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 December 14, 2007)Three developments this past week lead me to be quite cautious at this juncture, even downright bearish: 1. Technical: The Fed cut interest rates, but the market reacted violently to the downside. That was Tuesday afternoon. The market attempted to recover on Wednesday and Thursday, but those attempts failed, and the market closed today (Friday) at its lowest level of the week. 2. Also today, the Labor Department released a producer price index that was hotter than expected. This is inflationary. Inflation is enemy #1 for stocks -- all the more so in the context of a dangerously slowing economy! 3. And, last but definitely not least, my technical indicators are now unanimously bearish. On the bright side, we (managed accounts) did outperform the market last week. The S&P slipped 2.4%, versus a 2.0% drop for the average Deen Capital account. Plus, we're still showing a gain for the month -- the same cannot be said for the major market averages! Since 2005, outperforming the S&P 500 has become my mantra. When we outperform, I'm happy, even if we lost money. We lost less than the market last week, and that's what I care about. I'm achieving my goal. We're outperforming for the week, the month, the quarter, the year, you name it. 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: +9.2 BULLISH +0.0 BEARISH (2)
Market Internals: 42% NEUTRAL 26% BEARISH (3)
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Market's Overall Technical Rating: NEUTRAL BEARISH
Stocks:Cash ratio (average): 91:9 54:46
(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, December 14, 2007
* Net buy prices include commissions. 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. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||