The Ultrashort S&P 500 ETF (SDS) aims to track the S&P 500 at two times the inverse.  So, basically if you want to be short the S&P, this is a good vehicle for those who can only trade stocks.  The SMG Model Portfolio has added 100 shares of SDS today.  The view is that in spite of the Fed’s lowering of rates and foreign currecny loans/swaps, there is still more downside to the market.

Regards,

SMG Staff

Standard Portfolio Positions

The standard portfolio closed out its position on RACK on Thursday for a nice profit. EMA is the remaining position. Looking at the chart, we can see that this stock has gone down some lately, but it has been going down on low volume. We will continue to watch this stock in keep it as a hold for now.

OTCBB Portfolio Positions

The OTCBB portfolio has put up some impressive historical performance numbers as can be seen by clicking here to view the OTCBB Portfolio Tracker. We have some high hopes for the remaining position: SMKT.OB. This stock has been hovering around the 3 cent range for a while. Volume has also been decreasing. However, the pending merger with Texas Prototypes leaves us enthusiastic about this stock’s future.

More to come,

SMG Staff

Standard Portfolio Positions

Today we sold our position in RACK(Rackable Systems) at 31.15 for a nice profit. We will continue to watch RACK for a possible reentry.
EMA(eMagin) took a bit of a hit today. However, it does not look like a very major move to the downside because it occured on very low volume. We will continue to watch EMA for any further weakness.

OTCBB Portfolio Positions

GZFX.OB - This stock seems to be taking a bit of a slide. Some are indicating that this is a prime buying opportunity. We will only give it a little bit more room here.
SMKT.OB - Just as expected, there was not much of a reaction to yesterday’s financial filing. Volume was very low today as it seems that everyone is waiting for the result of the pending merger with Texas Prototypes.

More to come,

SMG Staff

Today we will update both the Standard Portfolio and the OTCBB Portfolio. The standard portfolio’s RACK position made a nice move to the upside today. However, this stock looks like it is now becoming a bit over extended. As you can see from the chart below, it is touching up against its upper Bollinger band. We will be watching it closely tomorrow for a possible exit at the first sign of a pull back. Of course we will be looking for a reentry should we close the position tomorrow.

                               Chart courtesty of www.stockcharts.com

EMA - Our second entry in the standard portfolio has been moving sideways over the last few days. We will continue to hold it for now.

As for the OTCBB portfolio, GZFX.OB has approached the all important .01 support area. Recent news of the extension of its pilot program with Circuit City was not taken very well. We will continue to hold this stock for now as we have already banked a profit on the first half of this position.

                          Chart courtesty of www.stockcharts.com

SMKT.OB - This company filed a form 10QSB/A today. In it, SMKT describes some of its recent financial events. It states that SMKT.OB will be executing a 1 for 10 reverse split in order to complete the merger with Texas Prototypes. It also has some information about a standby equity distribution agreement which doesn’t seem to be too big a deal. We will continue to hold this stock in anticipation of the Texas Prototypes merger.

More to come,

SMG Staff