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[Weekend Summary]

Dear Member:

The bad economic news is finally catching up with the markets. All the major averages fell this week and my guess is they have some more to go. I would not be surprised to see the Dow drop another 250 points to the 12750 range where it found a bottom in August and the S&P maybe fall another 50 points or so to the 1400 level. The Nasdaq was hit fairly hard this week and could also retrace to the August lows which are about 177 points away. If the averages fall below the August bottom it could well be "Katie, bar the door." All of which does not mean that there isn't money to be made. Even in the face of the downdraft this past week, I had profitable trades in the two most bullish services, the $10 Trader and the Trend Trader. Of course, bearish trades can be fashioned in Option Trader with greater ease, but money can certainly be made in the markets in many different ways regardless of direction.

I am really glad I stuck with my position in the ProShares Ultrashort QQQ ETF (QID) which was stopped out today for a $2.52 a share gain in less than a month. I may well take another position here or in DXD or SDS, the ETFs that move opposite the Dow and S&P 500 respectively. The important thing to know is that there are vehicles available to profit from downside moves as the QID trade proved.

The Ceragon (CRNT) is nowhere near where I would like, but it gave a hint of turning back up today. Though the Trend Trader is not a covered call service, I should mention that CRNT does have options and the stock can be used to bring in regular monthly income by the sale of covered calls. I often use that approach when I am stuck in a stock that has fallen quickly and which I suspect will bounce back because of fundamentals.

Evergreen Inc Adv Fd (EAD) continues to fulfill its function as an income producer.

I will try to enter bullish plays near term only with extreme caution since I believe the markets have farther to fall. ETFs like QID, DXD and SDS are in the front of my radar for now.

Have a great weekend.

Bill



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