[Weekend Summary]
Dear Member:
I can only speculate what would have happened Tuesday if the Fed had not acted to reduce rates substantially. In a sense, at least, it was a capitulation day, but late action Friday suggests there may well be more downside to come. The Dow has managed to hold at the 12,000 level and was actually up modestly for the week. The S&P 500 held at the 1300 level and wound up about flat for the shortened week. The Nasdaq Composite has been able to hold its head above water at the 2300 level. Interestingly, the homebuilders showed some renewed life this week with the reduction in interest rates. All in all, the markets remain volatile and I would definitely not be surprised to see a further drop to shake out the market before the next upturn. It is time to keep powder dry or at least exercise great care in entering and protecting positions.
In my estimation, it was not the time to rush into bullish positions so I didn't. One great thing about diving markets is that they provide super opportunities for bullish entries when they turn and that is what I am looking for with Trend Trader.
Both Ceragon (CRNT) and Evergreen Income Adv Fd (EAD) showed some life this week. EAD bounced a little over 11% from the low of the week and CRNT, though still a dog, managed quite a strong move in the face of a tough market. EAD, of course, pays a good, regular dividend and CRNT can be a vehicle for writing covered calls.
Trend Trader has closed 28 straight winning positions dating back to last February and, while that can't last forever, part of the reason for this string of winners has been careful attention to entries and exits. I will continue to do my best in that regard and want to make it clear that I believe it sometimes is best to sit in cash and wait for the right opportunities. That is what I did this past week. Some stocks, like SWK that I will mention in the Newsletter this weekend, may be ready to provide solid bullish entries and as soon as I see what looks like the right stock with the right entry, I'm ready to jump onboard. I know it will be coming; I just have to wait until it does.
Thanks for subscribing and have a wonderful weekend.
Bill
|
