Friday, December 23, 2011

Subscriber Alert & Merry Xmas

The indices (DJIA 12294, S&P 1265) had another good day, both closing within their intermediate term trading range. The S&P now confirms the break above 1230 and its 50 day moving average and puts it back in sync with the DJIA. In addition, (1) both of the Averages are now above their 200 moving average, though our time and distance discipline now holds for the S&P and (2) the DJIA broke the neckline of its reverse head and shoulders although the S&P did not; it is, however, a short hair away (circa 1266).

If I thought that there was a reasonable chance of the indices breaking above the upper boundary of their intermediate term trading range, I would be tempted to start nibbling. However, since I don’t, I won’t. I am going to re-establish a small trading position in VIG in the Aggressive Growth Portfolio.

You will recall that some time ago I noted that (1) Universal Corp (UVV) failed to meet the criteria to remain in the High Yield Universe, but (2) I intended to wait for better prices to make the Sale. That time and price has come. Tuesday UVV is being Sold from the High Yield Portfolio.

The stock price of Emerson Electric (EMR) traded through a significant support level. The High Yield and Dividend Growth Portfolios will reduce this to a one half position.

The stock price of Oracle (ORCL) also traded through a significant support level, but did so on a gap down. That put it back into its Buy Value Range. So it is being returned to the Aggressive Growth Buy List; however, no new shares are being Bought at this time.

Steve Cook received his education in investments from Harvard, where he earned an MBA, New York University, where he did post graduate work in economics and financial analysis and the CFA Institute, where he earned the Chartered Financial Analysts designation in 1973. His 40 years of investment experience includes institutional portfolio management at Scudder, Stevens and Clark and Bear Stearns. Steve's goal at Strategic Stock Investments is to help other investors build wealth and benefit from the investing lessons he learned the hard way.