Shopping anyone?
The market rode the roller coaster last week. The Dow Jones had a range of 500 points
with several 200 point intraday swings finishing the week down 211 points. The Nasdaq
NDX had a mind of its own gaining 19 points. Get used to the increased volatility. Better
yet learn how to profit from some of these moves.
Sector Action for the week was minus 685 with 11 sectors up 21 down. China CZH and
Gold XAU are in steep uptrends while Semiconductors are in a downtrend albeit
oversold.
Clearly the markets did not like the FOMC comments from Wednesdays meeting. Call this
strike two for Bernanke. They need to get ahead of the mortgage reset curve and they
need to view higher oil prices as a cost not inflation. Inflation is too much money for too
little goods. There is no money for mortgages now and increased gas prices take money
out of consumers pockets. The conundrum is the Malls are filled with shoppers. Obviously
buying iphones and other iitems.
Rydex Alerts- Flip flopping with the daily changes now in bullish OTC.
Short term Trading indicator- Oversold
INTERMEDIATE TERM TRENDS- Flat only the NDX is still in an up trend.
INTERMEDIATE OSCILLATOR - A bit oversold with a buy Signal October 22nd.
Natural Gas XNG - Number one in overall rank.
Ultra etf’s- You must use these to manage current volatility. Currently holding Bullish
NDX QLD, Russell UWM, Utility UPW , bullish Basic Materials UYM ,Semiconductor
USD and Bullish Oil Service DIG.
Utilities UTY - In the top ranks and holding tight. Combination of falling interest rates and
decent economic growth is good for this sector.
Oil Service OSX- Found some support after a slight pullback. This has been one of the
leading sectors all year and will likely benefit from year end window dressing.
Semiconductors SOX- Extremely oversold. I like the Bullish Ultra Fund USD. This
sector is starting to pop on up days.
Cisco CSCO- The tech sector bellwether for this week.
Banking BKX- Dead last with the subprime monster still gobbling up earnings. A reset
solution needs to be found quickly.
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This report is for educational purposes only and does not constitute "investment advice".
