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[TTHQ Staff]

SectorVue weekend update for Monday of May 4th , 2009 What Recession? The Dow Jones gained 136 points while the NDX gained 23 points for the week. Commodities had the best action while Volatility VIX slipped a bit. Actual volatility - intra day and daily swings has slipped a bunch more. Portfolio insurance is getting cheap. Sector Action for the week was plus 191 with 27 Sectors up and 8 down. The market is expending a lot of energy for not much movement. Our Market Barometer made a double top with highs registered on April 16th and Friday April 24th. Rydex Alerts- Holding Bearish Russell. Short term Trading indicator- Market breadth is overbought but has been very persistent to the upside. Any change here is likely to be exaggerated. INTERMEDIATE TERM TRENDS- Bullish. Tradewinds/ momentum have rolled over. INTERMEDIATE OSCILLATOR - Overbought. The market is hovering at recent highs which are not yet to the top of the ravine, Dow 8300, where it fell off from in February. Economic reports continue to indicate deleveraging or a ‘step down’ in the economy. This is not a recessionary pullback but resetting at a lower non-leveraged level. In other words the world economic activity bucket has gotten smaller. We have fixed some of the liquidity leaks but the smaller bucket will fill up and overflow faster Networking NWX- Number one in overall rank but now overbought with negative Action. Take profits on these stocks. Agriculture MOO- Spiked up in relative rank and price. We have traded this a few times and it is persistently strong. Looking for a pullback this week. Housing HGX - Fell out of the top sectors with heavy profit taking and perhaps some short selling again. Ultra ETF’s- Bearish Financial SKF and Russell TWM are still the trading vehicles of choice short and long. Banks BKX- Tanked ahead of the doctored and postponed stress test results this week. Utilities UTY - The best overall action last week but sill in the lower ranks. Value and dividend plays for sure. Software SWH- A leader for the last few weeks now a laggard. I see a lot of profit taking in the previous days or weeks big movers. Gold XAU - Last in overall rank and oversold. I see gold as a dollar or adverse world event hedge not an inflation play. Good for trades or Buy/Writes. SUBSCRIPTION INFO A sample copy of the entire SectorVue newsletter via email may be obtained emailing sectorvue@cox.net . Requests for a sample fax must include full name and voice phone number. Subscriptions are $500 per quarter for individuals $1000 per quarter for professionals. Rydex alerts priced separately. This report is for educational purposes only and does not constitute "investment advice".