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#1 TTHQ Staff

TTHQ Staff

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Posted 14 April 2011 - 12:11 PM

SectorVue weekend comments for Monday April 11th , 2011 April Showers? After a bouncing up from oversold levels the market became overbought and indicators are now headed down. Our Diamond Jim indicator topped out and is headed for a test of bearish territory. Income GPS portfolio is up 6.08% in appreciation plus an average dividend of 9.8% as we finish up the first quarter of 2011. Our objective is to keep our principal safe and even growing a bit as we collect hefty dividends keeping one eye on the weather vane to protect against market squalls. With adverse headline news petering out the market appears tired itself. The diversified IncomeGPS is going strong and steady. March was a good month for collecting dividends and some stocks announced dividend increases which is an extra bonus. (see pages 5 and 6) This is how the total return tortoise beats the high growth hare in portfolio returns while minimizing portfolio volatility. The Prevailing Wind indicator is headed South after a strong gust to the upside. If this indicator turns bearish and more stocks are going down than up momentum traders will throw in the towel. The Growth vs Value ratio (page 12) also ran out of steam as investors take profits on growth stocks on the bounce and park money in defensive Value stocks. Email incomegps@unrulydog.com for a sample of our high dividend paying stocks. The Dow Jones finished the week up only 3 points while the Nasdaq 100 NDX fell off 21 points. The Russell RUT and Midcap MID indices had the worst action and appear to be topping out. Sector Action for last week was minus 683 with 13 Sectors up and 22 down . The Market Barometer is one down day away from triggering an overbought Sell. (see graph on page 4) Rydex Alerts- Bearish Russell with market measures overbought. Short term Trading indicators- overbought Sells Market Breadth - Cumulative Market Breadth has stopped going up and is also a down day away from triggering a Sell signal. (see top right graph p 4) INTERMEDIATE TERM TRENDS- Neutral INTERMEDIATE OSCILLATOR - overbought With negative news headlines getting stale the market appears toppy with short and longer term market measures either on or about to trigger a Sell signal. The plunge protection team continues to buy every dip and propping up market indices even as broad based market internals show signs of vulnerability. Biotech BTK - Top of the Sector rankings led by the Cephelon CEPH takeover and Human Genome HGSI. Usually the biotech Sector leads the Technology Sector and then the market higher however both are lagging. Biotech can go it alone with the next cure for the common cold or other independent events such as mergers. Gold XAU- Decidedly into the top ranks which is a sign of institutional accumulation. Our Goldcorp GG holding is up over 10% in just a few weeks. Pharmaceutical DRG -Into the top ranks led by Astrozeneca AZN. Nearly all of the stocks in this Sector are in slight up trends. Ultra ETF’s- Ultra SP500 ETFs SSO and Bearish NDX QID are trading vehicles with nice daily ranges. Cyclical CYC- Fell in overall rank with 3M MMM, Sears Holding SHLD and Hewlette Packard HPQ finding some sellers. Broker Dealer XBD- Still in the lowest rankings. We have rarely if ever seen the overall market make new highs with the brokerage stocks making recent lows. Technology TXX- Nothing but selling here as well with Apple AAPL breaking support. 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. This email is copyrighted material intended for the addressee only. SUBSCRIPTION INFO A sample copy of the entire SectorVue newsletter via email may be obtained emailing sectorvue@gmail.com. Requests for a sample newsletter must include full name and voice phone number. We do not share information with anyone. Subscriptions are $500 per quarter for individuals $1000 per quarter for professionals. Rydex alerts priced separately. This report is for educational purposes only and does not constitute "investment advice".