OUTPACEsys Investment Institute
Singular Views for Profitable Investing

Goldman Sachs Accused of Fraud
Plus:
How We Did This Week


by Paul DeCaro, 16 April 2010


In a Nutshell
New Opportunities
Market Trends
Comparative Performance
Alternative Markets
Sectors
Bottom line


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Best of Equities

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Best of Alt Markets

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Best of Sectors
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What We Are Doing - After a long period in the overbought range, the equities market seems ready for a rest. For now this is no more than a pause, since both the long and the intermediate term trends are still positive and a new ma rket direction has certainly not manifested yet. In anticipation of a short term correction, we did, however, close some of our profitable positions.

Great results in this market that, since our latest bullish signal in early February, saw the DJ Average rise about 1,200 points!

What The Markets Are Doing - Friday's news that the SEC had charged Goldman Sachs (GS) and one of the company's vice presidents with fraud related to subprime securities caused a 9.4% loss for GS and hit the broader financial sector, which fell 3.8% in its worst slide since February. More than 90% of the stocks in the S&P 500 followed suit and retreated into the red.

Many market participants were looking for a reason to lock in profits after the S&P 500's climb of nearly 4% over the course of the previous 10 sessions, 7 of which marked new 52-week highs.


Gold had a sharp pullback on Friday (which stopped us out of our positions with good profit), but the overall trend is still quite bullish. We'll look for new opportunities to go long again in the coming days.

Crude Oil also retreated a bit on Friday and is working some resistance which, if crossed, could bring us to new highs in this market.

Long Term Treasury Bonds
are still in a downward move, while Corporate Bonds  are trading over a relatively extended range. We are currently staying out of this market.


NEW OPPORTUNITIES

Verizon Communications (VZ), Wal-Mart Stores (WMT) and Bristol-Meyers Squibb (BMY) are poised for a downturn. Watch our real-time alerts for details and timing.

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16 April 2010                                    Market Trends

Equities

DJ, S&P500 and NASDAQ are hitting long term resistance. We closed our long term positions and will be looking at a potential short- intermediate- term retreat.



Equities are still in bullish long- term mode. We will look out for temporary countertrends that can be expected after steep rallies like the one we had so far this year. As the dust settles,  we will start opening new long term moves. Subscribers will receive further details in the upcoming reports.





































Crude Oil
is working some resistance which, if crossed, could bring us to new highs in the upcoming months.


























Gold
- The overall long term trend is still quite bullish, although we are still working now a five month trading range.













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DJ
Figure 1 - Dow Jones Average daily performance and OUTPACEsys triggers

QQQQ
Figure 2 - QQQQ (NASDAQ) daily performance with OUTPACEsys triggers

OilFigure 3 - Crude Oil (shown as USO ETF) daily performance with OUTPACEsys triggers



Gold
Figure 4 - Gold (shown as GLD ETF) daily performance with OUTPACEsys triggers


Comparative Performance


Equities

Equities constituting the Russell 2000 Value index show the best perforance so far this year with a 13.5% return or about three times as much as the Dow Jones Average.














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Alternative Markets   
                      


YTD comparative performance of alternative markets.

Real Estate is the strongest so far this year, with over twice the return of the S&P500.

Emergin Markets are trailing with a slightly negative return.












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Sectors

Retail  and Consumer Discretionary stocks are delivering the best performance YTD, at 20.7% and 14.6% respectively.

Utilities are the worst performers so far, at a negative 4% return.



















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Bottom line
:
Our plan for 2009-2010 is to continue following our proven approach and strategies to
  • achieve outstanding returns, and
  • manage a skillfully diversified portfolio
We will do that in the comfort of our safe money management techniques that ensure full control of occasional minor losses while allowing full realization of large profits.

As usual, the full details of our market analysis and real-time trade suggestions will be delivered to you via the
OUTPACEsys e-mail alert system.


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