WhaT'S AHEAD
3rd Quarter Preview
Financial markets have been in a steep slide since April 26th and based on recent poor economic news this correction may continue for sometime.
Our grey side trading has been muted for most of the second quarter but we may begin to start scaling into some high dividend paying stocks to begin the quarter while at the same time establishing some long term position trades looking out to the end of the year.
The first three stocks on our radar are Altria Group, MO, PEPCO Holdings, POM, and Verizon Communications, VZ. more
TraDE REVIEW
Trading Channels
Our automated strategies (Black versions) had a rough go in May but got right back on track in June as volatility calmed and trading ranges smoothed out.
We will continue to add to our new model portfolios and suspect that the financial markets in general may have more downside pressure into the earnings reporting season but may see some relief near the end of the summer as more economic clarity appears.
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TREND WATCH
Market at a crossroads
Since most major market up-trends were destroyed last week, this is a good opportunity to consider portfolio adjustments to take advantage of the increased volatility as the markets struggle to find their way.
At this time the trend is somewhat flat near term but fragile going back 3 weeks.
Nasdaq recovery seems to be leading the general markets so pay close to this index for the next few weeks as this group, commodities' prices and the US Dollar will continue to be the most important leading indicators.
COMMENTARY
Economic Perfect Storm
In all my years in this business, never have I witnessed what took place May 6th, 2010 and it begs the question, What really happened? Were we attacked through the various electronic exchanges that exist today?
Since we still haven't received any answers and given the fact we have been attacked lately in a traditional terrorist sense, this has to be considered since it is unlikely that true sellers were panicking out of their positions to cause a 1000 point selloff in 5 minutes.
I also have to be skeptical more