[Weekend Summary]
Dear Member:
EuroZinc Mining (EZM) has moved toward the top of a channel. The rest of my positions are at or running along support (STEM, MSPD, CTCH and DENN). I hung onto Denny's (DENN) because there has been a mild indication of a possible turn back up, but I'm definitely at the bottom of what I'm willing to do with Denny's.
I'm disappointed that I haven't seen much upward movement in my current positions until I see that they have not done badly in the face of the dramatic drop in the major indices. This week, alone, the Dow 30 fell more than 350 points, the Nasdaq dropped over 84 points and the SP-500 was down more than 35. That's a pretty bearish week and my positions have at least held support so far.
I haven't had to close a losing trade in the $10 and Under classification so far. Sometimes, I feel pressure to send out trades so subscribers won't feel cheated, but then I remember I'm trying to show you my trading principles in action. One of those principles is that unless I find a trade that meets my criteria, I don't trade. Sometimes it's better to be in cash than in a frenzy that the market is going down. This market has been falling and anything but the most careful pick is like trying to catch a falling knife -- it can be done but the chances of getting hurt are great.
The point is I only try to enter trades that I think will make me money. Obviously that isn't going to happen every trade, but I am trying to give myself the best odds. Buying into a falling market doesn't do that in my view so I'm buying very little right now.
$10 and Under teaches a bullish strategy. One of the parts of a successful bullish strategy is don't be in stocks that are likely to go down. I assure you I am watching for the turn. I thought Thursday could be the capitulation and the market might back up at least temporarily but so far it hasn't. When it does, I plan to be there.
Next week, the fed could really help this market or it could send it into deeper depths. Until then, I'll probably stay in just a few bullish positions while I wait and see what happens.
Have a great weekend.
Bill
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