[Weekend Summary]
Dear Member:
Volatilities as represented by the VIX, VXN, and VXO dropped off sharply as the markets ran up in response to the Fed lowering an important interest rate a somewhat surprising 1/2 point.
The Nasdaq Composite Index rose nearly 70 points for the week and is approaching the 2725 level where it would enter territory not seen since the latter part of 2000 and the early part of 2001. The SP-500 was up strongly as well as it heads for the July highs. 1550 looks like the next magic number for the S & P. The Dow Industrials are pushing toward the 14,000 mark they hit in July.
I finally sold my Realty Income (O) this week after a run-up above my entry price. Including dividends, the play turned out pretty well even if it didn't make it to the 'barn burner' class. Overall, before small commissions, it returned 3.4% in 5 months. As those who have been subscribers for some time know, that is a fairly long term trade for me.
World Wrestling Entertainment (WWE) made a $1.29 move up this week taking it into positive territory. It looks like WWE could hit $16 if it can push through the little resistance at $15.50.
The Powershares DB Commodity Index tracker (DBC) closed up $1.44 above my entry.
Palm, Inc. (PALM) managed to gain 2.6% over its' low for the week though it remains in consolidation.
Evergreen Adv Inc Fd (EAD) was flat for the week but continues to be a good income producer. The chart also looks like EAD may be ready to complete a bullish reverse head and shoulders formation.
Pfizer (PFE) also moved up this week and is above my entry.
Overall, it appears that the market may be ready to extend to new highs for the year, but in light of the big move this week, it may also provide some excellent buying opportunities on bounces from expected retracements.
Have a good weekend.
Bill
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