On the open, the Power Dip system will close Savient Pharmaceuticals, Inc. [[SVNT]] , Waters Corporation [[WAT]] , and DENTSPLY International Inc. [[XRAY]] .
The system was able to quickly recover from its largest drawdown since I’ve been tracking it here. This recovery was due in large part to Noven Pharmaceuticals, Inc. [[NOVN]] being bought out, which netted a greater than 20% gain.
I am still concerned about the lower than historically normal average trade, and commissions continue to eat away at the returns. I suspect that as the small caps begin to stabilize that the system will be taking fewer of these trades, which might mean that commissions will start to come in a tad lower (fewer shares purchased means lower commissions).
The system will now go dormant until the markets soften and we get some pullbacks to buy.
