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 December 21, 2007)Today's (Friday's) big rally has all the earmarks of the real deal -- a signal event marking a change in the market's direction. The market gapped up at the open, continued to rise, and closed very near the high. The major indices all gained more than 1.5%, with the NASDAQ leading the way with a 1.9% gain. What clinches the deal, in my view, is volume, which was surprisingly heavy for any day, much less the Friday before Christmas. There were also plenty of good-looking stock breakouts today. The economy may slip into recession early next year, as credit market and real estate woes continue to mount. Yet bull markets are known for climbing a wall of worry, and, in the end, it is psychology which is the most powerful determinant of the market's direction. And psychology appears to have turned positive. My technical indicators do not quite support this view. They are improving, with two now neutral and one bearish (one week ago they were unanimously bearish), but that still counts as overall bearish. I'm turning bullish anyway on the strength of today's big move. My bullish stance, though, hinges on the continuing improvement of these indicators. I think there's a at least a fair chance they may go overall bullish sometime next week -- even though next week is only three and a half days long. 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: +0.0 BEARISH +3.9 NEUTRAL (2)
Market Internals: 26% BEARISH 38% NEUTRAL (3)
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Market's Overall Technical Rating: BEARISH BEARISH
Stocks:Cash ratio (average): 54:46 42:58
(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 21, 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. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||