SectorVue weekend comments for Monday December 7th , 2009
Let it Snow
The Dow Jones finished up 22 points, the NDX rallied 9 points while the Russell index
RUT gained 14 and had the best Action of the broad based indices. This is a pivotal
event at this time of year as we look for signs investors are moving from blue chip
stocks to small cap growth stocks.
Sector Action for the week was plus 419 24 Sectors up and 11 down. The Market
Barometer bounced from Neutral back into bullish territory and we purchased some
stocks for the Growth and Sector portfolio.
Rydex Alerts- In Cash
Short term Trading indicators- Neutral
Market Breadth - Cumulative Market Breadth broke out to a new high which may be confirmation
the Santa Claus rally has begun.
INTERMEDIATE TERM TRENDS- Bullish
INTERMEDIATE OSCILLATOR - Rebounded
The only way this market has more upside is to rotate to small cap growth stocks which have been
left behind in the dollar driven international blue chip rally. Most of these stocks have higher growth
rates and profitability. Some are flush with cash and have been able to take advantage of the last
years tough economic times to take market share.
Utility UTY- Top ranked however these stocks are overbought and the Sector had
negative action. Time to take profits and trim positions here.
Semiconductors SOX- Rallied into the top ranks as we thought it might. Several stocks
have done well. We bought Xilinx XLNX.
Gold XAU - Fell off in rank and price as we expected based on our numbers - and there
should be further gaps down ahead.
Ultra ETF’s- SSO and TWM are tradeable although daily ranges are thinning.
Internet DOT- Moved up in rank led by Amazon AMZN. Recall when Jeff Bezo’s was on
the cover of Time Magazine as Man of the Year which in hindsight signalled the end of the
Dotcom era? He has survived and then some. Apple AAPL and EBAY are lagging.
Broker Dealer XBD, Housing HGX and Banks BKX- no rest for the weary and no signs
of life yet from these sectors who appear stuck on life support. The quicker some are
allowed to fail the faster the successful and responsible players (and their markets) will
rebound. With these Sectors in the tank it is very difficult for the overall market to make
headway which puts more pressure on the small caps to show their stuff in the coming
week.
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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