[Weekend Summary]
Dear Member:
It is hard to say exactly where the markets are headed. Has this week been the beginning of a Santa Claus rally? Are we in a bear market rally with another fall ahead of us? I suppose it could be either or both. The information is not really clear as I see it. The Nasdaq 100 had a strong gain this week though it fell back a bit today. Interestingly, it stopped the dip today right at the 100 day moving average. That average seems to be taking on added significance since the Dow Industrials with a big week up stopped just below the 100 day as did the SP-500. The SP-500 hit both a horizontal price resistance and came up to the 100 day before turning back down today. Something's gotta give next week with respect to the 100 day. It will either be a resistance that can't be overcome or it will become a new support for the S&P.
I have kept the caution flag out since I am not yet convinced that we have seen the last of the bear. As a pure protection I am continuing to hold my ProShares UltraShort QQQ ETF (QID). Though QID suffered a tough week, it gained some ground back today and on higher volume. As I noted in the introductory paragraph, I think much will be told as the markets deal with the 100 day moving average.
Ceragon Networks (CRNT) bounced a little this week and, as noted in earlier summaries offers the possibility of regaining some of the paper loss by writing covered calls against the position.
Evergreen Inc Adv Fd (EAD)continues to help pay bills with its regular dividends and did enjoy a price move up of 55 cents for the week.
I have found that patience is a critically important ingredient of trading. Certainly I have been impatient to find what I consider to be good new trades, but I have not yet found what I want. A positive move in relation to the 100 day moving average will produce a number of candidates while a negative move will be good for QID and present other bearish ETFs as entry candidates. So, I counsel patience for myself. The answer will soon come.
Have a great weekend.
Bill
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