The Ts indicators closed at 1.10 and 1.04 and as both are now above 1.00 we are said to be in an Up trend condition. As the 10 week moving average is above the 50 week moving average on the S&P 500 we are said to be in an UP/UP condition. We now want to increasingly position ourselves to the long side, especially if and as the Nasdaq and S&P 500 close back above their respective 50 day moving averages. So far this has been an advertisement on why you shouldn’t use automatic stops, but we will persevere. We ran a similar portfolio a few years ago and it did very well, but certainly the recent “whipsaw” action has meant this has been an abysmal start. Moving forward we will let the computerized stock screens make the selections and forgo the technical and fundamental commentary. Today we will buy the following at the market opening price;

1) MBI Inc (MBIA – 5.11) we will buy 2000 shares at the market opening price, place stop at $4.50

2) Gannett Inc (GCI – 14.95) we will buy 670 shares at the market opening price, place stop at $13.55