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[Weekend Summary]

Dear Member:

As we approach the "summer doldrums" the Dow and S&P 500 are dealing with a support/resistance line first begun last November and the Nasdaq Composite has been unable to get back above the important 2500 mark since the beginning of January. Meanwhile, volatility has climbed modestly this week. As I have written before, patience is critical at times like these and the rewards are evidenced by a $10 Trader trade I closed this week where I was able to achieve a 40% return in just a little over a month. The key, I believe, is to continue the hunt for good candidates with good entries.

Alesco Financial (AFN), as noted above, closed with an excellent result. I suspect I will be re-entering this one when I find what I believe to be a good entry.

I entered a position in Wonder Auto Technology (WATG) on Tuesday and have enjoyed a strong move since then. I sent an alert this morning about setting a stop at $8.70 and although the stock did hit that price, I had not placed the stop at that time. The stock closed at $8.79, up 74 cents since the Tuesday entry.

City Telecom HK (CTEL) and Introgen (INGN) were essentially flat for the week. INGN remains a play on ultimate final phase cancer treatment test results.

Blackrock Sr Hi Inc (ARK) continues to do the job as a regular income producer. It, too, stayed essentially flat for the week.

The Alesco (AFN) and Wonder Auto (WATG) plays demonstrate the importance of patience in this trading game. Those who enter trades just to trade are doomed to ultimate failure in my opinion. In markets like we have seen over the last several months, I believe it is critical to be patient and carefully pick your spots.

Thanks to those of you who have bought "Trade Your Way to Wealth" and thanks for the many positive comments. I hope you all have enjoyed the book.

Have a great weekend.

Bill

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