SectorVue weekend comments for Monday April 19th , 2010
When EF Hutton talks...
The Dow Jones finished up 21 points and the Nasdaq 100 NDX up 18 points for the
week. Broad based indices had negative Action for the week and the Bears rang the bell
on Friday.
Sector Action for last week was minus 1095 with 19 Sectors up and 15 down. Last
week good well be the highs for awhile. The Market Barometer is on a Sell signal and is
getting close to bearish territory. (see graph on page 4)
Rydex Alerts- holding Bearish Russell at Rydex.
Short term Trading indicators- Overbought SELL
Market Breadth - Cumulative Market Breadth gave a Sell signal for the first time since the Buy in
February. This indicator has been the most prescient over the last two years.
INTERMEDIATE TERM TRENDS- Still Bullish.
INTERMEDIATE OSCILLATOR - Overbought Sell
...people listen.
Most people remember the EFHutton phrase and know the firm no longer exists after tarnishing their
reputation with a check kiting scheme in the 80’s. This begat quicker clearing checks and those
signature boxes we are now so familiar with. No telling what the fall out from the most recent
banking and derivative mischief will be. Some old line firms like Lehman and BearStearns, even
Merrill have disappeared or been absorbed - essentially by the government entity Bank of America. I
guess ‘Change’ really is the new bumper sticker buzz word. Goldman should take itself private again
and get smaller with the old risk controls.
Semiconductor SOX- top ranked with good earnings from Intel INTC and others.
Unfortunately the after earnings price is also the recent high and the SOX is overbought
according to our implied risk scoring.
Google GOOG- Not a Sector but one can argue a good market indicator. After good
earnings Thursday the stock gave back a months worth of gains in one day. Our Market
indicators have been flashing the high risk lights for a couple of weeks and we have taken
some flak for heeding the warnings. Those who at least sold Covered Calls on Goldman
and Google as suggested should be ahead and can close out the stock and Call positions.
Ultra ETF’s- Getting back into some back and forth trading zones for SSO and
TWM.
Oil XOI - still in an up trend but off recent highs. Watching closely to take profits on COP
and others.
Agribusiness MOO- stocks like Monsanto MON and Potash POT have been declining
steadily for weeks. These have been a good indicator on the strength of the worldwide
economy (China).
Pharmaceutical DRG- Last in overall rank citing healthcare reform adjustments. Another
major cylinder in the economy not doing so well.
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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