SectorVue weekend comments for Monday of June 29th , 2009
Thriller
The Dow Jones slipped 34 points while the NDX led with a gain of 4 points for the week.
Looking for a bit of a rally into month end and July 4th weekend.
Sector Action for the week was plus 74 with 16 Sectors up and 19 down. Our Market
Barometer topped out on May 5th at very overbought levels bounced up from Neutral
territory keeping the Bulls on the field.
Rydex Alerts- Took profits on the Bearish Russell flipping to bullish Russell last week.
Short term Trading indicator- Oversold Buy with confirmation from positive breadth late
last week.
Market Breadth - Hopped back on the uptrend.
INTERMEDIATE TERM TRENDS- Neutral to Bullish.
INTERMEDIATE OSCILLATOR - found support at neutral territory last week allowing us to
take some bullish positions.
Trading range is still the rule of the day. About 1,000 points on the Dow which could be 8000 to
9000 for the summer with adjustments made for economic reports. Big upside or downside appear
to be off the table which is one reason Volatility VIX is dropping quickly. With our short term
numbers on a buy we expect some bounce this week.
Biotech BTK- Ranked first overall which is good for Healthcare sectors and generally
leads the Nasdaq up as well. Amgen AMGN is our top pick in this Sector.
Utilities UTY- Holding up well as interest rates will be kept low in the foreseeable future.
These stocks are testing recent highs. Covered Calls look good.
Ultra ETF’s- BGU has been back and forth a point nearly every day.
Broker Dealers XBD - The survivors are starting to do well. We picked up Ameritrade
AMTD last week.
Banks BKX - Not participating as there is still some sorting out of good banks, bad banks
and zombie banks needed to be done. Citi C appears to be Chief Zombie. Bank of
America BAC seems to be on life support. Mortgage ARM resets do not peak for another
two years.
Defense DFI- falling off in relative rank as airplane and fighter jet orders are questioned.
Housing HGX and Retail RTH- still dead last in overall rank and we need to see some
signs of life here.
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