Markets look shaky; Dividends in decline ...

As I wrote in today's Money & Markets column, I strongly suggest more aggressive investors take some profits in their speculative positions that have run up strongly.

Reason: We are at critical technical levels on the major indexes AND I see no major fundamental reasons for the market to go higher in the short-term.

Meanwhile, dividends are getting harder to find. According to Standard & Poor's, the second quarter of 2009 was the worst for dividends in nearly 50 years.

That doesn't mean there aren't still solid income stocks out there, of course. My Dividend Superstars subscribers have seen a number of increases despite the meltdown. However, you need to be much more selective than you were a few years ago.

Mortagage applications post big drop ...

Newsflash: People don't want to borrow money when rates surge!

Seriously, dude.

According the Mortgage Bankers Association, mortgage applications for the week ended June 26 dropped 18.9% ... the lowest reading since November 2008.

Interesting, isn't it? Right back to some of our darkest credit hours.

In my opinion, this is very bad news for the housing recovery. And it's one more reason for people to start begging Washington to manipluate rates yet again. The magic number -- according to all our favorite real estate cheerleaders -- is a 30-year fixed that begins with a "4."

No, not 40% ... that will probably come later once everyone realizes just how much money we've created out of thin air. =^)

Meanwhile, all indicators are pointing to worse-than-expected job losses when the official number is released this Thursday.

So I ask you, dear reader, how exactly is housing supposed to be bottoming right now? How are all those $400K and $500K houses going to move off the market?