This page is under construction, the following commentaries are for the purpose of illustration only.

NO STRATEGY WORKS IN EVERY MARKET.  THE MARKET COMMENTARY ENDEAVORS TO IDENTIFY THOSE TRADING STRATEGIES THAT WILL PERFORM BEST UNDER THE UPCOMING EXPECTED MARKET CONDITIONS.

::Strategic Outlook for January 28, 2007
 
As indicated in the previous commentary, the market was oversold on a short-term basis and bounced 1.2%.  Under these conditions, BANDWIDTH BUY produced limited profits - 70 trades at approximately $.10 per share while TRENDSELL had a small loss.   The oversold measures have also bounced.  25% of stocks are above their 10-day moving averages, 30% are above their 20-day averages and 36% are above their 50-day moving averages.  If the bounce continues, FILL 10-20 will come into play  But we should still be watching those strategies identified in yesterday's conclusions that will become profitable if the downtrend continues.

::Strategic Outlook for January 27, 2007 
 
TREND SELL performed as expected.  We came into the day with 9 Short trades, liquidated 3 and added 3 new trades.  On the day, we had 9 trades with an average profit of $.80 per share.
We expect more of the same tomorrow with theTREND SELL strategy continuing to be profitable.

We measure how oversold the market is short-term, intermediate-term and longer-term by the percentage of stocks that are above their 10-day, 20-day and 50-day moving averages respectively.  The historical low in each of these categories is 15%.  On this basis, the market is oversold in the short-term (only 16% of stocks are above their 10-day moving average).

However, there is still significant room for downside movement on an intermediate and longer-term basis.  The number of stocks above their 20-day moving average is 25% and above their 50-day moving average the number is 37%.

Conclusion:  If the market continues to move in the direction of the October lows, which appears highly likely, the following strategies will come into play: FILL 20-50; FIFTY DOWN; and TREND SELL.

::Strategic Outlook for January 25, 2007  

The stock market has entered a trending phase where we can expect strategies such as TREND SELL to do well.  Many stocks are outpacing their Bollinger Bands on the downside e.g. T & EK.  Based on information derived from the SPECTRUM II model (neutraltrader.com), we expect the market decline to continue to the vicinity of the October lows.