[Weekend Summary]
Dear Member:
Volatilities were down a bit today, but have continued to be pretty wild which often signals market decline. Today the Nasdaq Composite and the S&P 500 reached up near the top of the consolidation channel that began this month. The Dow was up strongly today, but has not yet broken up through the down trend line though it is now bumping its head in that area. In short, there is not yet a signal that the bear has gone to hibernation even in spite of the Fed's yeoman efforts. That is not to say, however, that things aren't starting to look a little more positive for the bulls. As of Thursdays close, they are. Of course, some consideration must be given to the possibility that the markets moved higher today with short covering in anticipation of the long weekend. If the markets can steam up early next week the growling bear may be ready for a rest, even if temporarily so. I need to see a break above the recent channel for the Nasdaq and S & P and a break up through the down trend line to become a real believer.
I continued to lay low this week with Trend Trader trades as the market works things out. I have remained in the ProShares UltraShort QQQ ETF (QID) as the market whips up and down. The movement has been within a channel and as I indicated in the first paragraph, there has not been a bullish breakout so far. I'd rather have the protection of a QID in place then just turn bull right now.
Nothing much new to say about Ceragon (CRNT) or Evergreen Income Adv Fd (EAD). EAD did gap down Monday, in all probablity as the result of another dividend, but regained most of that drop by close today.
I am really watching closely now because I want to be able to start accumulating bullish positions when I perceive a turn in the market. My intention will be to tread cautiously at first to make sure I am not walking into a head fake, but I do believe we have to be closer to a bullish upturn.
Bill
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