...and the beat goes on

Yesterday, we experienced a tremendous beating of most of the markets and individual stocks. This morning, we expect that the downtrend to continue in a significant manner, at least for the early part of the trading day.

If the S&P 500 Index closes today below the 50 day moving average at 1087, then the downward momentum will continue with the next support level at 1023, that would represent an additional 6% drop in the index.

Should the index retreat reach near the 1050 level and bounce back in the next two weeks, then we can view the chart as having formed a reverse "head and shoulders pattern". In that case, it may be a good time to go bottom fishing for some bargains. These are the times when we position our funds for future profits.
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Results for "Stocks to Watch - July '10"

A bit late with the results but here they go:

For the part of the month of July, this was our watch list and outcome:


Stock Symbol-------7/11/10---------------7/31/10

NLY-----------------18.15-----------------17.40 (down 4.31%)
NVS-----------------49.55-----------------48.74 (down 1.66%)

The outcome was not good, our average loss for this period was 2.99% while the S&P 500 gained about 2.19% from 7/11/10 thru 7/31/10.
Back to the drawing board.
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