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: BEARISH (since November 1, 2007)We may have seen an important market top on Wednesday. We had a big selloff on Thursday, the first of November, and this bodes ill for the market. My indicators are now decidedly bearish. I don't know if the market is going up or down from here, I only know that we are in a danger zone. Accordingly, I turned bearish and raised our cash levels dramatically on Thursday. My primary focus, since 2005, is to outperform the S&P through both up markets and down. With that in mind, I am pleased to report that Deen Capital accounts fell 0.5% on average, much less than the S&P's loss of 1.7%. This is particularly gratifying during a bullish-to-bearish transition week, because that is when we are most vulnerable. I view this aspect of my work -- losing less than the S&P during down markets -- as the single most important key to my success in recent years. Unlike most corrections (if that's what this is), however, in this one, at least so far, growth stocks and tech stocks are holding up better than the S&P. This is a good sign, and certainly helped our accounts. I have a hunch, based on this, that this correction may be minor and short-lived, at least for growth and tech stocks. But, as usual, I'll let my technical indicators be my guide. If my hunch is right, they'll improve soon enough. Meanwhile, I may still do some buying, but only within the context of a low-risk high-cash posture. My Three Primary Technical Indicators:
Prior week Now
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NASDAQ Timing Model (Ver.10q): BEARISH BEARISH (1)
Last signal: BEARISH on Nov 1, 2007
Performance of Recent Stock Picks: +5.8 BULLISH +4.8 NEUTRAL (2)
Market Internals: 60% NEUTRAL 47% BEARISH (3)
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Market's Overall Technical Rating: NEUTRAL BEARISH
Stocks:Cash ratio (average): 97:3 53:47
(1) A proprietary computer model based on technical analysis of the NASDAQ Composite. (2) This number (from -10 to +10) is based on the performance of ALL my recent stock picks (I actually buy only some of these). A positive number means my recent 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 2, 2007
* 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 © 2007 Deen Capital Management, Inc. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||