Sold All The Large Financials Ahead of Time, We Ride The Bull

Wall Street Tempest or Opportunity?

Last week’s 2-day bounce was short lived as once again renewed fears of potential “subprime spillover” and surging oil prices overshadowed some solid earnings reports. Unfortunately, even though many earnings news are favorable (and should prevail) the change in the winds and trend reversal now leave the Dow Jones Trader Portfolio with one objective… to protect our gains.

Our call to sell all of our large Dow “financials” stocks back in June seemed to be perfectly timed. (See ‘sells’ for AIG, AXP, C and JPM on Friday June 15, 2007 below). Today General Electric (GE) seems to be the last standing pseudo-“financial” stock we are selling to protect any profits. Given the recent shift of overall market trend, we are now quicker to act on locking in on profits and cashing out. We can always easily repurchase the same stocks if necessary when time confirms Wall Street's bullish uptrend has returned.

This volatile market also presents an opportunity for the Dow Jones Trader to sell any weak stock showing trend deterioration, especially discarding any stock which demonstrated an overall anemic performance since the position was established … And note of interest: Thanks to several confirmed consecutive down sessions on Wall Street last week, The Dow Jones Trader Portfolio (DJTP) is finally off margin for the first time this year…

Simply put, “The Trend is Your Friend”. All we continue to do here is follow the same ol' boring rules, which remains the essence of The Dow Jones Trader Portfolio --- that of navigating the trend and piggy-backing on the large institutions ... of course only limiting ourselves to any of the DOW 30 stocks.

As many worry of the current Wall Street tempest to date, the ongoing strong performance of the Dow Jones Trader Portfolio still remains a winner and in the lead, and this fact is the silver lining.

YTD % Change:

DJTP ........... +20.7%
S & P 500 ..... + 1.4%
NASDAQ ....... + 3.9%

See below for the complete Dow Jones Trader Portfolio holdings: