OUTPACEsys


OUTPACEsys
Singular Views for Profitable Investing

 
25 April 2008

by Paul DeCaro

Contents
Trends
Sentiment
ETFs performance
Best/Worst Performing Industries
Portfolio & Trades
Bottom Line

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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. We will review the major indexes and key sectors of the market and report on the performance of specific industries and the trends in international markets. These are the data that feed the set of 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!



Portfolio & Trades
-
As previously reported, we have recently closed several successful positions. On Friday we opened a long position in QQQQ which closed at a nice little profit on its inception day.

Under- lying Equity

Option symbol

Description

% Profit/Loss

Days in trade

QQQQ

QQQGU

JUL08 47.0 Call

+5%

1


In the next period we will be favoring short-term bullish trades.


APRIL 21-25, 2008

Market Trends


This week gave a welcome confirmation to the recent recovery from the severe correction of the last two quarters. This is certainly heart worming news since, as we said in our previous reports, that "correction" has been very close to becoming a fully fledged recession-type bear market. We are still quite far from a true up-market configuration, however, so, as we hope that things continue this way, we will remain very careful in assessing the upcoming developments.

The charts at the right show the recent price h
istory of the S&P500, the Dow Jones, and the Nasdaq 100 indexes. The overall behavior is similar, although the absolute variations have quite different magnitude.

Our indicators show the markets being in a short term moderately bullish posture, although the long term trend is caught in a range and still very vulnerable to a downtrend.

In the next period we will favor short-term long trades.
Capital for long term opportunities remains in cash.

See below for comments on other market components.


sp
S&P500 - weekly chart


dj
DowJones Industrial - weekly chart


nd
NASDAQ 100 - weekly chart







BONDS - Long-term Treasuries as well as Investment grade Corporate bonds are trading in a range with a small bias to the downside.















CRUDE OIL - Oil seems to be unstoppable in its race upwards and is continuing the uptrend that started in early 2007 and was only briefly slowed down in the last quarter of '07 and beginning of '08. Now the run up has started again with a vengeance and, although nothing is irreversible in the markets, the trend up is still unchallenged. For now we remain long on oil (to ease our suffering at the pump...), although we wouldn't recommend starting any new long positions now.







GOLD is another story. After reaching  historical highs at the beginning of this year, the last several weeks have seen a pause in the fast and furious growth of gold. So, while the long term trend is still strongly positive, the short-term and intermediate term approach has to be
more cautious. Next week we will still be looking at short position for our short term trades.
lqd



oil
Crude oild still in a strogn uptrend



gld






ETF Performance

On the right and below are this week's best and worst performing overall ETFs (including all families), followed by the best and worst country-specific ETFs.


b
Best performing overall



Worst performing overall
w





And these are this week's best & worst Country-specific ETF's

bc


w








bw





bwc







Industries 
- Best 5 & Worst 5
of the week



industries





industry best worst




best trading



Portfolio & Trades
-
As previously reported, we have recently closed several successful positions that reached their profit goals. On Friday we opened a long position in QQQQ which closed at a nice little profit on its inception day.

Under- lying Equity

Option symbol

Description

% Profit/Loss

Days in trade

QQQQ

QQQGU

JUL08 47.0 Call

+5%

1


In the next period we will be favoring short-term bullish trades.



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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and limit risk?

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get high accuracy trade alerts at
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***

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