When NOT to contribute to a matching 401k plan

When working for an employer, you only want to contribute up to the percentage where the employer matches your contributions. Anything over that amount should be contributed to your Roth IRA or personal brokerage account because: 1) you have more investment selections in your Roth or personal account versus your employer's retirement account. 2) withdrawing funds from your employer's retirement account has more red tape when compared to other accounts. Account size and investment selections does matter. Access to your favorite Vanguard index fund with the lowest annual expenses is usually not accessible through employer retirement plans unless they are willing to pay their high maintenance fees.

In regards to the employer's matching contribution, avoid contributing to the plan at all, if the employer's match is in company stock. The whole point of contributing to a 401k plan is to make money. Anyone who says otherwise, is selling you a Ponzi scheme. Recent corporate examples such as Enron, Worldcom, Tyco, Countrywide Credit, and Bank of America are reasons why not all 401k plans are worthwhile.

However, if you like your company's stock, make sure you mentally set a price you will sell your shares since NO stock goes up forever. You should reset the selling price in your head at once every 3 months. You can always buy new shares later on if your company's stock resumes its uptrend, but DO NOT dollar cost average down. If the stock price is going down over several months, that is a signal that something is wrong with the company, and there is no reason to invest your hard earned money in a downtrending stock.

Waiting for Fed Hallow's Day

For the institutions, today is technically the last day of the month from their perspective since everyone front-runned the perception of a rate cut at the next FOMC meeting on Halloween of all days.

This is more of a day to verify you own at least one of the high fliers that are moving with the markets. The ones in green are in our portfolio.

Today's % Gainers:
Internet - BIDU
China - PTR, FXI
Tech - VMW, RIMM, GRMN, EMC
Metals - RIO, PCU, SLW
Solar - STP, FSLR, SPWR
Shipping - TBSI, DRYS
Casinos - LVS, WYNN

Sell 30 sh CME, 5th final purch 100 sh SPWR

MSFT up 9% and leading the market to triple digit gains for a Friday.

However, CME is down 9 points today, so to be safe, we will sell the original 30 shares at a profit. The remaining 25 shares is sitting at a loss and we're holding at the moment.

SPWR is up 7% today. BAC tried to fool us with yesterday's downgrade (didn't work!). Always go the opposite of what BAC does. Just to prove how incompetent BAC is, look at their most recent financial results from the SEC website.

We are making our 5th and final addition of 100 sh at the close as we are position maxed on this stock with this transaction.

2nd purch of CME and a note on SPWR

CME is up 4% as we speak following through on yesterday's positive reaction to earnings, so we're adding 25 shares at the close if the stock stays green.

SPWR having a red day after a downgrade by the imbeciles at BAC. We're sitting on 450 shares at the moment, so it could go either way with the volatility. For the moment, we're holding.

4th purch of SPWR 100 sh, new buy 30 sh CME

CME reported this morning and is one of the few stocks up on the day. We're going long 30 shares at the close.

SPWR looking green at close. Adding another 100 shares at the close.

Nasdaq note and 3rd addition of SPWR

Michael O'Rourke from institutional brokerage firm BTIG compiles statistics for Dow Jones publications such as Barrons. He posted this note about this year's gains in the NASDAQ.

Although the NASDAQ has gained 400 points year to date, half of those gains is because of three stocks: AAPL, GOOG, and RIMM. (And this excludes today's gain on all three stocks).

This is no different than when MSFT, INTC, and CSCO made up the bulk of gains in the 1990's. We have a narrow leadership in specific areas and its all about stockpicking.

As SPWR continues to climb, should the stock finish in the green, we're adding our 3rd purchase of SPWR for 100 shares at the close.

Add 100 sh SPWR at mkt close if green

We are up on the SPWR position on no news. With the stock hitting a new 52 week high, we will buy 100 shares at the close IF the stock is positive for the day.