[Weekend Summary]
Dear Member:
Frankly, I'm surprised, but the rally continues. The Dow, NASDAQ, and SP-500 were all up for the week and held on today as well. The Dow is at a double top and needs to break above 12,342.52 to continue the upward march. There are some warning signs in that the volatilities are beginning to increase. An increase in volatility often predicts a downturn in the market. So far, however, we have not seen the downturn.
I entered new positions in Qwest (Q) and Finisar (FNSR) this week. Both remain near my midweek entry prices. Each offers a quick escape if they turn against me.
Healthtronics (HTRN) remains in an uptrend.
Denny's (DENN)and Mindspeed (MSPD) are moving sideways. Denny's, however, is still faithful to the uptrend line. Mindspeed remains in a channel, but it is at the upper end of that channel and the longer it remains in the channel, the stronger I would expect the move could be on a breakout.
Emcore (EMKR) went up to resistance and has backed off a little. Some profit-taking was not surprising after the fairly quick advance.
Blackrock Senior Hi Income Fund (ARK) has made a sharp move higher. Friday, it broke down through the uptrend line which is often an appropriate signal to exit. I suspect Friday's dip resulted from the upcoming dividend which is payable on December 19. I am staying with this position because I entered it for the generous income stream. If I were playing it simply for price appreciation, it would be time to leave.
Have a great weekend.
Bill
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