[Weekend Summary]
Dear Member:
The major indices have gotten a little wilder this week. Volatilities are up and each of the major indices dropped for the week. Today, the Dow 30 Industrials broke down through the 18 day moving average and settled around the 40 day. The broader SP-500 closed below the 40 day and settled just above the 50. The Nasdaq also closed beneath the 18 day. In my view, this market has been due for at least a retracement and that now seems to be underway.
I stood pat this week with only three positions in the face of the bearishness in the markets. Though each dropped in price a bit this week, I am happy to have modest positions in the income producers -- Realty Income (O) and Evergreen Income Adv (EAD). EAD pays around 9.6% annually at my entry price and O pays in the vicinity of 6%. O has fallen near a level where I have to have my hand on the escape hatch and I'll watch carefully for further signs of weakness.
Palm, Inc. (PALM)is still in a trading range and remains in the uptrend that began in February.
Extreme caution is in order for the bullish player in my opinion right now. I have been looking at some of the ETFs that represent short positions that can be played just like a stock. There may be some money to be made there. Sometimes, it's just good to be holding cash and/or income producing equities.
For now, I'm tightening the screens on my filters as I look for the bullish opportunities.
Bill
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