SectorVue weekend comments for Monday April 18th , 2011
Market Location and Horizon
Daffodils
The Market bounced once again keeping our Diamond Jim indicator from entering
bearish territory. Income GPS portfolio is up 6.08% in appreciation plus an average
dividend of 10.83% as we sold some stocks booking portfolio gains in 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. Our Market indicators are neutral. This week could be decision week
for the second quarter. 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 bounced after the
expected sell off. The Growth vs Value ratio (page 12) also bounced back and is
favoring Growth over Value by just a tad bit giving the Bulls a glimmer of hope.
Email incomegps@unrulydog.com for a sample of our high dividend paying stocks.
The Dow Jones finished the week down 38 points while the Nasdaq 100 NDX fell off
13 points. The Volatility VIX index is extremely low and sinking as if no risk exists. Given
the penchent for Bernanke and Co. to support the market on any dip risk is masked.
Sector Action for last week was minus 516 with 10 Sectors up and 25 down . The
Market Barometer is hovering above bearish territory (see graph on page 4)
Rydex Alerts- Took profit on bearish Russell moving to all cash on Thursday.
Short term Trading indicators- oversold bounce
Market Breadth - Cumulative Market Breadth turned back up after the quick sell off.
(see top right graph p 4)
INTERMEDIATE TERM TRENDS- Neutral
INTERMEDIATE OSCILLATOR - Neutral
We got the expected pullback and support came in to prevent the market from entering
Bearish territory. Several more ecnomic indicators this week including housing and jobs
reports will tell the tale. Investors are left in the lurch this week and perhaps more eager to
enjoy Spring Break than guess which way the market coin will flip next.
Biotech BTK - Top of the Sector rankings led by the Amylin AMLN Biogen BIIB and
Dendreon DNDN
Gold XAU- has decidedly topped out in rank and we took profits on our Goldcorp GG.
Change in rank has been the lead indicator for gold stock trading.
REITs IYR -Into the top ranks and valued the same regardless of underlying assets or
financing. Seems like a rush to yield with out consideration of fundamentals.
Ultra ETF’s- Ultra SP500 ETFs SSO and Bearish NDX QID are trading vehicles with
nice daily ranges.
Defense DFI- Fell into the lower ranks on rumors of budget cutting. Stocks like
Raytheon RTN are good buys on the dip.
Housing HGX- No place for your largest asset with some predictions for another 15%
drop in home prices this summer.
Technology TXX-Apple AAPL is surprisingly weak and breaking support levels every
other day. The relevant question here is -- What percentage of Apple customers have a
positive net worth?
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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