*Blue Plate Specials* Portfolio – 9/22/10

Market Notes
It doesn’t come as much of a surprise that some profit-taking was in order but is that what today’s slump was or perhaps the beginning of another major downturn? The market internals are pointing to more downside which is pretty normal in an oversold environment.

Mildly disturbing is the fact that the DTX and the Nasdaq took the sell-off much harder than the other averages. It is the DTX that is a leading market indicator and most market economists feel that a rally isn’t confirmed unless there is leadership in the tech sector (the Nasdaq is a tech-heavy index). We’ll find out soon if this is just a normal market respite or the start of a downward spiral.

New Long Portfolio
The speculative stocks looked particularly appealing today so I bought them all. In bull markets, these small stocks do great but in watch out if the market does an about-face! We’ll see if these plays pan out.

Today’s selections come from the following *Blue Plate Specials* lists: Breaking out to new highs (5), Breaking out (1), and Speculative Leaders (4).


Today’s portfolio close-out
The 9/7 portfolio was cashed out for a modest gain.


Further Actions
Tomorrow the 9/8 portfolio will be exited. We are also watching HOOK in the 9/13 portfolio and URRE in the 9/21 portfolio. Smaller, more volatile stocks require a bit more wiggle room in terms of determining the appropriate stop/loss but if either moves down further, they will be closed out.

[See 4/21/10 blog for further details on how these portfolios are constructed.]

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