*Blue Plate Specials* Portfolio – 8/31/10

Market Notes
Some sort of unintended program trading routine must have kicked in 15 minutes before the market closed today because that’s when the major averages gapped up only to be followed several minutes later by a fall to previous rally levels. It looks like the junior traders aren’t up on the latest software revisions.

The good news is that volatility seems to be working its way out of the market. The bad news is that it’s not affecting the major averages—they’re still clinging to support levels. One ray of sunshine in the Bull sky is that the Dow transports are moving up compared to its sister (brother?) indices, and as we all know, the Transport index is considered to be a leading market indicator.

Today’s new portfolio
Another short portfolio was entered using stocks selected from today’s New Lows list featured on the *Blue Plate Specials*. The position size is adjusted according to currently total fund holdings which is down from inception. (Initial position size was $1000.)

Capture

A quick note: I did not cover ADY today as it hovered around the $8 mark until what must have been one second before the close where it closed at $8.15. I’m not sure if that’s a spurious trade but if it’s hanging out at that level tomorrow, I will definitely cover it.

[Construction rules for these portfolios are given in the 4/21/10 blog.]

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