Alyssa Milano

• Alyssa Milano is looking for a big stick ...on the Dodgers.  She seems a little concerned about the lack of firepower on the bums.  I think she's right.  And I think she writes a pretty good fan blog.   Good job, Lyssa.  And keep those one-liners from your brother coming.
• Somebody sure took a big stick to the stock market today.  In the bull leg up, all the dips were bought.  Every sign of weakness was reason to buy.  Every sign of strength was reason to buy.  Every comment by the Fed was bullish for stocks.  Anyone selling was a fool.  But something changed last week, and we're seeing it carry through this week.  Today the market rallied off of the early lows, but all that was taken out late in the day as we closed at the lows.
• The 10-yr Treasury is at a five-year high.  Greenspan stated concerns about inflation in China, as inflation hit 3.4%.
• We just came from a world of .6% GDP and 2.6% CPI.  The fear is that we're running hot and inflation is perking up.  We'll get inflation numbers later in the week, and those could be market movers.
• Kiplinger says stocks are going to keep going up.
• Foreclosures jump 90% from 2006.  "Such strong activity in the midst of the typical spring buying season could foreshadow even higher foreclosure levels later in the year," said Saccacio. "Certainly not every community nationwide is seeing an increase in foreclosures, but foreclosed properties are becoming more commonplace and adding to the downward pressure on home prices in many areas."  It certainly won't add to the upward pressure on home prices! 
• Got Milk... Money?  From Fox News, citing the skyrocketing prices of milk.  Move over pains at the pump, milk prices are hitting record highs and still climbing, and on the way up hitting consumers in the pocketbook.  "It's cheaper to cook breakfast for children. Cereal and milk could cost $10," said Food Mart manager Tracy Duke. Last week the Alabama store had milk for $4.39 a gallon.  OK, focus on the part of the excerpt where "it's cheaper to cook breakfast..."  Because, that is what folks will do.  Think "Let them eat pancakes."  Or, eggs.  Whatever.   If it costs $10 for cereal and milk, people will make other choices.  Try apple juice on the cereal (it's quite good, actually).  As folks switch from milk and cereal to other things, milk supplies will increase and prices will go down. 
• And if they don't?  Screw 'em.  Cows are bad for the environment anyways!
• I remain in low beta holdings with plenty of cash on the sidelines.  Nothing has really changed there.  Dumped some mo-mo names on the lift mid-day. 
• So, growing up in SoCal, I spent many a day watching the Dodgers.  My dad was a huge baseball fan.  I can't help but think of him whenever I see a game.  And he was big on leaving early to avoid the traffic.  It'd be a sprint to the car in the 8th inning!  He'd want to hurry so we could listen to the last couple innings while driving away.
• My answer to Alyssa Milano on what the Dodgers need?  A better farm system.  I just don't think revamping the team every year is a solid solution.  Lets go old school.  Recruit and retain players.  Build fan loyalty and player recognition.  I don't even know if that's possible these days with guys out there chasing dollars instead of wins.  But certainly something to try.  Better than missing the playoffs or getting knocked out in the first post-season series year after year. 
• What the Dodgers are doing now is like Rome hiring foreign soldiers to fight their wars.  Not a lot of brand loyalty when your butt is on the line.  We see these guys who seem to be more interest in cashing paychecks.  And next year they'll be on somebody else's army.  Er, team.