[Weekend Summary]
Dear Member:
Even with the huge bullish day on Tuesday, the Dow, Nasdaq Composite, and S&P 500 stayed within a stone's throw of their close last week. Volatility reigned supreme and increasing volatility is often a sign of a continuing downward direction in the market. The Fed is certainly trying to keep the lid on and there is even the thought that if may lower interest rates as much as a full basis point. Of course, the problem with that is it could feed inflation which is also a market enemy. Bear Stearns (BSC) lost almost half its value today on a downgrade with the suggestion it go become worthless. Clearly fear is driving the markets for now. The good news is this isn't the first, and quite likely, won't be the last time that fear has ruled. In my view, and as I have been contending for quite some time, it is not yet the time to dive onto the bull cart. That time is coming, and when it does, there will be an abundance of candidates.
I added a position in New Oriental Energy and Chemical (NOEC) this week and it is a little below my entry, but held at the uptrend line. There is a bullish divergence in MACD and that could bode well for the stock. NOEC was one of the very few $10 and Under candidates that looked to me like it could provide some upward momentum in the face of this very volatile market. Only time can tell, but, so far, it looks OK.
I hold Blackrock Sr Hi Inc. Fd (ARK) for income and it is, again, scheduled to pay another monthly dividend. Introgen (INGN) is in the portfolio awaiting news on final phase testing of the cancer treatment and has been bumping along an apparently firm support channelling in about a 50 cent range.
City Telecom HK (CTEL) is also behaving as it continues a consolidation begun in January. I am awaiting a breakout with this one.
Again, patience is the watchword. The cheaper stocks languish as the markets are unable to turn up as yet. Eventually they will and these cheapies can become the most exciting of all.
Have a great weekend and thank you for subscribing.
Bill
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