"The Nasdaq is now up more than 10% in one month as it approaches big, bad resistance of the 200 day moving average. If it does test that level, and I think there is a very good chance that it will, it’s time to lock in profits and get very conservative<\/strong> .. The easy money of this rally has been made, so any further spikes up from here will offer an opportunity to lock in some profit and\/or initiate a few short positions. If you’re not a shorter term trader it’s going to best to just lock in much of your profits and sit tight in cash for a few weeks."<\/strong><\/p>\n The Nasdaq did end up testing that 200 day moving average and actually moved above it for a brief time as volume continued to diminish. That was a good time to lock in some hard earned profits and\/or begin hedging your bets a bit. <\/p>\n In that report I also said that ".. 2350 is the new line in the sand for the Nasdaq. A close below this level with heavy volume would indicate significant weakness and put the Nasdaq back in danger of testing the lows of this correction." <\/p>\n Well, last Thursday that line in the sand was breached with heavy volume so we find ourselves in a position where the indices are likely to test the lows of this correction. <\/p>\n The first sign of potential trouble didn’t occur on Thursday though, it showed up in a high volume reversal on Tuesday. I sent the following note to my premium members that evening:<\/p>\n "Today was the first day of trading with significant volume in a few weeks and the technical action wasn’t pretty. I talk a lot about the significance of high volume reversals in the video presentations I do for you with individual stocks but the significance is just as great in the indices. The Dow nearly touched a gain of 250 in the morning before wiping away that entire gain and then some by the close as institutions used the rally to dump some positions. That kind of action typically leads to further deterioration ahead, so we’ll need to keep a close eye on how this market responds to today’s weakness in the days ahead. Another big distribution day or two could spell big trouble for this market as we move into a historically weak month for the market."<\/p>\n It’s important to be extremely cautious now with any bounces from here offering another chance to move more to cash and initiate short positions.<\/strong><\/p>\n ::: Model Portfolio :::<\/strong><\/p>\n ** This section will now appear as a separate report about<\/a> every other Wednesday. <\/p>\n The Self Investors Model Portolio wrapped up 2006 with a gain of 27.6%<\/strong>, 2007 with a gain of 30.2%<\/strong> and is more than 10% ahead of the S&P in a very difficult 2008. This is a REAL portfolio with position sizing and features annualized returns of 24%. <\/p>\n Would you like to receive buy and sell alerts in the Model Portfolio within minutes (NEW!<\/strong> now get them via instant messaging in near real time) of each transaction? You can receive these along with ALL of the tracking tools and video reports with the very popular Gold membership. Don’t delay, get started today and join me for many more highly profitable months here at SelfInvestors.com.<\/p>\n ::: Best\/Worst Performers :::<\/strong><\/p>\n – Top 10 Performing Industries For the Week –<\/p>\n 1. Banks – SE: 12.00% – Top 10 Worst Performing Industries For the Week –<\/p>\n 1. Silver: -16.40% – Top 5 Best Performing ETFs For the Week –<\/p>\n 1. SPDR Regional Banking (KRE) 5.70% – Worst 5 Performing ETF’s –<\/p>\n 1. Market Vectors Coal (KOL) -18.10% ::: Upcoming Economic Reports (9\/8\/2008- 9\/12\/2008) :::<\/strong><\/p>\n Monday: Consumer Credit ::: Earnings I’m Watching This Week :::<\/strong><\/p>\n Tuesday: Aerovironment (AVAV), ARCSIGHT (ARST)<\/p>\n Thursday: Lululemon (LULU)<\/p>\n","protected":false},"excerpt":{"rendered":" It’s been mighty quiet at the blog here for the past few weeks but more frequent posts will resume now! I’ve been dealing with some personal stuff and spent nearly two weeks over in Lake Chelan in central WA. I’m recharged and ready to go!.. as is this market. Unfortunately that direction appears to be … Continue reading Indices Poised to Test July Lows, Caution Urged<\/span> ![\"9608_nasdaq\"](\"http:\/\/selfinvestors.com\/tradingstocks\/wp-content\/uploads\/2008\/09\/9608_nasdaq_thumb.gif\")
<\/a><\/p>\n
2. Banks – Pacific: 7.30%
3. Banks – Mid Atlantic: 6.85%
4. Surety & Title Insurance: 6.70%
5. Major Airlines: 6.50%
6. Tobacco Products: 4.65%
7. Semiconductor – Memory Chips: 4.10%
8. Home Improvement Stores: 3.75%
9. Banks – Midwest: 3.60%
10. Specialty Retail: 3.25%<\/p>\n
2. Steel & Iron: -15.90%
3. Heavy Construction: -15.40%
4. Gold: -15.30%
5. Industrial Metals & Minerals: -14.50%
6. Copper: -14.00%
7. General Contractors: -13.95%
8. Farm & Construction Machinery: -13.50%
9. Communication Equipment: -13.30%
10. Printed Circuit Boards: -13.05%<\/p>\n
2. HLDRS Regional Banking (RKH) 3.40%
3. SPDR Retail (XRT) 2.70%
4. SPDR Financials (XLF) 1.65%
5. iShares Home Construction (ITB) 1.30%<\/p>\n
2. Market Vectors Steel (SLX) -15.20%
3. SPDR Metals & Mining (XME) -14.60%
4. Market Vectors Gold Miners (GDX) -13.90%
5. iShares Brazil (EWZ) -13.30%<\/p>\n
Tuesday: Pending Home Sales, Wholesale Inventories
Wednesday: Crude Inventories
Thursday: Export\/Import Prices, Initial Claims, Trade Balance, Treasury Budget
Friday: PPI, Retail Sales, Business Inventories<\/p>\n