[Weekend Summary}
Dear Member:
Coming into Memorial Day weekend and the summer doldrums for the markets, each of the major averages closed with a down week. Nothing too significant so far, but we need to see whether they are taking a breather or whether this is the beginning of a retracement. Everything had been just motoring along until Mr. Greenspan did what Mr. Greenspan used to do --move the markets with a pronunciamento. Undoubtedly the market is due for to step back, but the multi-million dollar question, as always, is when.
After a little over a year, I sold Nuveen Senior Income (NSL)when it dipped below the trend. It leaves my portfolio with my thanks since it was a steady performer and yielded regular income every month. Overall, and excluding a total of about $20 in commissions to get in and out, NSL produced about a 20% gain (including dividends received) in just over 12 months.
Evergreen Advantage Fd (EAD), another position I entered primarily for income has provided the income and also a little price appreciation. It is currently in the "win column" and continues to walk the trendline tightrope up. I do have a finger on the trigger in case of a fall beneath the line.
Palm, Inc. (PALM) moved up a hair this week and is back within the $16 to $19+ channel. I should note, however, that it appears to be forming a head and shoulders on the weekly chart. A break down through the neckline, if it occurs, will probably result in my switching from my current bullish position to some bearish strategy.
Realty Income Corp (O) bounced up off support. This company is a retail REIT (real estate investment trust) that pays a decent dividend and offers a chance at price appreciation as well.
Enjoy your Memorial Day weekend.
Bill
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