SectorVue weekend comments
Monday of July 6th , 2009
Dandy
The Dow Jones gave up 157 points while the NDX slipped 34 points in the shortened
week. With indices closing near support Thursday Monday is a testing day.
Sector Action for the week was minus 842 with 1 Sector up (SOX) and 34 down. Our
Market Barometer topped out on May 5th at very overbought levels. Hanging around
Neutral territory which normally increases day to day volatility.
Rydex Alerts- flipped back and forth between Bullish and Bearish Russell last week ending
with all cash.
Short term Trading indicator- Market breadth indicator went to a SELL last Wednesday.
Market Breadth - Forming a double top?
INTERMEDIATE TERM TRENDS- Neutral to Bearish.
INTERMEDIATE OSCILLATOR - Neutral
Trading range is the rule. It is clear upward momentum has stalled. In fact Tradewinds are rolling
over and are now neutral to bearish.
Utilities UTY- Tops in overall rank as money moved into this defensive sector. Price is
rolling over and we still do not know how the latest ‘cap and trade’ will affect earnings.
Semiconductors SOX - The only sector showing a gain last week. The strongest sectors
during downturns are likely to lead the recovery.
Leisure & Entertainment PEJ- bounced into the top ranks as restaurants like YUM
gapped up. This sector is doing better than Retail RTH which is last in rank.
Ultra ETF’s- BGU and TWM are tradeable for a few points each day.
Internet DOT - Fell into the lower ranks as Google GOOG looks destined to test the $400
level having topped out at $447.
Banking BKX- .Not able to dig out of the bottom ranks. The market is differentiating
between those who have returned TARP money like JPM and those on life support like C
and BAC.
Housing HGX and Retail RTH- still dead last in overall rank. No signs of live here and
housing prices are likely to dip again as we are past the Spring busy season. Real Estate
is likely to be a drag on the economy for years to come.
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representation is made that strategies will produce a profit.
There is risk of loss in all trading.
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