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Please read carefully our disclaimers at the end of this newsletter. Weekly Status Report: Contents
Typical Client Performance
* An average of managed accounts, net after all commissions and fees. Click here for more performance data. Click here for information on managed accounts. Market Stance: BEARISH (since August 11, 2010) Deen Capital performance last week was on par with the S&P -- both slipped -0.6%. Year-to-date, we're now -1.9%, still outperforming the S&P's -3.3%. Persistently high unemployment, a very weak housing market, tepid economic growth, and fear of a double-dip recession continue to weigh on stocks. My indicators remain overall bearish. I continue to maintain a high-cash low-risk portfolio. At the same time, I must say that I do see technical hints of a possibly important market reversal. We had a solid rally on Friday on strong volume off of an important support level. I think there's a good chance this rally could spill over into next week. But how high will it take us? How long will it last? Friday morning, stocks were down, at or near a 7-week low, before rallying. Might that have been a significant bottom? I rather suspect not. Too little evidence at this time. Nevertheless, I did buy some SPY (S&P 500) on Friday. Remember, my goal is to outperform the S&P. I am constantly weighing our risk of underperforming if the market goes down versus our risk of underperforming if the market goes up. The latter risk increased significantly on Friday, in my opinion, and I view this buy as a small step in the direction of reducing that "risk". We're still 48% in cash, still less volatile than the S&P. That "risk" is reduced, but still present. My Three Primary Technical Indicators:
Prior week Now
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NASDAQ Timing Model (Ver.10r): BEARISH BEARISH (1)
Last signal: BEARISH on Aug 10, 2010
Performance of Recent Stock Picks: -3.6 BEARISH -1.4 BEARISH (2)
Market Internals: 49% BEARISH 52% NEUTRAL (3)
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Market's Overall Technical Rating: BEARISH BEARISH
Stocks:Cash ratio (average): 28:72 52:48
(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, Saturday, August 28, 2010
* Buy prices shown are net after commissions. Stocks Sold Over Past 13 Weeks
* Buy and sell prices shown are net after commissions. This means that the gains/losses shown are also net after transaction expenses. 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.
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