MODEL PORTFOLIO UPDATE:
We trimmed several of the older buy signals from the Model Portfolio this weekend. This does not represent a major shift in strategy, only the fact that these stocks have had a nice run over the expected time frame.     Now we shift the sector orientation and wait for the next buying opportunity.   The Model now stands at 14 buys and 9 sells.

THE MARKETS
We anticipate a temporary retreat in the markets over the next week or so.   After hitting its upper Bollinger band in early April, the S&P 500 (SPY) is due for a rest.   Though there is some uneasiness in the markets after Friday's plunge, the chart is currently well behaved.   The only real cause for concern would be in the SPY fell back under $126 and formed a new low.   In the absence of that, this should be considered a routine phase of the market's cycle as it builds a base.   The markets may, in fact, drift lower until the last week of April, when the FOMC again convenes on the 29th for another expected rate cut.

The sector momentum table is fairly evenly split between positive and negative sectors now.   Energy has returned to its usual place among the positive sectors, but something about its chart makes us hesitant to rebuild huge buy positions in Energy stocks at the moment.   In this week's Buy List we feature a few Networking/Internet stocks, whose sector enjoys one of the few positively rated sector ETF's that we could find this morning.

This week's Sell List features a laundry list of strong sell signals.   The list of negative sectors is likely to grow in the short term, so take your pick.

The Covered Call Option research features May expirations with annualized returns as high as 303% on selected covered writes.

Best of Luck in Your Active Trading!

Disclaimer: Active-Investor.com is not a broker/dealer.  No references to any investments are to be considered an offer to buy or sell any securities.  As always, investors are encouraged to weigh all research against their need to satisfy their own investment objectives.

MODEL PORTFOLIO UPDATE:
The Model Portfolio underwent a not-so-subtle realignment over the weekend.   The change involves the removal of long positions in Energy and Gold and the removal of short positions in Technology and Retail.   After all was said and done, the Model now stands at a moderately bullish 16 buys and 11 sells.

THE MARKETS
After the Fed's 75 basis point cut in rates on Jnauary 22nd, we signaled the possibility that the Fed was in the process of building a floor under the market.   The $126 low on the S&P 500 SPDR (SPY) was seen as a decent indication of technical support.   As it turns out, the Fed needed to bolster the markets again on March 16th and 18th.   In doing so, the SPY once again held just above $126 for a low.   The successful retest of that support level could do wonders to prove the underpinnings of a stronger market in the coming weeks.

As we begin the new week, the SPY enjoys a modestly bullish set of technical indicators on its weekly chart.   With higher volatility likely in the near term, pay close attention to any challenges of the $126 level.   The overall health of the market relies heavily on support there.

Those changes that we alluded to in the Model Portfolio are reflected in the prominent shifts in the sector momentum table.   Energy, Gold, and Materials have fallen to the negative momentum column, while some of the Financial, Retail, and Technology issues have started to come alive again.   It may take a while before a wholesale change in sentiment occurs for Financial stocks, but in the meantime, we are seeing strong buy signals in a number of Retail and Electronics companies, several of which are featured in this week's Buy List.   The Semiconductor HOLDRS Trust (SMH) has one of the highest technical ratings of any weekly chart among the sector ETF's this week.

This week's Sell List features a number of positions in the newly negative Energy, Gold, and Materials groups.   With the commodities play taking a breather, it is the first in quite some time that short positions have been initiated in these groups.

The Covered Call Option research features April expirations with annualized returns as high as 368% on selected covered writes.

Best of Luck in Your Active Trading!

Disclaimer: Active-Investor.com is not a broker/dealer.  No references to any investments are to be considered an offer to buy or sell any securities.  As always, investors are encouraged to weigh all research against their need to satisfy their own investment objectives.

MODEL PORTFOLIO UPDATE:
Three buy signals were removed this week, some due to profit-taking and others due to a change in outlook.   The Model now stands at 15 buys and 12 sells, a slightly bullish bias as the markets test their lower trading bands.

THE MARKETS
Speaking of those trading bands, the US market indices are approaching theirs, but more importantly, they remain above the lows that they reached just prior to the 75 bps rate cut in January.   With their negative momentum, the stock market indices are likely to test the lower trading bands.   For the S&P 500 SPDR (SPY), that would happen around $132.   A visit there would likely coincide with a stochastic reading of below 20 on the daily chart, which would imply a temporary bottom in stock prices.

That the sector momentum table is currently tilted to the negative side is only of modest concern at the moment.   Our weekly research shows a total of 59 strong buy signals to only 29 strong sell signals.   Of the sectors that remain positive, the Industrial sectors are the most heavily represented in this week's Buy List.

This week's Sell List represents a wide variety of negative sectors that are highlighted.   Among them, the Transportation sector turned negative this week, and it also has one of the most poorly rated sector ETF's that we track.   Judge for yourself...

The Covered Call Option research features April expirations with annualized returns as high as 190% on selected covered writes.

Best of Luck in Your Active Trading!

Disclaimer: Active-Investor.com is not a broker/dealer.  No references to any investments are to be considered an offer to buy or sell any securities.  As always, investors are encouraged to weigh all research against their need to satisfy their own investment objectives.

MODEL PORTFOLIO UPDATE:
After experiencing a visit to their lower trading bands, the market indices have returned to positive momentum.   Their recovery has also brought the Model Portfolio with them.   A large number of short positions were deleted from teh portfolio and replaced with buy signals.   The Model now stands at 18 buys and 13 sells, officially putting the Model back in bullish territory for the time being.

THE MARKETS
The US market indices spent the first few weeks of 2008 visiting their lower trading bands. Since then, the major indices have rallied off of those support levels.   The Fed has aided the recovery with two, semi-desperate cuts in short-term interest rates.   By doing so, they have effectively signaled to the investment community that the Fed will do whatever is deemed necessary to put a floor under crumbling stock prices.

The rate cuts have helped to stem the bleeding and have put the market indices back on positive momentum, for the most part.   Many of the indices look like the S&P 400 Midcap (MDY), which put in a bottom by spending a couple of weeks hovering around its lower Bollinger band.   Since then, the index has recovered by several percentage points and could easily return to the $160 area before meeting resistance.

The sector momentum table has recovered dutifully, as well.   Positive sectors once again outnumber negative ones.   Not surprisingly, with fat tax rebate checks headed to consumers in the coming months, Retail stocks have suddenly caught the eyes of investors again.   Go figure.   A couple of Retailers are featured in this week's Buy List.

Unlike the overall indices, Energy stocks have remained mired near their lows, with no signs of a technical rally yet from those levels.   Once again we find the Oil Service HOLDRS Trust to have one of the worst technical ratings of any sector ETF, and we list a few Energy ideas in this week's Sell List.

The Covered Call Option research features March expirations with annualized returns as high as 238% on selected covered writes.

Best of Luck in Your Active Trading!

Disclaimer: Active-Investor.com is not a broker/dealer.  No references to any investments are to be considered an offer to buy or sell any securities.  As always, investors are encouraged to weigh all research against their need to satisfy their own investment objectives.

MODEL PORTFOLIO UPDATE:
The plunging markets have cast a decidely bearish slant on the Model Portfolio of late.   After finishing the year with a slightly bullish bias, 2008 has not been so kind to stock buyers.   The Model now stands at 9 buys and 19 sells, though the tables are expected to take a turn as soon as this week.

THE MARKETS
Back at the end of November, the markets breifly touched their lower trading bands.   They then embarked on a multi-week rallying that tacked on several percentage points.   Well, guess what? The major indices are back down at their lower Bollinger bands.   Not coincidentally, their weekly charts are now seeing strong bullish technical ratings for the first time in months.

Starting with the Nasdaq, let's size up its outlook for the coming weeks.   On the chart of the QQQQ's, we are seeing very bullish ratings, and a return to the middle of the range (around $50) is an acceptable near-term target.

The sector momentum table is understandably negative at the moment, but note that the Healthcare sectors staged a dramatic comeback last week.   All three of those sectors are now in the positive momentum column, and they dominate this week's Buy List.

Rumblings about a looming recession on the horizon may have finally started to pinch the Energy sector.   Both groups fell to negative momentum last week, and they offer up a number of attractive short sells for this week's Sell List.   Check out the weekly chart of the Oil Service HOLDRS Trust for a look at the possible beginning of a longer term downtrend for the Energy stocks.

The Covered Call Option research features February expirations with annualized returns as high as 485% on selected covered writes.

Best of Luck in Your Active Trading!

Disclaimer: Active-Investor.com is not a broker/dealer.  No references to any investments are to be considered an offer to buy or sell any securities.  As always, investors are encouraged to weigh all research against their need to satisfy their own investment objectives.

MODEL PORTFOLIO UPDATE:
The past three weeks have seen a pitched battle as the major indices try to stay above their support trendline.  The heightened volatility has had an effect on the Model.  Its attempts to stay ahead of the trend has sometimes resulted in short-term leanings that change rapidly.  The end result has been a year ending Model Portfolio with a moderately bullish 16 buys and 12 sells.

THE MARKETS
Since finding support at the low end of their trading ranges, the market indices have basically struggled in a sideward motion.  The December trend, if there is one, has been tepidly bullish.

Boosted by technology stocks, the Nasdaq has soldiered on relatively well.  After testing downside support last week, the Nasdaq 100 (QQQQ) lifted later in the week to close essentially in the middle of its trading range.  A slight upward bias exists with head room extending to around $55.  Downside risk remains proportionately the same, around $46.

Despite the market's recovery last week, the sector momentum table is struggling to catch up.  We have fewer positive sectors than negative ones.  The good on the tech side is being overwhelmed by the negativity of the financial sectors.  While we would have liked to have featured more tech ideas, the sector momentums do not allow it, and this week's Buy List instead favors the Healthcare, Consumer, and Industrial sectors.

Though the financial sector would seem to be an obvious place to look for short selling ideas, the horrible stochastics of many of those stocks implies that they are closer to near term bottoms than tops.  For that reason, we instead feature a handful of Biotech and Telecom ideas for your mutual disdain in this week's Sell List.  While we mentioned this weeks ago, we are seeing an alarming number of Energy stocks with strong sell signals.  Though momentum continues to favor those names, it is worth noting that Energy sector ETF's sport some of the most bearish technical indicators this week.  Keep your eyes open out there.

The Covered Call Option research features January expirations with annualized returns as high as 603% on selected covered writes.

Best of Luck in Your Active Trading!

Disclaimer: Active-Investor.com is not a broker/dealer.  No references to any investments are to be considered an offer to buy or sell any securities.  As always, investors are encouraged to weigh all research against their need to satisfy their own investment objectives.

MODEL PORTFOLIO UPDATE:
We pulled a large numebr of sell ideas out of the Model Portfolio this week in recognition of the return to positive momentum in the markets.  The Model begins the week with a more balanced 10 buys and 11 sells.

THE MARKETS
When we last posted, it appeared that the SPY was headed toward support at its lower Bollinger band.  As one can see from the chart below, that is exactly where the SPY bottomed last week before embarking on a healthy rally.  The index touched a low of $140.66 before recovering as high as $149.87 during the week.  That puts the index back above its 50-week moving average, so the next level of resistance should come from the upper Bollinger band just under $157.

The sector momentum table has righted itself along with the markets.  Although more sectors are negative than positive, we are much more balanced than as recently as a week ago.  Among the sectors that look the most attractive is Retail, whose sector ETF's boast the highest technical ratings among their peers.  The Retail HOLDRS Trust (RTH) is setting up in beautiful position to take advantage of a possibly better than expected holiday shopping season.  That is not necessarily a prediction, just a solid possibility based on the charts and where expectations currently reside.  The Retail sector adds a few, quality ideas to this week's Buy List.

The next best looking sector is Biotech, which also enjoys some highly rated sector ETF's.  One of them is the Biotech HOLDRS Trust (BBH).  Could the BBH be poised to break out of a multi-year slump by breaking that persistent downtrend?  Market watchers often say to never bet the fifth cycle of any trend.  Depending on how one looks at this chart, the BBH is in either the third of fourth leg of the cycle dating back to the highs in late 2005.

The Sell List takes aim at several stocks that are still tied to the housing slump, including stocks in the Home Finance and Construction & Housing sectors.  Keep an eye out on Energy issues, as well. The Energy sector sports one of the lowest rated ETF's in our research coverage this week.

The Covered Call Option research features January expirations with annualized returns as high as 330% on selected covered writes.

Best of Luck in Your Active Trading!

Disclaimer: Active-Investor.com is not a broker/dealer.  No references to any investments are to be considered an offer to buy or sell any securities.  As always, investors are encouraged to weigh all research against their need to satisfy their own investment objectives.

MODEL PORTFOLIO UPDATE:
The Model Portfolio slipped further into bearish territory this week.  With all but four sectors holding negative momentum, the situation is likely to get slightly worse before things start to turn around.  The Model begins the week with an uncharacteristic 6 buys and 16 sells.

THE MARKETS
After flirting with the old highs for a couple of weeks, the markets have gotten slammed over the past several trading sessions.  In October we noted that support for the S&P 500 SPDR (SPY) existed around $142.50.  After closing last week at $145.14, we now find ourselves not far away from that magic number.  Indications are for a lower opening this morning after overseas markets plunged, so an early test of support seems due for this week.

As was mentioned, the sector momentum table suffered last week, also.  Only four sectors survive with positive momentum, and they are what could be considered defensive sectors at that.  The Buy List looks to the Food, Gold, Medical Delivery, and Utility sectors for some much needed help this week.

The Sell List contains a cross section of groups that have turned negative recently.  In that category falls the Energy sectors.  While many sector ETF's sport very negative technical charts, Energy has only recently succumbed, and they may have a considerable ways to go before finding support of their own.

While stocks have zigged, the bond market has zagged, with Treasuries rising quickly in their role as a safe haven.  It may be some time before risk is rewarded again in the fixed income markets.  For the time being, Treasuries are king once again, and already they are approaching overbought levels on a weekly basis.

The Covered Call Option research features December expirations with annualized returns as high as 324% on selected covered writes.

Best of Luck in Your Active Trading!

Matt Koehler
Financial Analyst
Active-Investor, Inc.
matt.koehler@metrostocks.com
http://www.active-investor.com

Disclaimer: Active-Investor.com is not a broker/dealer.  No references to any investments are to be considered an offer to buy or sell any securities.  As always, investors are encouraged to weigh all research against their need to satisfy their own investment objectives.

MODEL PORTFOLIO UPDATE:
The Model Portfolio experienced a major shift as a result of Friday's onslaught.  A large number of buy signals were trimmed, as it is apparent that the markets will need some time to recover.  The Model begins the week with a very balanced 9 buys and 9 sells.

THE MARKETS
Back on October 1st, we posited that the S&P 500 (SPY) stood a decent chance of reaching $156, where it was likely to run into some trouble at that point.  Fast forward to last Friday. After hovering around $156 for the better part of a week, the SPY took a nosedive, dumping ballast in a hurry until it closed under $150.  The tumble sent shock waves throughout the markets, and it does not appear that the decline will reverse itself at the open this morning.  If you are looking for support levels, the 50-week moving average is around $146.55, while the lower Bollinger band on the weekly chart sits at $142.44.

By comparison, the Nasdaq has held up relatively well.  The QQQQ's have barely come off of their highs and retain a modestly bullish chart.

Regarding the sector momentum table, last week's downturn took all but a handful of sectors into the negative momentum column.  Most of the remaining positive sectors have a technology theme, so this week's Buy List leans heavily on the Computer, Software, and Networking/Internet sectors.

The Sell List enjoys a wide berth this week.  No fewer than 147 stocks hit our strong sell screen this morning.  Among those, a disproportionate number of Energy stocks showed up.  Investors apparently believe that a slowing economy is a foregone conclusion and that record high energy prices will be fleeting.

The Covered Call Option research moves out to December expirations and features annualized returns as high as 248% on selected covered writes.

Best of Luck in Your Active Trading!

Matt Koehler
Financial Analyst
Active-Investor, Inc.
matt.koehler@metrostocks.com
http://www.active-investor.com

Disclaimer: Active-Investor.com is not a broker/dealer.  No references to any investments are to be considered an offer to buy or sell any securities.  As always, investors are encouraged to weigh all research against their need to satisfy their own investment objectives.

MODEL PORTFOLIO UPDATE:
The Model Portfolio stripped out thre buy signals that had run their course.  No real underlying theme pervaded the weakness, just routine housekeeping.  The Model begins the week with 22 buys and now only 3 sells.

THE MARKETS
After finding support at its lower Bollinger band and bouncing off of the lower end of its trading range, the S&P 500 has managed to put in a few good weeks.  As it was testing its support levels, we indicated that a run to as much as $156 might be in the cards.  That still remains the best case scenario, although the SPY is now hovering just below $153.  The odds favor a test of those previous highs but trouble soon thereafter.

While the markets were advancing, the sector momentum table actually pointed to some structural weakness, as fourn sectors turned negative compared to only one newly positive group.  The positive sector is Transportation, which does add an idea to this week's Buy List.  However, Technology continues to enjoy some of the best technical ratings of any of the sectors.  The caveat is that the strong momentum of many of those stocks has already pushed them to the tops of their trading ranges.  It pays to be cautious and selective at these levels.  After all, it is October.

The Housing sector continues to bring up the rear, and it is dragging the Banking sector down with it.  Those sectors turned negative aong with Retail, which also contributes a few ideas to the Sell List.

The Covered Call Option research moves out to November expirations and features annualized returns as high as 222% on selected covered writes.

Best of Luck in Your Active Trading!

Matt Koehler
Financial Analyst
Active-Investor, Inc.
matt.koehler@metrostocks.com
http://www.active-investor.com

Disclaimer: Active-Investor.com is not a broker/dealer.  No references to any investments are to be considered an offer to buy or sell any securities.  As always, investors are encouraged to weigh all research against their need to satisfy their own investment objectives.

MODEL PORTFOLIO UPDATE:
The Model Portfolio peeled off a few sell signals as a strong week for the markets put some of the buy signals in position to reach their potential.  The Model begins the week with 17 buys and only 9 sells.

THE MARKETS
The S&P 500 managed to find support at its 50-week moving average.  Its technical indicators have improved considerably over the past three weeks, and now a further recovery is no longer out of the question.  A best case outlook might be tacking on around 4-5% to the $156 level.  Downside risk remains the $145 area, where a breech of the 50-week moving average would spell big trouble for the next couple of months.

The sector momentum table saw a few more sectors return to positive momentum.  Among those that are making noise in the Buy List this morning is the Computer sector, followed closely by Construction & Housing.  Both contribute multiple, strong buy signals to the featured buys in this week's research.  Biotech continues to offer one of the better looking sector ETF's also.

The only sector to turn negative this week is Electronics, which is somewhat surprising, given the strong performance of technology overall.  We add one Electronics idea to the Sell List, along with a smattering of Banking and Automotive stocks.

The Covered Call Option research features October expirations with annualized returns as high as 320% on selected covered writes.

Best of Luck in Your Active Trading!

Matt Koehler
Financial Analyst
Active-Investor, Inc.
matt.koehler@metrostocks.com
http://www.active-investor.com

Disclaimer: Active-Investor.com is not a broker/dealer.  No references to any investments are to be considered an offer to buy or sell any securities.  As always, investors are encouraged to weigh all research against their need to satisfy their own investment objectives.