VTAR Newsletter-September 3, 2004
The Market
Using, AXXel Knutson’sVTAR™
September 2, 2004
[“Volume Trade Analysis Research”™]
“Manage the risk…the profits will take care of themselves”
“In this business, being right is not as important as making money…consistently, and one of primary tenets of the quest is the avoidance of the ‘obvious risk’”
Securities offered through
Cantella & Co., Inc.
Member NASD & SIPC
197 Mountainview Road – Warren – NJ – 07059
Email: axxel@cantella.com
Telephone: 908.647.5750 FAX: 908.842-9150
Cantella & Co., Inc. is registered in all states. Mr. Knutson’s registered states are listed in the disclaimer section. TradingWeapon™ VTAR™ [Volume Trade Analysis Research™] TradingWeapon & TradingEngine is Trade/service marked by and owned by Axxel Knutson.
© 1999-2003 all rights reserved, AXXel Knutson
[“Tradingweapon.com” is the business name for AXXel Knutson, who is a Registered Principal of an independently owned office of Supervisory Jurisdiction [OSJ] with Cantella & Co., Inc. TradingWeapon.com offers all of its securities business through Cantella & Co., Inc., a member of the NASD/SIPC. Cantella is a correspondent of Bear Stearns
An Interesting but Not Unexpected Reversal Day
A late-day reversal rally helped prevent a second low volume drop Tuesday, August 31st with the NASDAQ closing up 0.1% on 1.3 billion shares, and the Dow Industrials dribbling up 0.5% on 1.1 billion shares. The Dow Jones industrial average gained 51.40 to close at 10,173.92. The Nasdaq composite added 1.61 to 1,838.10. Advances led declines, 2268-1032, on the New York Stock Exchange in volume of 1.13 billion shares. On Nasdaq, advances led declines, 1814-1241. That rally extended itself on Wednesday with the Nasdaq up 12.31 to close at 1850.41. the Dow crunched 5+ points. The lack of volume on recent sell-offs continues to leave us with on the edge of a major new buy signal, the first in months and sets the stage for a potentially dramatic and positive end to the year. This movement came in spite of two disappointing economic reports on Tuesday and a spike up to a $44 close in oil prices Wednesday.
Nasdaq Composite Chart is courtesy of Clearstation.com
The leadership profile [highs vs. lows] is bullish, with new highs outpacing new lows and the short-term momentum indicators remain positive, conflicting with some of our data of the primary trend indicators. This is not unusual at such turning points and we continue to stay the course on stocks and positions as we review the various industry groups to best take advantage of what could be a dramatic few months. If volume remains low, and lower support areas hold as we expect, then it is simply is a matter of time before the next big volume comes into the market and pushing the indexes to new highs. Unlike some, we have no problem with low volume advances since that price movement is typically without excessive speculation. It is when volume enters after a significant move that can be worrisome. We are surely not there at this point.
Dow Jones Industrial Average Chart is courtesy of Clearstation.com
Axxel Knutson
DISCLAIMER
Investment decisions should not be based solely on our proprietary indicators, which are intended as an adjunct to your additional analysis. Please accept these comments as market commentary. We do not intend these comments to replace detailed fundamental analysis. We urge you to accomplish that additional research via your contacts on the Internet or through a trusted financial advisor. If you want additional information on any of the securities discussed within, we will give it upon your request.
This report has been prepared from original sources and company data we believe to be reliable, but we make no representation as to its accuracy or completeness. This report is published solely for information purposes. It is not to be construed either as an offer to buy or sell or the solicitation of an offer to buy or sell any security or the provision of or an offer to provide investment services in any state where such an offer, solicitation or provision would be illegal. Any opinions expressed herein are statements of our judgment on this date and are subject to change without notice and we likely not update that change to you. The opinions expressed are that of AXXel Knutson and are not necessarily representative of Cantella & Co., Inc. Cantella & Co., Inc., its affiliates and subsidiaries and/or their officers and employees may from time to time acquire, hold, or sell a position in the securities mentioned herein. Brokers with Cantella will likely have differing opinions.
The author of this report, Axxel Knutson, very rarely invests in any of the securities mentioned in these reports nor does his immediate family unless such securities are management companies of mutual funds or indirectly if such equities are included in mutual funds or index options. Equity investment involves risk of capital loss. We recommend that your portfolio be diversified by company size, industry group, and geographic region and by currency.
It should not be assumed that future selections will be profitable or will equal the performance of past selections. Securities listed herein illustrate selections made using proprietary indicators known as VTAR™ [Volume Trade Analysis Research™]. These names, VTAR™, TradingWeapon, www.TradingWeapon.com Trading Engine™, www.tradingengine.com ™, Volume Trade Analysis Research™, are service marks/trademarks of AXXel Knutson.
All recommendations and commentary are directed toward sophisticated, aggressive traders who have significant experience trading in a volatile market and who possess the financial resources to risk a loss of some or all of their invested funds. Commissions and, if you use margin, interest charges will lessen any return on investment. VTAR [Volume Trade Analysis Research] centers around the proprietary analysis of trading volume, price, general fundamental analysis, beta concerns, group rotation and detailed analysis of risk as it relates to entry and exit points in reasonably liquid stocks.
AXXel very rarely trades in the same stocks as clients or those written about in his newsletters or spoken about in media appearances with the exception of stock index options and mutual fund management companies. AXXel will disclose positions personally held in any such stocks in newsletters when published. Cantella & Co., Inc. Securities, its brokers and its officers may take and have positions although they receive no advance notice of new recommendations or changes in opinion. Those interested in additional information on any stocks discussed within may call at 908-647-5750 or email AXXel at axxel@cantella.com. We do not deal in BB stocks [with the exception of some ADR’s]. Refreshing, isn’t it?
Mr. Knutson is registered in the following states and additional states may be added upon a client relationship: AL, CA, CO, CT, DE, Fl, GA, HI, OH, KS, KY, MA, MD, MI, ME, NJ, NY, NC, OR, PA, TX, VA, WI and. WA. Other states may be temporarily registered or pending.
Stock charts provided through the good offices of www.clearstation.com. Our research can also be found at Reuters about.reuters.com and on First Call thomson.com on a pay-per-report basis. You may hear AXXel’s commentaries on an irregular basis at the BBC World Service bbc.co.uk, BBC Radio Five Live bbc.co.uk, Radio Ireland [RTE] rte.ie, CNNfn money.cnn.com and on Bloomberg Radio & Television www.bloomberg.com.
WANT AN ACCOUNT WITH AXXEL?
It’s easy. AXXel handles individual accounts, IRA’s, IRA Rollovers, trading accounts, hedged [long & short accounts], 401K and Individual 401K [look into this if you are self-employed], SEP, SAR-SEP and Keogh accounts. He also handles more conservative OPTION WRITING ACCOUNTS concentrating on dividend-producing stocks and writing options against these fully covered positions to gain additional INCOME.
But AXXel won’t call YOU. YOU have to call him to initiate a discussion. You see the phone number…
AXXel's VTAR Newsletter-September 3, 2004 |
