Monday, May 15, 2006

Watch list for week of 5-15-06

Over the past couple of weeks I've sold most of my underperforming positions. As a consequence, I'm sitting on more cash than I've had since late 2005 but I'm not probably not buying much next week based on what I've seen so far. All the stocks from my watch list last week have taken big hits except for PTMK. Thus, the breadth of stocks on my watch list has taken a turn for the worst. This is a big deal because it means that stocks that are trading near support prices are not being bought like they should be. The reason I track more stocks on my weekly watch list than I could possibly own is for this very reason.

A further warning sign that I consider to be particularly important is the $NASI (nasdaq summation index) breaking support on the daily and weekly chart.

So this week, I'll proceed with extreme caution. I'll settle only for the very best prices if I do decide to proceed with my campaign in PTMK, and I'll be quick to sell if support fails. I won't be shorting anything yet because the stocks I'm still long of are all still in aggressive uptrends, and the overall market trend on weekly charts is still up. If we do experience a rapid and extreme market crash in the next couple of weeks, my plan is to take profits on longs, and step aside so that I can be in a great position to be a buyer near the bottom. However, if the transition to a downtrend is slower and more obvious, then I will initiate some short positions. Regardless, the most likely event is that I will have to do nothing, sit in my long positions while the market continues its uptrend.

It goes without saying that the highlights from my market homework software this weekend is a very short list:

5 Comments:

At 9:02 AM, Anonymous Anonymous said...

Jon, I think you made a very intelligent post this week. The one thing that's keeping me from buying much of anything right now is the fact that the market has uncertainty in its mouth. Since the Fed has left the door open to the possibility of more rate hikes, it feels as if the markets really don't know which direction to go. And if there's one thing the market hates, it's uncertainty. I got a little burned at the end of last week so I'm mostly sitting on the sidelines and waiting like you said.

Dan

 
At 8:47 AM, Anonymous ed van der meulen said...

I am a pure mathematician. And look at all the leaves from this tree. Now all leaves from now. Now also from the past. And ask a biologist if she or he can find one leave the same.

Influences by the sun. the rain, the other leaves, the temperature, viruses, lightning. And those influences in each degree. Tpoo many influences to get a grip on. We are calling like the beginning Santa FE group a physical chaos.

We have to abstract first to get a grip on it. And other things I see as only a believe

The logic in the financial markets is low. We can look at it with hard and soft constraints. So it's always a risky tour.

Have a nice day

 
At 2:38 PM, Anonymous ed van der meulen said...

Jon and your applet of the TSP is now famous. It's also a separate open source project and we promote also a new ERA for the world population with world peace. A new kind of economics, a new personal realtionship, and much more.

I found a lot more forgotten scientist. Not only the once famous Santa Fe group, but many more and that leads to a new ERA.

And also that book what you have read will become famous.

 
At 3:00 PM, Blogger jontait said...

The problem with scientists is that they waste too much time asking other people for money. I found a better way.

 
At 5:35 PM, Anonymous ed van der meulen said...

Some scientists do. I send now for the new ERA debate posting to the big universities as well in your USA. NASA knows us. NOAA knows us. So our promoting runs well. And some scientists are surely listening. They know that we are on a brink of a great changes. Also in the sciences.

I have extended the list of scientists, philosophers and mathematicians like the early Santa Fe group. And they are telling all the same. The early Santa Fe group was right. And on basis of them we promote a new ERA. And in my own country we are far with it. With the next general elections we have reached it.

My Katrina paper was big hit as well. Many journalists have visited my country.

I know enough from economy and money. EWe will replace economs with econometrics. More reliable.

I have worked with calls and puts. But I am honest I have no time for it. I have already so many friends. Also email friends. I like to buy books. But I don't need much money.

It's just looking at international news.

 

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