Friday, October 14, 2005


Weekly Summary

The 17 week winning streak that I enjoyed against the S&P 500 ended in a whimper and not a bang today. While my portfolio managed to gain a couple thousand today, I underperformed the major markets both for the day and for the week. For the week, my portfolio lost $10,889 (1.9 percent), underperforming the S&P 500 (down 0.8 percent) and the NASDAQ (down 1.2 percent). Let's hope that next week is more profitable than this one has been!


More than a few technicians are viewing the 80-week moving average for the S&P as critical. Even if you could care less for charts, the 10 year is eerie:$SPX,uu[g,a]whcayiay[d19941014,20051014][pc80!a!f][vc60]..

Your portfolio correlates closer to the Russell 2000 than to the S&P500. Based on the R2000 index, you did OK last week.

Small caps have had a rough ride the last two weeks and are due for at least a bounce, but the steadily rising 10-Year bond rate is not good for stocks.

Werner Gansz runs an interesting free web site called "Mango Kayak" where he reports on some "hedged" portfolios. He uses Rydex/Profunds to hedge both stock and mutual fund portfolios and "smooth out" his returns. Interesting approach for people in retirement.


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