[Weekend Summary]
Dear Member:
As oil prices continue to soar, the markets took a real beating this week. No question the bears were in control. The Dow fell nearly 500 points for the week while the Nasdaq Composite lost nearly 90 and the S&P 500 around 40. From a technical standpoint, it looks like there may be more to come. The question is where will things turn? The Dow's next support as I see it is almost 600 points away near 10,700 while the S&P 500 is already at the important 1275 support both on the weekly and the daily charts. The next level down on the Nasdaq Composite is around 2250 so it has another 65 points to go to test that level. In short, I still see more bearishness than bullishness. In general, in my services, I have played things pretty close to the vest, closing a profitable trade in the $10 Trader, opening a new spread position in Option Trader as well as selling some options against existing positions to bring in some income, and generally keeping mostly to cash in Trend Trader.
I added no new trades this week and both my recent additions fell a bit. Burger King Holdings (BKC) came to rest at support, but is definitely on probation. JER Investors Trust (JRT) also dipped this week, but that dip, in part, at least, was the result of going ex-dividend on Thursday. Since I did own the stock at that time, I will receive a 30 cent a share dividend on 7/31 whether or not I still hold the position.
Evergreen Income Adv Fd (EAD) also dropped, but at my entry price continues to yield about 9.6% per year paid monthly.
Nothing new on Ceragon (CRNT).
Since the Dow has broken some serious support and looks like it may have a pretty good way to go before reaching the next level, the UltraShort ETF for the Dow is definitely on my screen for the beginning of the week.
Have a great weekend. I suggest patience because there are going to be a whole lot of buying opportunities when the market turns.
Bill
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