[Weekend Summary]
Dear Member:
Today was reminiscent of the child's saying: "Ashes, ashes, they all fall -- down! Each of the averages plummeted today breaking recent uptrends. Volatility rocketed along with the fall. The Dow and S&P 500 fell to the 100 day exponential moving average without pausing at the 50. Though the Nasdaq only dipped down through the 20, it certainly was not a day to bring great hope to the bulls. As I mentioned in an alert to Trend Trade members earlier in the week, it is October. Historically, that bodes extreme caution for the bulls.
As many of you know, I have been awfully wary for a while. Today supported the wariness. Earlier in the week, I bought some ProShares Ultrashort QQQ ETF (QID) which are designed to move up when the Q's move down. I entered this position both as a pure directional play and as a partial hedge to my portfolio. QID was up 4.76% today.
I also entered a position in Kindred Healthcare (KND) today after determining that the long term care sector was moving up and it looked like KND might be showing some leadership. The stock did drift a little after entry, but appeared relatively unaffected by the markets' overall fall.
Palm, Inc. (PALM) also showed some real strength the last couple of days. Ceragon (CRNT) stopped its' fall and has been steadying.
Once again, Evergreen Income Adv Fd (EAD) is held for the income it produces and, so far, I have no complaints about this one as it continues to pay an annual return of more than 9% on my original investment.
I suspect it is a time for bullish stock traders to be mostly in cash as it looks as though the markets could be in for a rough ride. Of course, today was options expiration and that always seems to add volatility, but today looked like a little more than that to me.
Bill
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