Please read carefully our disclaimers at the end of this newsletter. Weekly Status Report: Contents
Year-To-Date Performance
* An average of managed accounts, net after commissions and fees. Individual account results may vary. See also www.deencapital.com/perform.htm. For information on managed accounts, see www.deencapital.com/mgdaccts.htm. Market Stance: BULLISH (since October 31, 2005)The market averages were very nearly unchanged last week, but Deen Capital accounts posted a solid gain. We've been regularly outperforming the market since late October, and last week was no exception. I am concerned, however, that my three primary market indicators continue to weaken. The percentage of stocks trading above their 50-day moving average has been falling recently. It's still high at 69%, but it is stalled in that area, and I now rate this indicator neutral. (Neutral, yes, but just barely. It's right on the line between neutral and bullish, by my reckoning.) Also, my Performance-of-Recent-Stock-Picks Index is now bearish. Only my NASDAQ Timing Model remains bullish. Taken together, my three primary indicators are neutral. The big news last week was a steep drop in November new-home sales. It is debatable as to whether this is a positive or a negative for stocks. My own view, I think the minority view, is that it is a positive. As I've previously written in this space, real estate has been the investment of choice for some years now, but that is just recently starting to change. This change should benefit stocks. As expected returns from real estate come down, for the first time in years, stocks may start to compare favorably, or at least comparably, for investor dollars. In my view, there's a better than even chance that the rally which began in October is merely on hold and will resume within a week or two. But I am watching my indicators closely. Finally, permit me to take this opportunity to wish you and yours a happy and healthy holiday season. -KD, December 23, 2005
* Net buy prices shown are the total net purchase cost after commissions for all managed accounts divided by the total number of shares. Stocks Sold Over Past 13 Weeks
* Net buy (sell) prices shown are the total net purchase cost (proceeds) after commissions for all managed accounts divided by the total number of shares. The Gain(Loss) is therefore net after commissions. Welcome to The Deen's ListTM, an e-mail stock newsletter from Deen Capital Management, Inc. My intention is to inform you as quickly as is practical regarding my stock market moves. When I buy or sell a stock, first I take care of client accounts, then I buy/sell for my personal account(s), and then, third, I send out this newsletter. Your feedback is welcome. Send e-mail to deenslist@deencapital.com. To subscribe or unsubscribe, include the word "subscribe" or "unsubscribe" in the Subject line. This newsletter is free to managed account clients. For a limited time, it is also free to all interested parties. Your personal information, including your e-mail address, will be held in strict confidence by Deen Capital Management, Inc. We will not share it with or sell it to others. All stocks discussed in The Deen's ListTM involve a high degree of risk. It should not be assumed that any stock discussed in The Deen's ListTM or purchased by Deen Capital Management, Inc. will be profitable. Past performance is not necessarily indicative of future results. The information contained herein has been compiled from sources deemed to be reliable; however, we are not responsible for its accuracy or completeness.
Ken Deen Copyright © 2005 Deen Capital Management, Inc. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||