March Madness
The Dow Jones finished up 410 points for the week while the NDX gained 38 points.
Institutinal index XII and SP100 OEX were the top performing broad market indices. We
certainly bounce back from panic mode and also shed the Commodities surge.
Sector Action for the week was plus 22. The Market Barometer started up on St.
Patricks day and ended the week in the green.
Last week felt like a change in the tide or the flow in the basketball game when a team
takes charge in the stretch. We are up nicely on recent blue chip stock purchases like GE
and BBT which makes us feel comfortable buying some more good stocks. Given the
market volatility we have experienced the road ahead will not be smooth sailing. In fact it
is best for very short traders and very long term investors.
Rydex Alerts- Bullish NDX and Bullish OTC.
Short term Trading indicator- Bullish with confirmation from positive market breadth.
INTERMEDIATE TERM TRENDS- Bearish
INTERMEDIATE OSCILLATOR - turned up Monday St. Patricks day.
Alls well that ends well and Thurdays rally was impressive in keep the Bears at bay for the long
weekend.
REIT’s- Number one in Sector rank responding to lower interest rates and some thought
the mortgage mess may be limited to single homes. Not likely but a thought.
Banks BKX- Straigt to the top ranks benefitting our BBT and UYG holding. At least
Bernanke has begun to fight back against the meltdown.
Ultra ETF’s- Bullish NDX QLD and Financial UYG
Broker Dealers XBD- Fell off from the BearStrearns BSC $2 bid but now boosted by
higher offer.
Utility UTY- Finding support as interest rates sink and Utilities look like a defensive
sector.
Oil Patch XNG, XOI, OSX and Basic Materials XLB- All took a tumble from the
overbought condition we warned of in previous week.
Dow Jones DJIA- Top of our expection range is about 12,990. If we start heading that
direction early this week expect a short covering surge to that number.
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