[Weekend Summary]
Dear Member:
The Dow 30 Industrials, S&P 500 and Nasdaq each made relatively modest gains today and over the last 5 days. That is the bullish side of the story. However, neither the Dow nor the S&P 500 could climb back above the 200 day exponential moving average. The Nasdaq did stay above that line after reaching down to touch it today. I would classify the situation as an intermediate bear requiring extreme caution in entering bullish positions. I would like to see the Dow and S&P climb back above the 200 day before jumping into too many bullish plays. That is not to say that there are not bullish stocks out there; it just requires more care and effort in trying to find the right ones.
The markets are closed for Thanksgiving and have a shortened trading day next Friday.
In keeping with my overall analysis of market direction, I have been very cautious and only entered a single Trend Trader position this week and that one bearish in the ProShares UltraShort S&P 500 (SDS). I am down a bit on that one, but am happy to have it as a partial protection (and potential profitable play) if the market cannot get some upward steam.
Nothing new with Evergreen Income Adv Fd (EAD) which is doing the job of paying regular income.
Even old Ceragon Networks (CRNT) has held at the 200 day exponential moving average and at a Fibonacci retracement level, both of which are positves in my estimation. As I mentioned last week, this one is also a candidate for covered call writing to reduce basis and bring in income.
I hope you and your families have a wonderful Thanksgiving.
Bill
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