[Weekend Summary]
Dear Member:
This past week continued a bullish move in what has essentially been a bearish market since last October. This week showed some encouraging signs for the bulls in that while volatilities were down, the major indexes cleared some important hurdles. The S&P 500 broke above the resistance around 1400 and above a downtrend line though the move is tempered by somewhat lesser volume than I would like to see to confirm bullishness. The Dow also made a relatively strong move but on a little better volume which should be a little more encouraging to bulls. The Dow has been range bound between about 12,500 and 13,000 for the past month and continues to trade within those parameters. I believe a break in either direction could be significant. The Nasdaq Composite finally cracked the 2500 level for the first time since the beginning of the year, but, again, volume was a little soft.
As you can probably tell from the first paragraph, I am seeing more bullishness and am closer to being convinced that the bull could really be on the move again. However, the move up is less than completely convincing because of the modest volume accompanying the move. For that reason, I am still trying to be very particular in my selection of stock.
I did enter a position in one of the larger Brazilian bank stocks today when I bought shares of Banco Bradesco SA (BBD) for $23.25. The fact that Standard & Poor's increased its rating on Brazilian companies to investment grade assisted my decision.
Ceragon Networks (CRNT), though still disappointing overall, had another good week. It is nearing a little resistance and if it can break through, could really be back on the road.
Evergreen Inc Adv Fd (EAD) was down a nickel this week, but continues its steady stream of income as it was designed to do in my portfolio initially.
Have a great weekend.
Bill
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