[Weekend Summary]
Dear Member:
The first three trading days of 2007 were pretty wild. On Friday, only 6 of 239 groups were up. OEX and NASDAQ volatilities both broke above resistance with the CBOE volatility at resistance. The S&P 500 and Dow were down this week with the Dow forming a double top resistance. The NASDAQ managed an 18 point gain. It really looks to me as though the market is ready to take a breather. I have to qualify that statement, however, because we are coming into earnings season and a number of positive surprises could very well result in a postponement of any downward movement.
Welcome and thank you to the many new subscribers, and many thanks to those who've been with the service for a while. This week, though shortened, was a little unusual in that I found no $10 trade that I really liked. My experience teaches me that it is much better to hold back than just to trade for trading sake.
Denny's (DENN)is at a critical juncture between the uptrend line and a price resistance. If it can break through the price resistance, I may be in for a nice ride.
Emcore (EMKR) has been in an uptrend since November but has not yet been able to break the $6 barrier. If it can, I suspect it could enjoy a good upward move.
Mindspeed (MSPD) remains in its channel. Both Healthtronics (HTRN)and Navios Maritime (BULK) are continuing in their respective uptrends.
Iamgold (IAG) retreated to support but is now signaling a possible reversal up. I have remained in my position since I suspect that gold may increase if the markets enter a decline.
Blackrock Senior High Income (ARK)is still above my entry point, held at the 50 day moving average, and pays its next monthly dividend on the ninth.
For the moment, patience is the watchword. Have a great weekend.
Bill
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