[Weekend Summary]
Dear Member:
Call me chicken, but a market rising on decreasing volume at the end of summer and approaching Labor Day gives me cause for concern. A market that is moving up on decreasing volume is generally considered bearish and I have no reason to think otherwise right now. I doubt that direction will be determined until the big players come home from the south of France and the Hamptons after Labor Day.
Several subscribers wrote expressing some appreciation for my caution at this point and while I thank them for their sentiments, I can only say I am trading my own money and I only want to take what the markets will give me and right now that isn't too easy to determine. As I have mentioned over the last several weeks, I have a lot in cash and am entering new positions with great caution.
Realty Income (O) has had a decent month and bounced Friday after a little retreat. It remains a good income producer that has shown no reason to abandon ship.
The Powershares DB Commodity Index (DBC) moved up this week and offers some terrific upside potential as well as a potential hedge against equities in general in my opinion.
Evergreen Inc Adv Fd (EAD)is primarily an income play for me, but it also evidenced a nice bounce this week.
Palm, Inc. (PALM) has looked strong since it bottomed on the 8th. There is much positive to be said at the moment with both DMI and stochastics in the plus column.
The biggest issue is market direction over the next couple of weeks, but so far I am not dissatisfied with my current positions, few though they may be.
Thanks for subscribing and have a wonderful week.
Bill
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