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Sterling Weekly for September 9th, 2003

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As part of an ongoing series of articles I have been writing about 11 "Rules for Trading" that I have developed. In last week's edition of the Sterling Weekly I covered the Fourth Rule for Trading, "Do not be afraid to sell at an early profit and have the opportunity to buy back at a lower price." In this week's newsletter I would like to discuss my Fifth Rule for Trading, "If a stock or option does not move as you expect within a few days then look to exit the position."

The logic and thinking behind the Fifth Rule for Trading acknowledges the fact that even the best of us can make mistakes or misjudge things from time to time. This rule is particularly important when your focus is short term trading. An example of this would be if you entered a position you expected to move a couple of points per share within a 1-2 days, and after 3-4 days the stock has not moved. Then the appropriate action would be to re-examine your reasoning for entering the position. This may involve taking a second look at the financial's, news relating to the company or industry, or re-examining the charts of the stock. You may discover that you missed something and want to exit the position, or you may decide you were correct and want to continue to hold the position. The important thing is to be in the habit of monitoring your positions and keeping a watch on them until you can move a stop up to lock in your profits (The Third Rule) as we discussed in the August 12th edition of the Sterling Weekly.

Economic Calendar for the week of September 9th, 2003.
DATE Est. Time Release For Actual Consensus Prior Revised From
Sep. 09 10:00am Wholesale Inv. Jul   0.2% 0.1% 0.0%  
Sep 11 8:30am Initial Claims 9/06   395k 400k 413k  
Sep 11 8:30am Export Prices Aug.   N/A N/A -0.1%  
Sep 11 8:30am Import Prices Aug   N/A N/A 0.1%  
Sep 11 8:30am Trade Balance Jul   ($40.0B) ($40.5B) ($39.5B)  
Sep 12 8:30am PPI Aug   0.4% 0.3% 0.1%  
Sep 12 8:30am Core PPI Aug  


0.1% 0.2%  
Sep 12 8:30am Retail Sales Aug   1.8% 1.5% 1.4%  
Sep 12 8:30am Retail Sales - ex Auto Aug   0.8% 0.8% 0.8%  
Sep 12 9:45am Mich. Sentiment Sep   91.0 90.4 893.3  

Prime Update:

Sterling Investment Services is an investment research and money management firm publishing the Prime Stock Newsletter. The Prime Stock Newsletter is a daily comprehensive newsletter that is useful for investors and traders alike. Whether you are looking for short term trading opportunities ranging from day trading to a couple of weeks or if you looking to acquire a long term portfolio at smart entry points. Subscriptions a $30/month. a 3 DAY TRAIL SUBSCRIPTION IS ONLY $4.95 (more).

Highlights from Recent editions of the Prime Stock Newsletter
Recommendation Date Entry Point Recent Close or Exit Price Profit* Note
Sandisk Corp. 'SNDK' Sep 4, 03 $61.21/share $63.95 $2.74  
Neflix, Inc. 'NFLX' Aug 21st $28.25 $34.72 $6.47  
Yahoo, Inc. 'YHOO' Sep 3, 03 $34.00 $35.54 $1.54  
* The 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 Dow Jones Industrial Average:

Today's Opinion: Closed @ 9,586.29 Current Expectations: Called higher on August 29th with the close of 9,374.21 I am now expecting the Dow to move higher again and test 9,660.60 our target level first published in the Sterling Weekly for August 18th.

The S&P 500:

Today's Opinion: Closed @ 1,031.64 Current Expections: Called higher with the close of 996.73 on August 26th. The S&P 500 should move higher and test 1,057.86

The NASDAQ 100 (NDX)

Current Opinion: Closed @ 1,386.73 Current Expectations: Called higher on August 9th with a close of 1,223.14. The NDX surpassed our target of 1,385.01 with yesterday's close of $1,386.73 The NDX should continue to move higher and test 1,555.11 and then 1,846.96 on a closing basis.

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Disclaimer: The Sterling Investments series of newsletters is produced by Sterling Investment Services, Inc. All information used in the production has been obtained from sources believed to be reliable and accurate. Sterling Investment Services does not warrant or assume any liability for inaccuracy of the information used to produce our publications. To receive further information on these services please visit our web page at: If you would like to contact us our fax # is (404)-816-8830 Email address is: Sterling Investment Services may hold positions in the securities recommended or may be providing consulting services to the companies mentioned within this report.
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