Tighter Requirements for FHA Loans Loom - It's about to get tougher to qualify for a FHA mortgage. The FHA is adding more-stringent lending requirements and higher fees borrowers must pay to get the federally-insured loans. Beginning this spring, the FHA will raise mortgage insurance fees that borrowers must pay, cap the amount of cash that sellers can contribute for closing costs and require higher down payments for the borrowers with poor credit scores.

The Dow Jones Industrial average lags as the NASDAQ and Russell 2000 continue their dominance.  Lagging the NASDAQ and Russell 2000, the Dow Jones Industrial average continues to be a weak spot in the market.  Today was no exception, but volume on the NYSE jumped.  Pushed by trading in Citigroup and AIG volume rose on [...]

Another Day of Gains as Volume Ends Mixed

The market is slightly lower this morning, though its already well off its earlier lows. Senator Corker just gave a press conference that a financial reform bill is likely to be unveiled Monday, even though it will not be a bi-partisan effort. It appears Sen. Dodd is under some pressure to get a bill out, even though it may not be ready for primetime. The uncertainty around this issue is likely an overhang on the financial sector today.

Now Pres. Obama is coming on TV to make some comments, and his appearances have never helped push the markets higher.

On Sunday we had a little over a foot of snow fall here. After a day off on Monday we had a little less than a foot of new snow on Tuesday. The area behind where we park one of cars (at the top of our very long and steep driveway) has over four feet of snow accumulated; this is a spot that does not get much sun.

Evidence indicates that hedge fund investors should lean toward low-profile funds.

Advancers Outnumber Decliners Solidly As Tech Sector Provides Leadership-
The major averages ended higher on the tenth anniversary of 2000's dot-com bubble. Volume totals were reported mixed and very near the prior session totals; slightly lighter on the Nasdaq and slightly higher on the NYSE. Advancers led decliners by a 2-to-1 ratio on the NYSE and by nearly a 2-to-1 margin on the Nasdaq exchange.

The stock market is higher again this morning, defying those who continue to call for a pullback. I have been talking about how even though the market had become overbought, instead of pulling back it mostly went sideways while the overbought condition got worked off. This was a positive sign, and as you can see in the chart below, the oscillator has confirmed the recent highs in the market by making a higher high.

A site called Simolean Sense posted a lengthy interview with James Montier who of course now works at GMO. Montier's comments were really a smorgasbord behavioral observations, assessments of psychological obstacles and other useful nuggets.

Cave Creek named Arizona's top affordable suburb - With its Wild West legacy and open parks, Cave Creek has earned the title of Arizona's "best affordable suburb" in a 2010 report by Bloomberg BusinessWeek. Cave Creek unseated Fountain Hills, which won the award last year.

Setups abound.  (The Reformed Broker)

Is the risk trade back on again?  (The Money Game)