[Weekend Summary}
Dear Member:
The markets do not yet look ready to turn back to a sustained bull to me. In fact, the Dow, Nasdaq, and S&P 500 have each formed a head and shoulders on the daily line charts which I consider to be bearish. There still has been no real capitulation so I expect a greater liklihood of downside movement before we see any sustained rally. If the S&P does not bounce in February, it will be the first time since 2002 that it has been down 4 straight months. All of that means to me that the inclination will be to bearish plays with only very careful selectivity leading to bullish entries in my own portfolio.
I'll be speaking at Traders Expo at the Marriott Marquis, Times Square on Sunday the 17th. The Expo is free and my subject is the subtitle of my book. The book as you probably know is "Trade Your Way to Wealth" and the subtitle is "Earn Big Profits with No-Risk, Low-Risk, and Measured Risk Strategies." Please make sure to introduce yourself if you attend the Expo. I'd really look forward to meeting you.
Knowing when not to trade can definitely be as important as knowing when and what to trade. I took my own advice this week and entered no new Trend Trader positions. I was tempted to buy some bearish ETFs but decided against it since I still see a lot of market uncertainty.
Evergreen Income Adv Fd (EAD)is near the upper side of a channel and continues to produce regular income. Nothing new to report on Ceragon (CRNT).
Bill
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