SectorVue weekend comments for Tuesday January 19th, 2010
Taxachusettes
The Dow Jones finished down 8 points and the NDX sank 28 points. The Midcap MID
and Russell RUT indices are tops in rank which bodes well for the Bulls.
Sector Action for the week was minus 1233 with 10 Sectors up and 25 down. With that
much negative Action we would have expected more of a pullback in prices which means
there is still a lot of positive momentum. The Market Barometer topped out at 53 in bullish
territory on January 8th and now sits at 34.
Rydex Alerts- Took advantage of the ups and downs last week now in cash. Feels like an
‘up one day down the next’ market.
Short term Trading indicators- Overbought
Market Breadth- Cumulative Market Breadth continues to climb higher and Tradewind momentum
is strong.
INTERMEDIATE TERM TRENDS- Bullish
INTERMEDIATE OSCILLATOR - Bullish Territory
When I lived in New Hampshire Massachusetts was known as ‘taxachusetts’ and the first
Interstate highway exit was a beverage and tobacco stop and turnaround. Tuesday’s special
election to fill Kennedy’s Senate seat is the focus of national attention and the issues and
headlines have not changed much 35 years hence. “May you live in interesting times” is a fortune
cookie proverb. That means good and bad times. For traders it means playing bullish and bearish
ups and downs.
Internet DOT- Top ranked with Google GOOG acting as the primary wind sock for the
overall market.
Pharmaceutical DRG, Biotech BTK and Healthcare IHI / IHF- Rallied in overall rank
and price last week. Some of this has to do with the special election Tuesday some is due
to the value in the stocks. We bought Lilly LLY last week.
Entertainment PEJ- The pizza places delivered last week - Dominoes DPZ and Pappa
Johns PZZA. Gaming stocks are finding support and we bought Intl. Game Tech IGT.
Ultra ETF’s- SSO and TWM are tradeable although daily ranges are thinning.
Agribusiness MOO and Basic Materials XLB- Falling in overall rank which could be lax
Chinese demand.
Retail RTH- next to last in overall rank after the holiday surge and big sales. Fairly normal
price action but we do want to keep an eye on the pulse of consumers.
SectorVue and Rydex alerts are for educational purposes only and do not constitute 'investment advice'. No
representation is made that strategies will produce a profit.
There is risk of loss in all trading.
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