Fundamental Trader #108

By: Mark McMillan | Tue, Jul 10, 2007
Print Email

7/9/2007 3:25:19 PM

Trade recommendations:

We never entered the long trade on SCI and we will continue to delay that entry. Although SCI is very close to our recommended entry price of $12.50, we think it may drop even further and will continue to monitor it for a trade entry.

We are looking at a couple of trade entries today.

The first is for a rally to continue to break upward through resistance. We are looking at long positions that will most benefit from a market surge.

Business: INFOSYS TECHNOLOGIES -ADR, (INFY) provides managed software solutions to clients worldwide through an extensive non-U.S. based (offshore) infrastructure. The company has sixteen state-of-the-art offshore software development facilities located throughout India and one global development

Buy shares of INFY with a limit of $53.00.

We will exercise caution on this entry as if the market begins to roll over as evidenced by the major indexes, then we will delay this entry. Until cancelled with an alert, go ahead and enter the order with your broker.

We are also looking at a trade on EBAY.

Business: EBAY INC, (EBAY) operates an online person-to-person trading community on the Internet, bringing together buyers and sellers in an auction format to trade personal items such as antiques, coins, collectibles, computers, memorabilia, stamps, and toys.

Place an order for EBAY shares as follows:

Buy shares of EBAY with a limit of $32.30.

We won't enter this long trade until EBAY pulls back so we may have to be patient.

Short Trades:

We are also looking at various short trades. The recommended trade will likely be chosen from the following list of candidates. We will issue a further alert as to which candidate and as to what the proper entry level is, etc.


Open Positions:

We entered the short position in VOLC at $20.50. Share price closed at $20.79 on Friday, so we are behind in this trade by about 1.4%. Let's move the stop down to $21.50.

FDG has rallied to $34.23. This leaves both of our 100% positions at significant profits so we will likely exit one of the positions today if the price reaches $34.42.

Sell all shares on our initial position in FDG at a limit of $34.42 to close that position.

We will move the stop on the remaining position up to $32.30.

We continue to be paid a quarterly dividend to hold FDG, which has now occurred four times since our purchases and will occur again in a week's time. We have collected just under three dollars in dividends so far (less the Canadian governments 15% withholding for non-Canadians) and will shortly add another CAN$.065 to our holdings (this is locked in even if we sell shares at this point.

We closed the positions on BPT and RDY when their stops were hit and will be summarizing those profits in a table later this week.


We believe the markets are due to break out (higher) or reverse lower in a larger move. The Dow and S&P-500 are close to putting in triple tops with price currently just below resistance. If the Dow and S&P-500 successfully break through resistance, then the markets will become more bullish again. If, however, these levels can not be overcome, then a more serious sell-off is likely to occur. We intend to take advantage of this situation by entering short trades at resistance with stops just above resistance.

We will also look to enter long NASDAQ trades, as the NASDAQ looks set to move up further. Of course, the problem with this scenario is almost every newsletter writer and market pundit believes this is likely, so this is usually the time when the market will move in the opposite direction. We will monitor the situation and position for either eventuality.

Regards and Good Trading,



Mark McMillan

Author: Mark McMillan

Mark McMillan
Fundamental Trader Alert

Please use for questions/coments.

I'd like to thank all of you for actively promoting our services to your friends, family, fellow traders and associates in 2005. If you're interested in making some money in 2006, we've established a free referral (affiliate) program to reward you (pay you) for any future referrals. All you have to do is sign up for the free affiliate program and you'll get a special link. Use that special link when recommending us to your friends, family, fellow traders and associates and we'll pay you 80%. Better yet, if you can get them to sign up for the affiliate program - we'll pay you another 10% on their referrals - and if they add additional referrals, you'll get another 10% on those sales. It's our way of saying thank you for your continued support. Here's a link with the details (it's on the home page of our site):

To ensure delivery and prevent this e-mail from being delivered to your bulk mail folder, please add our 'From' e-mail address,, to your address book.

Want to trade options? Then trymy Stock Options Speculator. It is issued at least weekly and recommends very aggressive stock options plays that target >100% gains. Click here for a 4-week Free Trial.

All profit examples are hypothetical, assuming that subscribers bought and sold at the time the recommendations were issued. Actual results can and do vary based on day of execution and commission charges.

There is a very high degree of risk involved in trading. Past results are not indicative of future returns. The Fundamental Trader and all individuals affiliated with The Fundamental Trader assume no responsibilities for your trading and investment results.

Copyright © 2006-2007 Mark McMillan

All Images, XHTML Renderings, and Source Code Copyright ©