Market Notes
Dr. Kris’ charting service went down on Friday much to my extreme dismay (a small understatement). I didn’t think I could put out a *Blue Plate Special* but about six hours later I was able to cobble together an abbreviated version. Today (Sunday), I’m apoplectic with ecstasy to find that my charting service is now up and running at full capacity enabling me to put out a *Blue Plate Specials* portfolio.
Market-wise, Friday closed on a positive note with most of the major averages closing near their intra-day highs and the VIX closing at its intraday low (and also near its recent low). I do believe the market is poised to move higher but I have two concerns. First and foremost, the major averages need to push through the tops of their recent trading range—and they’re close to doing so. Of less importance is that mom, pop, and Uncle Fred (aka the “retail investor”) are still not participating in this market as volume is still on the light side.
Some feel that when the retail investor finally makes a market commitment is exactly the time to head for the exit and that could well be the case here. Not to worry, though. Considering how badly retirement accounts have gotten beaten up in the last ten years, I think you won’t see mom and dad breaking their piggy banks any time soon. But if they don’t eventually show up, the rally will run out of fuel (buyers) marking the end of this herky-jerky post-recessionary party.
New Long Portfolio
Since I was unable to select my candidates during market hours, the following ten long positions are initiated at Friday’s closing price. Portfolio selections come from the following *Blue Plate Specials* lists: Breaking out to new highs (5), Breaking out to new highs on Lower Volume(1), Low-Priced Leaders (2), Speculative Leaders (1), and Darlings of the Day (1).
Today’s portfolio close-out
The 10/7 portfolio was exited on Friday for a 3.7% loss. There was nothing we could have done about the drop in Alkermes (ALKS) as it was the subject of headline risk (the FDA needs more info on one of its jointly-developed drugs), and I’m glad I held onto it because it has recovered some. But I could have done something about the drop in Renesola (SOL) when it formed a perfect topping tail on 10/14. That was my cue to book profits and I don’t know why I ignored it…Perhaps I forgot to check it which, as you can see, can be detrimental to portfolio health. My bad.
The 10/08 portfolio will be closed out Monday.
*Important FYI*
Dr. Kris began these portfolios to illustrate how the stocks given in the daily *Blue Plate Specials*can be used to create or enhance your own stock portfolio. This was meant as a short-term exercise only and frankly Dr. Kris is looking forward to doing other things besides spending several hours a day managing portfolios. In particular, this website will shortly have an entirely new, streamlined look and a companion website focused mainly on investing strategies will be also be unveiled. I’m very excited about this and so I’ve decided that October 29 will be the last *Blue Plate Specials* portfolio.
[See 4/21/10 blog for further details on how these portfolios are constructed.]