[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.
Well, I made some money in spite of market direction in the $10 Trader this week. My Iamgold (IAG) trade lasted only a day, but resulted in a 6.3% gain before a total of less than $20 in commissions.
City Telecom HK (CTEL) though below my entry is holding above the 40 day exponential moving average so I have no reason to abandon that ship for now.
Blackrock SR Hi Inc Fd (ARK) is doing the good income return job and today showed signs of a potential upturn in price as well.
Introgen (INGN)is still a hold pending ultimate news on the cancer treatment in final phase testing.
One great thing about a market drop for the $10 trades is that there will be many more candidates in that price range as the shake-out continues. As the IAG trade proved, there is no reason why profitable trades can't be made in bearish markets; they are just more difficult to find.
Have a super weekend.
Bill
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