[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.
This week, I closed a three month trade in EuroZinc (EZM) for a 25% gain before commission. The stock was bumping along a resistance. I like it for a reentry if it can break above and hold above resistance in the $3 range. I probably will wait until at least after Labor Day weekend unless it jumps on strong volume.
Finisar (FNSR) was up and is above my buy point. Denny's (DENN) though still in red territory had quite a good week and looks like it may have renewed life.
Mindspeed (MSPD) and Emcore (EMKR) essentially moved sideways for the week. Commontouch (CTCH) is at support and, for now, not much to do with them.
I'll be teaching the intense two day Stockmarket Weapons and Tactics seminar this weekend, so while I'm toiling, I hope you are relaxing and enjoying the last days of traditional summer.
Bill
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