SectorVue weekend comments for Monday of July 20th , 2009
One Giant Leap
The Dow Jones blasted up 597 points while the NDX gained 64 points maintaining its
lead of broad based indices. The Volatility index VIX is sinking below 25 indicating
greater comfort among investors.
Sector Action for the week was plus 2909 with all Sectors up. These are very robust
numbers to the upside. Our Market Barometer bounced back from oversold territory last
week. We got the bounced indicated by our daily numbers last week.
Rydex Alerts- Nice profit on Bullish Russell and NDX last week. Repurchased Bullish NDX
looking for more upside this week.
Short term Trading indicator- Overbought
Market Breadth - Broke out last week as the market steps up to test the upper end of the trading
range.
INTERMEDIATE TERM TRENDS- Neutral to Bearish.
INTERMEDIATE OSCILLATOR - Bullish
Short term numbers are a bit overbought but with Cumulative Market Breadth breaking out the
herd is in blast off mode. Once we get above Dow 8800 Dow 9000 is the obvious destination and
we can get there in a hurry.
Semiconductor SOX- Tops in overall rank with Intel INTC earnings boosting the entire
market last week.
Technology TXX - steady in the top ranks. Apple AAPL and Google GOOG are leading
the pack.
Ultra ETF’s- BGU and TWM are tradeable for a few points each day.
Cyclical CYC - In the top ranks as investors anticipate a turn in the economy - or at least
a bottom. US Steel X, Fedex FDX and Caterpillar CAT are finding support.
Pharmaceuticals DRG and Healthcare IHF, IHI- Fell in rank as the new healthcare plan
is as clear as mud. There will be some bargains here as the rumor mill churns with
winners and losers.
Internet DOT - Up big in relative rank as our Adobe ADBE holding and Google GOOG
lead the way.
Retail RTH- dug itself out of the bottom ranks which is a turn in the right direction.
Housing HGX and REIT’s- dead last in overall rank. The Housing index HGX broke the
short term down trend but has not rallied in relative rank yet.
SectorVue and Rydex alerts are for educational purposes only and do not constitute 'investment advice'. No
representation is made that strategies will produce a profit.
There is risk of loss in all trading.
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