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[Weekend Summary]

Dear Member:

Well, the markets this week looked like I suggested they might last week. I was speaking to one of my brokers this afternoon and he said now he knows how it must have felt in 1929. While that is probably an overstatement, the bear has attacked with a roar. Fortunately, I was able to play the downside successfully in both Trend Trader and Option Trader and had enough sense not to enter any new plays in $10 Trader. If one only enters bullish plays, it is critically important to know when not to play and this has been the time. At this point, the Nasdaq Composite and S&P 500 have come to rest around the 200 week exponential moving average and the Dow is in the vicinity though slightly above that level. If the Dow doesn't hold at that level, the next serious support I see is in the 11,320 range. So far there has not been a classic capitulation so my guess and it can only be that is we have more downside to play before the markets turn back up.

I really have to be relatively pleased with the trades I closed this week in Trend Trader. I bought JER Investors Trust (JRT)last Friday for $10.20 and sold it for $11 on Wednesday. Before commission, that is a 7.8% return in 3 business days for a bullish play in a descending market. JRT has dropped to below $10 as of close on Friday and I would suspect will provide another buying opportunity down the road.

I also hit with my 3 day trade on ProShares UltraShort Dow 30, exiting this morning with a $2.77 a share gain before commission.

Ceragon Networks (CRNT) at least stayed pretty flat in the face of a falling market and Evergreen Income Adv Fd (EAD) continues to fulfill its function as an income producer.

Monday is a market holiday so maybe things will simmer down with the long weekend. In any event,l as this week showed, I was able to turn some profits by careful selection of stock and attention to market direction.

Have a great weekend.

Bill

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