Dear Member:
The markets went on a bit of a ride this week. It has just been a matter of time before we saw a retracement and it came this week. Now the question is where from here and while I certainly don't pretend to know the answer, it has the feeling that we may be in for a bit of a downdraft. However, volatilities settled back down today after the jump yesterday and the major indices rebounded a little albeit on somewhat lowered volume. In any event, the caution flag is now out as we see what the early part of next week brings leading into options expiration.
In spite of overall market direction, Palm, Inc (PALM) enjoyed a strong upward move this week on increased volume. It is back in the unrealized profit column but bears close watching because of market conditions.
Though Evergreen Income Adv (EAD) suffered a dip this week, it is close to my entry price and is paying a dividend in the 9.6% per year range at my purchase price.
Realty Income (O) dipped with the market drop, but did have a nice bounce today. It also pays a decent dividend though not quite on the level of EAD.
I intend to be super cautious about entering new trend positions as we see whether the dip this week is a normal retracement or a more significant change in market direction.
Have a great weekend.
Bill
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