[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.
I closed two positions this week. Kulicke & Soffa (KLIC) broke a price support and I pulled the plug to cut losses. Silicon Storage Tech (SSTI) rewarded my patience by closing with a before commission gain of 10.4% in a little more than a month.
Today, in the face of market deterioration, I opened a position in Universal Insurance Holdings (UVE) which was able to hold its head up against general market direction and close a little above my entry.
Hypercom (HYC) also held against the storm and is near my entry. I would like to see it bang through $5.20, and, if it does, it looks like it has a reasonable chance to move another 40 to 80 cents.
The two remaining positions, Blackrock Sr Hi Income (ARK) and Introgen (INGN) are held for specific reasons. ARK for the stream of income it offers and INGN still awaiting news on final phase testing of a cancer treatment as well as news regarding others in the pipeline.
I suspect a drop in the market will ultimately provide some great buying opportunities in the cheaper issues.
Bill Kraft
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