SectorVue for 2/25/8
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TTHQ Staff
, Feb 25 2008 05:29 PM
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#1
Posted 25 February 2008 - 05:29 PM
SectorVue by David Schultz for February 25th, 2008
Lookin’ for Love
The Dow Jones gained 32 points while the NDX slipped 7 points. Commodities are still
leading but are very overbought. The price action is parabolic and we all know how that
ends. Stocks on the other hand are up from January lows but it doesn’t feel like it.
Sector Action for the week was minus 180. The Market Barometer bottomed Jan 22nd
and looks like it can get into Bullish territory. Our Sector portfolio is up 2.8% versus market
indices down 9%.
This is hard work. Indicators are pointing up but daily tape action and market breadth is
dismal. The market needs strong leadership from a growth sector. Something to hang its
hat on other than corn or Gold.
Rydex Alerts- Bullish RUT.
Short term Trading indicator- crossed into bullish territory awaiting market breadth to kick
in.
INTERMEDIATE TERM TRENDS- Crossing into Bullish Territory.
INTERMEDIATE OSCILLATOR - Bullish.
The market feels heavy - sharp rallies have been met with steady selling. On the other hand there
have been several times I thought the market would get sucked into a Black Hole of selling and it
went up instead. Either the Plunge Protection Team is at work or some real value is appearing.
Perhaps a bit of both.
Natural Gas XNG- Number one in overall Sector rank. It is Winter. A bit overbought here
and I would be taking some profits.
Gold XAU- another leg up last week. Gold is doing better than the mining Companies.
This is a volatile situation. Have fun while you can but don’t bet the farm.
Ultra ETF’s- Holding Bullish Russell UWM, Bullish NDX QLD and Bullish Financial
UYG.
Wireless WMH- Research in Motion RIMM is the leader here.
Banks BKX- Our BBT holding is doing great. Friday afternoons rally showed how much
money is on the short side of the Banks and Monoline insurers. It won’t take much to
scatter these Bears. Bernanke could have done it any day in the last three months just by
acting like he is working on a solution. I think a part of the problem is the Banks are in
trouble and the Banks are spewing out the negative news on the market - not just the
Mortgage market but the whole economy. The excesses of the Housing market bubble will
be popped. Banks who lathered themselves in fancy Mortgages with high fees and little
money down will take a big hit. So be it. Can we have Glass Steagel back? How about a
knockout punch from Capitalisms Invisible hand?
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