|Sterling Weekly for November 17th, 2008
The overall market as measured by the Dow Jones Industrial Average lost approximately 446.50 points, or approximately 5% last week to finish at 8,497.31 In the 1st full week since the Presidential election the overall market continued to see a high degree of volatility. The broad market continues to be under pressure with the high tech sectors looking the worst. I am continuing to look for the overall market to move lower. Our downside targets on the Dow Jones Industrial Average are currently 8,175.77 and then 7,762.34
There was a lot of talk last week on CNBC about the death of the Buy & Hold strategy. Well, the Buy & Hold strategy was never meant to be Buy & Forget. Buy & Hold means having a long term perspective on the investments in your portfolio, but it doesn't mean you can or should try to ignore economic cycles or fundamental changes in our economy such as new technology or a fundamental change in consumer preferences. All remember that yesterday's winners may very easily not be today or tomorrows winners. While it may very well be a good time to be buying shares of Wal-Mart, keep in mind that Sears, and K-mart (as well as many other companies) were both at one time the largest retailers in America, they both filed bankruptcy years after having reached that level. After you invest in a company through the purchase of the shares you still need to monitor the performance of the company and how its industry in fairing in the overall economy. But keep in mind that just because you have a longer term investment objective it doesn't mean you can't adjust your portfolio from time to time.
Calendars for the Week of November 17th, 2008
Lowes Co. 'LOW' announces earnings. Time N/A. Est. $0.28
||Target Corp. 'TGT' announces earnings before the open. Est. $0.49
||Home Depot 'HD' announces earnings. Time N/A. Est. $0.39
||BJ's Wholesale Club 'BJ' announces earnings before the open. Est. $0.46
||Barnes & Noble 'BKS' announces earnings before the open. Est. ($0.16)
||Dell, Inc. 'DELL' announces earnings after the close. Est. $0.32
||Ann Taylor Stores 'ANN' announces earnings before the open. Est. $0.01
full earnings calendar for this
week can be found (here)
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from Recent editions of the Prime
Close or Exit Price
|Transocean 'RIG' Short Sale
||Covered on the 28th
|Humana 'HUM' Short Sale
||Covered on the 28th.
DryShip 'DRYS' Short Sale
||Covered on the 13th
per share PROFIT is a theoretical
calculation based upon the opening
price the day the recommendation is
published and the intra day high (or
low for short sales) on the exit day.
The exit day is determined based upon
the application of our "Rules
for Trading", the implementation
of "stops" within our stated
policy, and may not reflect the complete
or full movement of the underlying
Dow Jones Industrial
Opinion: Closed @ 8,497.31Last Signal: Called Lower (again) with the close of 8,378.95
on October 24th. Current Expectations: The Dow should continue to move lower and test 8,175.77 and then 7,762.34 on a closing basis.
@ 873.29 Last Signal: Called Lower (again) with the close of 876.77
on October 24th. Current Expectations: The S&P 500 should continue to move lower and test 848.92 on a closing basis.
NASDAQ 100 (NDX)
Opinion: Closed @ 1,179.63 Last Signal: Called Lower (again) with the close of 1,202.27
on October 22nd. Current Expectations: The NDX should continue to move lower and test 1,169.78 on a closing basis.
Ten Year Treasury Index (TNX)
@ 3.748% Current Expectations: With the current market turmoil it is anyone's guess where interest rates are going. However, my guess is that short term debt instruments will be more sought after than longer term ones.
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