Weekend Update and Watch List (10-22-2006)...

Two posts in one this Sunday morning. First, my commentary on the SPY is given, as short as it is. The market is just amazing right now. Still way overbought, still rising, but I am still calling for a minor retracement, now to $135.25 although I'd really like to see $131.00, just to shake out the mo-mo players. I did notice a volume pattern over the last 6 trading days starting with a high volume price decline followed by decreasing lower volume price increases. If the pattern follows through, Monday should be a down day on high volume (distribution days? maybe). Other than that, the chart is beautiful in both 3 month and 3 year timeframes. What a great time to be in the market!

My notes:

And for a Monday morning watch list: HD, KSE, BBX, and UHS. KSE is an interesting play as it is a takeover play that is below the buy price, I would likely not trade it.

A note: I was wondering why my current trades are so slow to move, ie small volatility. I believe it is because in July, when had good trades that boomed, the market was rising, but coming off a bottom. Whereas in October, the market is still rising, but may be tiring. I guess the VIX supports the volatility arguement. I don't know. It is just frustrating to have good winners this month, but not in the 3-5% range, now in the 1-2.5% range. Money is still money, I guess.

I did sell my MNT position as it twice dipped below my initial stop loss. The first time I acted subjectively and did not sell--never again. On Friday it did the same thing and I sold. Of course, the stock popped due to good news, but I am happy to be out. Back to the land of objectivity.

MNT: -$1.71 or -1.14%

For now,
Masterjaz out