[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.
Two of the main enemies of the successful trader are greed and impatience. I'm working hard to avoid both in this time of uncertainty. I did take a small loss on Fx Energy (FXEN) on Monday and then have simply stood pat awaiting some signal to move and searching for specific trades that look like they have good reward to risk ratios to me.
Blackrock Sr Hi Inc Fd (ARK) did move up well this week which is always nice. Of course, my main focus on this position is upon the good income stream it generates for an inexpensive position.
Introgen (INGN)remains as a position I am holding while looking for a big bang if the final phase cancer treatment studies are positive.
Have a great weekend,
Bill
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