TUESDAY, MAY 13 END-DAY SUMMARY

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brookinsbuys est 1991

“It is the Lord your God which teaches you to profit and leads you where you should go. Call unto God and He will answer you and show you great and mighty things, which you know not.” ~ Isaiah 48:17

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MARKET WEEK: May 14 – May 16, 2008

(When both 9-day and 200-day moving averages (trends) are UP, it is safe to buy new stocks and hold. When both are DOWN, your portfolio should be mostly in cash. When one is UP and one is DOWN, then you should minimize your capital exposure, reduce positions, and be very selective when buying new stocks).

DJIA (12,832): 9-day trend: up; 200-day trend: down

NASD (2,495): 9-day trend: up; 200-day trend: down

SP500 (1,403): 9-day trend: up; 200-day trend: down

Good evening everyone.

No change since yesterday’s letter - the markets are still trying to break up through significant price resistance. We will see a LARGE move down or up sooner than later, and I am not sure which.

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TRADES IN PROGRESS

key: stock name (symbol : entry price): current price; notes

Stocks that I am actively trading. A stock that has been trading in a range (ex: between $5 and $6) for a period of time, that is called "Basing-Breakwatch;" when it finally breaks above $6, that is a major buy point and the stock is "Breaking Out" of its range. I buy from this section occasionally, but usually use a "limit buy" order. Trending Higher - the stock is in the middle of a trend; more risky to buy in this chart pattern. “Extended Short-Term” – the stock has run a bit and may rest ant day; best to buy these during weakness; "Basing- Breakwatch" - stocks that are in the base; they will be buys if they break above their price resistance (high end of trading range). I try to buy from this section usually with a "buy stop" order. “Pullback to Support” - stocks that have moved, or are moving back price support. “Weak Stocks” - have broken price support or are acting weak; consider “Selling,” or Taking Profit” or “Taking Loss”.

BREAKOUTS

None

TRENDING HIGHER

DIGITAL ALLY (DGLY : 8.60): 9.73; took some profit at 14% gain; use sell stop 8.79

ENERGY CONVERSION DEVICES (ENER : 35.78): 55.20; took profit at 39% gain

EXTENDED SHORT-TERM

TELECOMMUNICATION SYS A (TSYS : 4.42): 4.80; use sell stop 4.49

BASING – BREAKWATCH

GIANT INTERACTIVE (GA : 17.12): 15.74; use sell stop 15.14

RESTING

None

PULLBACK TO PRICE SUPPORT

None

WEAK

TATA COMMUNICATIONS (TSL : 43.74): 43.01; use sell stop 40.49

SELL OR TAKE PROFIT

CANADIAN SOLAR (CSIQ : 30.95): 40.78; take profit above 40.5 (32% gain)

EARTHLINK (ELNK: 9.05): 9.06; stopped out

EXCEL MARITIME CARRIERS (EXM : 42.99): 52.10; take profit here at 21%

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NEW TRADES

Primary goal is to make a 4% gain within 10 trading days; then to sell majority of position and let the rest ride in the Active Trader section until the trend is broken. In a good market, the “A” rated stocks on our spreadsheet would be buys.

See spreadsheet comments

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WATCHlist

See spreadsheet

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$100,000 MODEL PORTFOLIO

01/01/08 SP500: 1,468

05/13/08 SP500: 1,403

Percent Gain: (4.43%)

01/01/08 Model Balance: $100,000.00

05/13/08 Model Balance: $112,213.62

Percent Gain using stops: +12.2%

CURRENT MODEL POSITIONS

Key: Entry Date: Direction, # of Shares, Symbol (Entry Price): Current Price; notes; Status or Action)

3/28: Long 60 shares VISA (V : 64.17): 82.38

4/18: Long 580 shares DIGITAL ALLY (DGLY : 8.60): 9.73; use sell stop 8.79

5/5: Long 315 GA (15.79): 15.74; use sell stop 15.14

5/7: Long 150 CSIQ (30.95): 40.78; use sell stop 28.56

5/7: Long 100 ENER (35.79): 55.20

MODEL CHANGES

Sell 100 shares of CSIQ above 43

Sell 50 shares of ENER above 54

Buy $5000 worth of each of the following if they meet the buy criteria on the spreadsheet:

SDTH; VIP; YTEC;

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CHARTS OF INTEREST