[Weekend Summary]
Dear Member:
Strong upward price movement in the Dow, S&P 500, and Nasdaq though not supported by volume. Interestingly on this options expiration Friday, all the indices came to rest close to important levels. The Dow and S&P are dealing with a multiple top resistance. The Dow managed a close just above and the S&P just below the respective levels. After a gap up, the Nasdaq composite came to rest just above the important 2400 level and managed to scratch above the 100 day exponential moving average. Mostly, the week looked bullish, BUT these resistances still need to be dealt with before I am willing to claim the bull is back. From the bullish standpoint, I would also liked to have seen better volume, but, on the other hand, volatilities were sinking and that is generally a bullish indicator.
Evergreen Income Adv Fd (EAD) continues as a good income producer and had another fairly strong week in terms of price appreciation. It has broken a down trending line and appears that it may have formed a large reverse head and shoulders, both of which are relatively bullish signs.
I added a position today in US Shipping Partners LP (USS)as it moves up a trend line begun in early March. I like the 16%+ annual dividend this Master Limited Partnership has been paying.
Ceragon (CRNT) could not break above the $10 resistance and remains only a candidate against which to sell covered calls or a tax loss.
We could be ready for a bullish move in these markets, but those all important resistances need to be broken. The Dow did get through, but on an options' expiration Friday so it is not quite as convincing for me.
Thanks for subscribing, and thanks to those of you who have bought "Trade Your Way to Wealth."
Bill
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