{"id":1070,"date":"2008-12-14T14:12:52","date_gmt":"2008-12-14T19:12:52","guid":{"rendered":"http:\/\/selfinvestors.com\/tradingstocks\/weeklyafter-stock-market-review-archives\/madoff-ponzi-failed-auto-bailout-not-enough-to-spook-market\/"},"modified":"2018-08-12T01:37:30","modified_gmt":"2018-08-12T06:37:30","slug":"madoff-ponzi-failed-auto-bailout-not-enough-to-spook-market","status":"publish","type":"post","link":"https:\/\/selfinvestors.com\/tradingstocks\/weeklyafter-stock-market-review-archives\/madoff-ponzi-failed-auto-bailout-not-enough-to-spook-market\/","title":{"rendered":"Madoff Ponzi, Failed Auto Bailout Not Enough To Spook Market"},"content":{"rendered":"

Last week I discussed the resiliency of the market and the increasing ability to hold up or even rally in the face of bad news.\u00a0 That resiliency was on display again Friday morning as\u00a0 the indices sold off ahead of the open on news the Senate failed to pass the auto bailout and more details surrounding the Bernard Madoff 50 billion dollar ponzi scheme, but began rallying almost immediately and closed with a decent gain.\u00a0 Traders were probably pricing in to some degree that a short term resolution will come from the White House with a longer term plan implemented once the Obama administration takes control of the ship.\u00a0 My feeling is that once some kind of plan is officially announced, we’ll get a decent move up but just as we’ve seen from other government intervention, the rally will be fairly short lived as reality sinks in.\u00a0 <\/p>\n

It’s been a tremendously tricky market to trade all year, particularly in the last few months.\u00a0 This market moves fast so you have to be quick.\u00a0 Ahead of the employment number last week, I was increasingly bullish, moving the Self Investors Model Portfolio to about a 40% net long bias.\u00a0 However, it didn’t take long for the indices to touch major resistance around the 50 day moving averages and move into overbought territory.\u00a0 While the character of this market has improved significantly, there is much more risk on the long side up here now so I’ve quickly moved the portfolio back into more of a neutral position as the market negotiates tough resistance levels.\u00a0<\/p>\n

Here’s a look at the daily chart of the Nasdaq.\u00a0 You can see a series of higher lows off that Nov low which is bullish, but we also face tough resistance around the 1575 – 1600 level where an intermediate downtrend and the 50 day moving average (in blue) converge.\u00a0 Next week, the Nasdaq will get closer and closer to the tipping point of that wedge formation, so I believe a major move is coming.\u00a0 In what direction is anyone’s guess at this point.\u00a0 Wait for the market to reveal its direction.\u00a0 If we break down below the wedge, we’re likely headed for a decent pull back off overbought levels (we haven’t been this overbought since the beginning of November).\u00a0 If we break out big from the wedge and above the 50 day moving average (it has to be a big break with heavy volume), then we’re likely headed for a test of the next resistance level around 1800.\u00a0<\/p>\n

\"121308_naz\"<\/a>\u00a0<\/p>\n

::: Model Portfolio :::<\/strong><\/p>\n

** This section will now appear as a separate report about<\/a> every other Wednesday.\u00a0<\/p>\n

The Self Investors Model Portfolio wrapped up 2006 with a gain of 27.6%<\/strong>, 2007 with a gain of 30.2%<\/strong> and is nearly 35% ahead of the S&P in a very difficult 2008<\/strong>.\u00a0 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?\u00a0 You can receive these along with ALL of the tracking tools and video reports with the very popular Gold membership.\u00a0 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. Silver: 26.35%
\n2. Aluminum: 25.35%
\n3. Copper: 24.95%
\n5. Nonmetallic Mineral Mining: 24.60%
\n6. Gold: 22.10%
\n7. Steel & Iron:\u00a0 21.70%
\n8. Industrial Metals & Minerals: 20.55%
\n9. Oil & Gas Drilling & Exploration: 17.90%
\n10. Metal Fabrication: 16.45%<\/p>\n

– Top 10 Worst Performing Industries For the Week –<\/p>\n

1. Apparel Clothing: -11.55%
\n2. Property Management\/Development: -9.70%
\n3. Processing Systems & Products: -9.20%
\n4. Banks – SE: -9.15%
\n5. Banks – NE: -8.70%
\n6. Banks – Midwest: -8.50%
\n7. Banks – SW: -8.10%
\n8. Air Delivery & Freight Service: -8.05%
\n9. Banks – Pacific: -7.90%
\n10. Recreational Goods: -7.80%<\/p>\n

– Top 5 Best Performing ETFs For the Week –<\/p>\n

1. Asa Gold (ASA) 24.46%\u00a0
\n2. Market Vectors Gold Miners (GDX) 23.40%
\n3. Market Vectors Steel (SLX) 23.35%\u00a0
\n4. SPDR Metals & Mining (XME) 22.35%
\n5. Market Vectors Coal (KOL) 20.65%<\/p>\n

– Worst 5 Performing ETF’s –<\/p>\n

1. HLDRS Regional Bank (RKH) -9.00%
\n2. SPDR Regional Banking (KRE) -5.70%
\n3. iShares Transportation (IYT) -5.50%
\n4. PowerShares Dynamic Banking (PJB) -5.40%
\n5. SPDR Financials (XLF) -5.30%<\/p>\n

::: Upcoming Economic Reports (12\/15\/2008- 12\/19\/2008) :::<\/strong><\/p>\n

Monday:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Capacity Utilization, Industrial Production\u00a0
\nTuesday:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Fed Rate Decision, CPI, Building Permits, Housing Starts
\nWednesday:\u00a0 Crude Inventories
\nThursday:\u00a0\u00a0\u00a0\u00a0\u00a0 Initial Claims, Leading Indicators, Philly Fed
\nFriday:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 None<\/p>\n

::: Earnings I’m Watching This Week :::<\/strong><\/p>\n

Monday:\u00a0 Titan Machinery (TITN),<\/p>\n

Tuesday: Adobe Systems (ADBE), Best Buy (BBY), Factet Research (FDS), Goldman Sachs (GS)<\/p>\n

Wednesday: Morgan Stanley (MS)<\/p>\n

Thursday: Accenture (ACN), China Medical Technologies (CMED), Fed EX (FDX), Lennar Corp (LEN), Oracle (ORCL), Research In Motion (RIMM)<\/p>\n","protected":false},"excerpt":{"rendered":"

Last week I discussed the resiliency of the market and the increasing ability to hold up or even rally in the face of bad news.\u00a0 That resiliency was on display again Friday morning as\u00a0 the indices sold off ahead of the open on news the Senate failed to pass the auto bailout and more details … Continue reading Madoff Ponzi, Failed Auto Bailout Not Enough To Spook Market<\/span> →<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"class_list":["post-1070","post","type-post","status-publish","format-standard","hentry","category-weeklyafter-stock-market-review-archives"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/selfinvestors.com\/tradingstocks\/wp-json\/wp\/v2\/posts\/1070","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/selfinvestors.com\/tradingstocks\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/selfinvestors.com\/tradingstocks\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/selfinvestors.com\/tradingstocks\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/selfinvestors.com\/tradingstocks\/wp-json\/wp\/v2\/comments?post=1070"}],"version-history":[{"count":0,"href":"https:\/\/selfinvestors.com\/tradingstocks\/wp-json\/wp\/v2\/posts\/1070\/revisions"}],"wp:attachment":[{"href":"https:\/\/selfinvestors.com\/tradingstocks\/wp-json\/wp\/v2\/media?parent=1070"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/selfinvestors.com\/tradingstocks\/wp-json\/wp\/v2\/categories?post=1070"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/selfinvestors.com\/tradingstocks\/wp-json\/wp\/v2\/tags?post=1070"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}