[Weekend Summary]
Dear Member:
The heights were reached Monday for each of the major indices. Since then coming into this holiday weekend, it has been mostly downhill with the Dow, Nasdaq Composite, and S&P 500 each breaking down through the uptrend line that began in March. The now almost nonsensical continuation of the speculative price of crude oil seems to be one of the major impediments to forward movement of the stock market. Though some have suggested that crude oil is now in a "tulip craze" type bubble, but so far the climb continues. In my view this was not a week to jump into bullish plays, particularly with the three day weekend ahead.
In light of all the above, I did not rush into any new positions. I should note that I completed a year in my Evergreen Adv Inc Fd (EAD) and realized a 9.5% return on my original investment in the form of the regular dividends.
Banco Bradesco SA (BBD) fell back to a price support and so far has held. Since this is a Brazilian bank, I am a little more comfortable at the moment than with many home-grown equities in the face of overall market behavior.
Ceragon Networks (CRNT) fell back to the 50 day moving average and still is on the losing side, but offers the possibility of selling covered calls to reduce the downside.
Once again, the caution flag is out. It looks to me as though we still could see significant downside, perhaps to 12,000 or even 11,750 on the Dow. First signigicant downside level on the S&P looks to be about 50 points away and the Nasdaq has its' next relatively important support down around 2350, some 90+ points away. Overall, I continue to try to pick very carefully.
Have a wonderful Memorial Day and weekend.
Bill
|
