OUTPACEsys
Singular Views for Profitable Investing

 
28 July - 1 August 2008

by Paul DeCaro

Contents

Trends in Equities
Alternate Markets - Bonds - Commodities
Country-specific ETFs
Industry Sectors
Portfolio & Trades
Bottom Line

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PORTFOLIO AND TRADES - This week we closed a long position in PG, initiated on July 14th and closed on Thursday, aimed at following a countertrend up. You can view a description of this trade in this video.

Underlying Equity Symbol Description % Profit/Loss Time in trade
PG
PG HM
AUG08 65 Call
+76% 14 days

IN A NUTSHELL - Stocks closed the week very close to 0% price change. The bullish countertrend continued and gave us some good opportunities for short-term long trades. Equities indexes have been moving up in the last three weeks but are still below mid-term resistance, which keeps on hold any long-term trades.

Crude Oil continued in the strong correction that has now shaved away a good 20% to its price. Long-term support is getting close and might affect the course in the coming weeks.

Gold continued the retracement from an earlier attempt to go long and is back trading in a range. It remains in a bullish long-term posture.

LOOK AHEAD - Given the indecisive posture of the markets, next week we'll focus on short term trades. We'll keep on hold our long term positions.

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Dear Fellow Investor,

This is the latest of our reports providing status and trends of the major components of the financial markets, both in the US and internationally. We will review the major indexes and key sectors of the market. We will also report on Alternate Markets and on the performance of specific industries.

These reviews form the basis of the in-depth analyses that feed our analytical models, upon which we base our trading approach and drive our trade selection process.


In the interest of not wasting anybody's time, we keep these notes concise and to the point, while we strive to provide clear indications on the identified trends and very actionable suggestions.


We hope you will enjoy the following reviews of this week's events.

If you have any questions or suggestions, please feel free to e-mail us here!



28 July - 1 August 2008

Market Trends - Equities

Stocks are working a relatively slow recovery from an almost year-long decline. The week performance was close to nil, but the new short-term uptrend is confirmed.

Click here for the video version of this report.















The charts at the right show the
price history, in terms of relative performance, of the S&P500, the Dow Jones, and the Nasdaq 100 indexes.



























Individual weekly charts for the S&P, DJ and NASDAQ are on the right.

See below for comments on other market components.
3mo
Fig.1 - DJ Ind, NASDAQ100 and S&P500: 2 week comparative performance


ytd
Fig.2 - DJ Ind, NASDAQ100 and S&P500: YTD comparative performance




sp
Fig.3 - S&P500 - weekly chart


dj
Fig.4 - DowJones Industrial - weekly chart


nd
Fig.6 - NASDAQ 100 - weekly chart


Country-specific ETFs


All the international markets we follow are in negative territory YTD.


On the right is a chart showing the relative Year-to-Date performance of five of the country-specific ETF's that we chose to represent current round- the-world status.



ytd
Fig.7 - Country specific trend comparison: YTD



Market Trends
- Commodities

Crude Oil lost more than 20% from its recent peak and is now challenging long-term support.



Gold is back to a multi-month long trading range and below short-term resistance.





































Weekly charts for Oil and Gold  are on the right.
wk
Fig.8 - Crude Oil, Gold and Gov Bonds vs S&P500: 3 months

ytd
Fig.9 - Crude Oil, Gold and Gov Bonds vs S&P500: YTD


oil
Fig.10 - Crude Oil, weekly chart


gold
Fig.11 - Gold, weekly chart





Industry Sectors  - Best & Worst

This is the Year-to-Date performance of the ETFs we selected to represent Sector performance.



The Financials have recovered more than 15% from the recent bottom but are still the worst performing sector for the year.



Legend:
Materials Select Sector, XLB
Energy Select Sector, XLE
Financial Select Sector, XLF
Rydex Russell Top 50, XLG
Industrial Select Sector, XLI
Technology Select Sector, XLK
Consumer Staples Select, XLP
Utilities Select Sector, XLU
Health Care Select Sector, XLV
Consumer Discretionary, XLY




ytd
Fig.12 - Sector comparative performance: Year to Date




best trading

Bottom line
:
Our plan for 2008 is to continue following our proven approach and strategies to
  • achieve outstanding returns, and
  • manage a skillfully diversified portfolio
We will do that in the comfort of our safe money management techniques that ensure full control of occasional minor losses while allowing full realization of large profits.

As usual, the full details of our market analysis and real-time trade suggestions will be delivered to you via the
OUTPACEsys e-mail alert system.


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[Want to supercharge your trading skills, boost your profits
and limit risk?

Read about our proven approach to winning trades and
get high accuracy trade alerts at
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***

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