[Weekend Summary]
Dear Member:
Today looked more like the capitulation that I have been suggesting is due, but I still am not sure that we are there. The major averages fell fairly dramatically today on strong volume but my best guess is that we will see further downside and at least a testing of the intra-day lows in January before a return to the bull. At times like these I believe that there is even more reason to be aware of the risk control and risk aversion techniques set out in my book "Trade Your Way to Wealth." Those who know and use some of those strategies are less likely to suffer the significant losses of principal such as those experienced by so many in the 2000 crash and aftermath when the tech bubble burst.
I have to keep with the same important refrain -- there are simply times not to enter trades where I want the stock to go up and this is one of those times in general, and especially with the cheaper stocks. The good news is that when the tide turns, and it will, there are a multitude of great candidates out there. In any given year, the vast bulk of profits tend to be made on a small percentage of trades (roughly 3% according to a well known speaker at Traders Expo) so the time will come.
Meanwhile, in my $10 and under portfolio, City Telecom HK (CTEL) managed to move up 35 cents for the week and Blackrock Sr Hi Income (ARK) eked out a penny gain. Of course, ARK's value to me lies in the steady stream of income it has been providing.
Himax Technologies (HIMX), Sypris Solutions (SYPR), and Introgen (INGN) each dipped a little. Introgen (INGN) only lost 3 cents and as I have often repeated, that stock is a speculative play based on final phase testing results of a cancer treatment. The news in that direction has been positive, but only the final results will tell the tale.
Have a great weekend and thank you for helping to make "Trade Your Way to Wealth" the success it has become.
Bill
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