[Weekend Summary]
Dear Member:
The major indices backed off a bit this week after last week's upward move. The drop this week was on fairly light volume, however, and a downward move on light volume is often thought of as bullish since the direction is not accompanied by heavy trading. Again, we are in the depth of the summer doldrums and that may well continue through Labor Day as the major players enjoy the final vacation days of summer.
As an aside, last weekend, as part of the Newsletter, I mentioned FRO as a stock to watch. As is often the case, I received some email advice not to buy FRO on Monday from someone who had met with officers of the company several years ago and who owned the stock. From the open Monday to the close today, the stock moved up $2.13. While I am always interested in what other traders have to say, I am never guided by their advice. If the advice were based on insider information, it would be illegal to use. If it isn't, I would much rather rely on what the technicals are telling me. Please don't think I am picking on the well-meaning subscriber, I only want to point out how dangerous it can be to follow trading advice without making one's own independent analysis.
I sent an alert about buying some Clear Channel Communications (CCU) today as it jumped up on strong volume on the weekly charts.
Iamgold (IAG) had a decent week and remains about 4% above my buy price.
Nuveen Senior Income (NSL) continues to hold its own and is about 2.5% above the buy point and has gathered another 2.5% in dividends since my entry. Remember, this one was purchased with the expectation that it would be fairly flat, but pays a high dividend on a monthly basis.
Expect low volume until after Labor Day.
Have a wonderful weekend. I'll be teaching a seminar Saturday and Sunday.
Bill
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