Intermediate-Term Traders Report
I could have been too optimistic about the
market. In fact, the bottom may be still farther away than we think because we
have just entered the bear market. It sounds so idiotic, but I want you to take
a look at the chart below.
As you can guess easily, Bull ProFund (BLPIX) performs much better in a rising
market. Its performance is closely tied to the S&P 500 Index. The issue
broke down below its support level last week, and three moving averages (10-,
30-, and 40-week EMAs) are beginning to converge.
Now, look at another chart below.
I bet you don’t need me to explain, but Bear ProFund (BRPIX) is designed to
appreciate in a declining market. The fund took out its resistance level last
week, and converging moving averages suggest higher prices are
ahead. Don’t be too bullish yet!
Economic Calendar:
| Date | Time | Release | For | Consensus |
| Aug 17 | 08:30 | Housing Starts | Jul | 1890K |
| Aug 17 | 08:30 | CPI | Jul | +0.1% |
| Aug 17 | 09:15 | Industrial Production | Jul | +0.5% |
| Aug 17 | 09:15 | Capacity Utilization | Jul | 77.5% |
| Aug 19 | 10:00 | Leading Indicators | Jul | 0.0% |
| Aug 19 | 12:00 | Philadelphia Fed | Aug | 30.0 |
Notable stocks of the week:
Cisco Systems (CSCO): The issue formed a very bearish wide range bar on
extremely heavy volume. Look for a continuation of the downward move.
Sears Roebuck (S): The stock is pulling back from the recent low on
decreasing volume. Look for a resumption of the downtrend.
Gillette Co (G): The issue is attempting to rally out of a pullback. Look
for a continuation of the upward move.
Best performing industries of the week: Precious Metals +3.42%, Cosmetics
+2.31%, Internet Services +2.10%, Household Products +1.39%
Worst performing industries of the week: Semiconductors -9.84%,
Communication Technology -9.21%,
Good night and see you next week.