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[Weekend Summary]
Dear Member:
Well, my suggestion in last weekend's summary that the markets looked like they might tend to stay bearish for a while hit the mark with the action on Thursday. I must have shot myself in the foot with some of the $10 Trader subscribers who bailed after my comments. I do think it is important to play the market I am dealt and to be honest with myself, but that does not mean that one cannot make money in a bearish market with bullish plays. The trick there is to be more cautious with picks and be very selective with entries and keep a close eye on the stock. The Option Trader has the ability to trade the downside a bit more easily by doing things like buying puts and creating bearish call or bearish put spreads. Those who only utilize bullish plays must just apply stricter standards when the markets are turning down. I am not convinced that the markets are ready to turn back up just yet in spite of the little breather on Friday. Volatility is still high and rising though it backed down a bit from Friday's highs. Increasing volatility often accompanies a falling market.
Realty Income (O) recently announced a 25% revenue increase over the same quarter last year and has occupancy at a lofty 98.6%. It increased the monthly dividend for the 39th consecutive quarter and is now paying an annualized amount of $1.53 a share. The stock price jumped $3 this week on strong volume.
I made a quick profit on my Taser International (TASR) trade when I pulled the plug with a 45 cent gain in two days. That worked out to about 2.8% in a couple of days. I would be really happy if I could make over 1% a day on all my trades.
After retreating to support, Palm, Inc. (PALM) has made a strong move the last couple of days.
Evergreen Income Adv Fd (EAD) is primarily an income position for me and it is doing well in that regard. The share price is down since my entry, but appears to be sidling along a support. The dividends are paying me about 9.6% on my original investment.
The DB Commodity Index Fd (DBC) is a way to play commodities somewhat unrelated to the stock market and I hold the position in part as a hedge, but also for potential gain. DBC also retreated to the May support level and then made a good bounce on Friday.
Since my current bias is still somewhat bearish, I will be looking for specific pick and will control my entries and exits very carefully as volatility remains high.
Have a wonderful weekend.
Bill
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