SectorVue weekend comments for Monday of July 27th , 2009
Tree Tops
The Dow Jones stepped up another 349 points and the NDX gained 71 points despite a
drop in Semis. The Volatility index VIX is looking cheap at 23.
Sector Action for the week was plus 662 with 34 Sectors up and 1 down (Defense DFI).
A little momentum goes a long way. Our Market Barometer is now pegged at
overbought.
Rydex Alerts- Nice profit on Bullish NDX last week now holding Bearish Russell.
Short term Trading indicator- Overbought !
Market Breadth - Liquidity is rocket fuel.
INTERMEDIATE TERM TRENDS- Back to Bullish
INTERMEDIATE OSCILLATOR - Sky High
It feels like the individual investor and the Mutual fund herd is buying back in after selling at the
lows in March. It is just as dangerous to buy now as it was to sell then.
Biotech BTK- Tops in overall rank with Human Genome HGSI and Celgene CELG
gapping up last week. Good economy or bad the ‘cure’ is always a good thing.
Technology TXX - Microsoft MSFT took some wind out of the sails. If Apple AAPL
stumbles look out below.
Ultra ETF’s- BGU and TWM are tradeable.
Semiconductors SOX - Dropped out of the top ranks. Time for profit taking in Tech.
REIT’s and Housing HGX- Found some support from good earnings reports but still in
the lower ranks. The next few months will tell the tale in the home market. Personally I
think there is another notch down in the upper price ranges.
Banks BKX- The chosen few are doing well like JP Morgan JPM. Commercial Real
Estate is the next shoe to drop.
Gold XAU- Fell into the lower ranks. Looking to take profits on Kinross Gold KGC. The
drop in rank could be lack of inflation or China slowing which means the worldwide
economy slowing after the initial injection of liquidity.
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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