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Magic Charts Newsletter
July 3rd, 2002 |
This issue includes...
1) "How is the sample portfolio ?"
2) "What is happening and what to do now?""
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1) "How is the sample portfolio ?"
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The sample portfolio is on -7.5% now, which is not bad
compared to the -10.1% of the Dow and -30.4% of the Nasdaq
Composite, but beating the index this way is not our goal, we
prefer to stay positive :-)
We sold Moore corp. for long time a pretty stable money
machine in our portfolio, but they dropped through the 20%
under the highest point and through the support line.
A positive side effect is that our debit balance is on 23%
making us less vulnerable for market drops.
There is a screen shot at the bottom of this page
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2) "What is happening and what to do now?"
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Our expectations last month
about a soon recovery of the
stock market where wiped out by yet an other scandal, pushing
our result negative.
What a year it was until now, the portfolio went through the
following phases, first the Enron affair, later followed by
the sceptism about accountancy firms.
Than we had the Tyco and now Worldcom scandal, combined with
al-Quida threats teared the markets down over and over again.
In June, July and August the stock market is normally slower,
people tend to take less risks, and sell earlier there stocks
so they can go on holiday with less to worry about.
What to do Now ?
Basicly there is not much wrong with the stock market.There
have been a lot of scandals lately and although severe,
they affect a limited part of the market, after the initial
'panic' the prices stabilize or the money goes somewhere
else. There are always companies gaining from certain market
situations. After the Enron scandal we saw a big rise in
gold related companies like Harmony Gold, so we added them
to our portfolio.
These trends can easily be spotted with our 'Buy the Winner'
view in our Magic Charts program We also bought Big Lots
and Nucor the last shift when the market suffered from a
general decline, probably started by the al-Quida threats
and a general sense of insecurity.
The US dollar is down compared to the Euro, but is that
bad? Import in the US will be more expensive also because
of the steel import restrictions, but export from the US
will be cheaper so companies with a big export to Europe
will gain from this.
Also the US consumer confidence is good, so we expect to be
amble to get a positive result soon.
We will be using our 'Buy the Winner' view to be amble to
find the companies who are gaining from the current market
situation.
We expect the market to improve in September when everybody
is back from there holiday, and want to make some money!
If you don't already have a subscription on the Magic Charts
subscribe now! and be able to pick the companies who are
gaining!
Download the demo from the download section and install it.
After installation, it will generate a base code with which
you can subscribe to the Magic Charts.
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Copyright 1998-2002 by Magic Charts. All rights reserved.
This document may not be copied in part or full without
express written permission from the publisher.
Trading in stocks involves risk. You can lose money. We are
not making recommendations to buy or sell any stock. We share
our views about how to trade stock.
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Magic Charts sample portfolio per 07-02-2002
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