Watch List: 10/30/09

The market appeared to be losing the 10,000 mark battle. The Dow lost 259.6 points (-2.6%) this week. At the end of the week, my watch list expanded to 20 companies compared to 15 from the previous week. Here are the companies on my watch list as of October 30, 2009.

Symbol	Name	Price	P/E	% Yr Low	Yield	EPS	Div/Shr	Payout Ratio
WTR	AQUA AMERICA INC	15.45	19.81	0.00%	3.75%	0.78	0.58	74%
SHEN	Shenandoah Telecom	16.69	26.49	0.91%	1.92%	0.63	0.32	51%
WMT	WAL MART STORES	49.68	14.57	7.42%	2.19%	3.41	1.09	32%
BCR	BARD C R INC	75.07	15.04	8.89%	0.91%	4.99	0.68	14%
CWT	CALIFORNIA WATER SVC	36.57	17.33	9.20%	3.23%	2.11	1.18	56%
NWN	NORTHWEST NAT GAS	41.81	15.15	10.87%	3.97%	2.76	1.66	60%
WEYS	Weyco Group, Inc.	22.30	20.65	10.89%	2.69%	1.08	0.60	56%
PNY	PIEDMONT NAT GAS CO	23.28	15.02	12.57%	4.64%	1.55	1.08	70%
UGI	U G I CP	23.88	9.91	12.96%	3.35%	2.41	0.80	33%
CAH	CARDINAL HEALTH INC	28.34	8.88	13.95%	2.47%	3.19	0.70	22%
WGL	WGL HOLDINGS INC	33.06	13.83	15.63%	4.45%	2.39	1.47	62%
XOM	EXXON MOBIL CP	71.67	11.50	15.86%	2.34%	6.23	1.68	27%
MCD	MCDONALDS CP	58.61	15.14	16.20%	3.75%	3.87	2.20	57%
NJR	N J RESOURCES CP	35.20	13.38	17.53%	3.52%	2.63	1.24	47%
BDX	BECTON DICKINSON CO	68.36	14.18	17.58%	1.93%	4.82	1.32	27%
FPL	F P L GROUP INC	49.10	10.37	18.37%	3.85%	4.74	1.89	40%
SJW	S J W CP	21.77	23.92	19.48%	3.03%	0.91	0.66	73%
PGN	PROGRESS ENERGY INC	37.53	13.08	19.71%	6.61%	2.87	2.48	86%
T	AT&T INC.	25.67	12.71	19.73%	6.39%	2.02	1.64	81%
AWR	AMER ST WATER	33.15	24.56	20.28%	3.02%	1.35	1.00	74%
21 Companies

Coppock Curve

The end of the month means it's time to review the Coppock Curve. This month, I have added the 14 months moving average which my colleague at Dividend Inc illustrated that it proved to be a useful cross check for false rally. Despite what the market did today, this indication is very bullish for the market in the long-term.

Had you followed this indicator and bought in June 2009, you would be sitting on a nice profit.

Market Commentary

This week action action was horrible. We probably had at least two 90% down day (Wed & Fri). The Industrial appeared to be in a good shape still. The Transport, however, is not acting well. The critical level is 3,576. The index is also making a lower-low and have broken the 50 day moving average line without any sign of bounce back.

From the Dow Theory perspective, my reading is that the Transport has entered the bear market territory. The haven't confirm such move until it break below 9,487 and make a lower-low like the Transport. If the Industrial diverged and heads higher next week while the Transport continue down, we'll have a bear market non-confirmation which is bullish. For now, it can be said that the market is in an upward trend and until proven otherwise, I am long. The Coppock Curve above may be the missing puzzle to this market.

I've been lighting up this week taking profit in names like Abbott Lab (ABT) and Procter & Gamble (PG). I am still holding on to KRE, ADP, PAYX, WMT, and PNY. If, and when, market condition change? I too will change. For now, stay long and turn your attention to the Industrial. This market is such a thrill ride.

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