[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.
While it may be frustrating for the impatient, sometimes the very best thing to do in the market is sit on the sideline and watch. That is what I have been doing with $10 Trader. I can say I have 22 candidates on my list for potential entries as soon as the market begins to reverse back up.
Meanwhile, Blackrock Sr Hi Inc Fd (ARK) does its job paying regular income without a whole lot of volatility in price. That is why I bought it in the first place.
City Telecom HK (CTEL) has continued to move sideway which, in my estimation, is not a bad thing in market conditions such as we now have.
Sypris Solutions (SYPR) did succumb, though only modestly, to market pressure this week when it dipped about a half buck on below average volume. I think it may be important that its biggest up day during the week was accompanied by above average volume which could well be a bullish sign.
Introgen (INGN)moved up against the strong direction of the market which can be a very bullish sign. The company also sold its interest in another company and thereby strengthened its cash position.
The market is closed Monday so maybe the long weekend will allow things to simmer down.
I can only urge continued patience for now. The time will come when some of the cheap stocks will run and when they do, I want to be present and ready.
Bill
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