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 November 8, 2006)The market remains in rally mode, posting solid gains last week. Deen Capital accounts also posted solid gains, and outperformed the Dow and the S&P. A number of developments last week have positive implications for stocks. New inflation data reported last week (both PPI and CPI) was surprisingly tame. This helped greatly to ease recent inflation fears. October housing starts tumbled 14.6%. It has been my thesis for some time now that weakness in housing is good for stocks because more and more investment capital is fleeing real estate and seeking the better returns now available in stocks. This is a secular shift from the first half of this decade, when real estate offered far better returns. Also, we had a stunning IPO last week, as the NYMEX (New York Mercantile Exchange) went public and soared 125% on its first day of trading. We haven't seen a first-day spike like this since 2000. This tells me that there are plenty of buyers out there. Most importantly, as far as I'm concerned, my three technical indicators are unanimously bullish. The market indices are at multi-year (in some cases all-time) highs, and I see no sign of a top here. I think further gains are likely as 2006 heads into the home stretch. I will continue to exploit this healthy market until I perceive early signs of a top. My Three Primary Technical Indicators:
Prior week Now
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NASDAQ Timing Model (Ver.10q): BULLISH BULLISH (1)
Last signal: BULLISH on Nov 8, 2006
Performance of Recent Stock Picks: +6.4 BULLISH +8.1 BULLISH (2)
Market Internals: 71% BEARISH 77% BULLISH (3)
Overall Rating: BULLISH BULLISH
Stocks:Cash ratio (Ken's IRA): 57:43 65:35
(1) A proprietary computer model based on technical analysis of the NASDAQ Composite. Last signal: BULLISH on Jul 28, 2006. (2) This number (from -10 to +10) is based on the performance of ALL my stock picks (I actually buy only some of these). A positive number means my stock picks are generally rising; a negative number means they are generally falling. Even so, I consider a reading below +3.1 to be bearish. I require a reading of +5.6 or better to call this indicator bullish. (3) This is the percentage of stocks ($8 and up) which are trading above their 50-day moving average. The rating of this percentage (bullish, bearish or neutral) is based on which way it's been moving recently -- up, down or sideways. -KD, November 18, 2006
* 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. The Deen's List Copyright © 2006 Deen Capital Management, Inc. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||