Dicey
The Dow finished the short week down 81 points while the Nasdaq 100 NDX slipped 5 points. 22 sectors were up and 12 were down. Action for the week was minus 344. The down day Friday tipped the scales last week. Most of the indices and sectors we follow are in up trends. The market is also overbought short and intermediate term. If the market is going to break out from here it has to do so this week. In fact Monday is critical and the damage done on Friday must at least be stemmed and needs to be reversed soon.
We said last week the character of the market had changed dramatically over the last few weeks. The Nasdaq 100 NDX is still on top of the broad based index but leading growth sectors like Biotech and Technology have run into heavy profit taking and dropped out of our top ranking. On a more positive note the Broker Dealer XBD made it out and up from the bottom ranking which negates a big drop in the market for now.
Rydex funds- In a long position on the NDX but could switch to short very quickly.
Short term - Overbought
INTERMEDIATE TERM TRENDS
NDX, DJIA & SPX Up
INTERMEDIATE OSCILLATOR
Oversold Buy April 18th
Now Overbought and close to a Sell.
Gaming SGV- The top ranked sector. We have said before this is an under owned sector but these are real businesses. We own Boyd Gaming BYD and also like Shuffle Master SHFL.
Natural Gas XNG-Up nicely in overall rank and into the top ten. Noble NBL and Questar STR are hitting new highs. Our XTO holding has a good start.
Biotech BTK- Ran into heavy profit taking last week which is easy to do with the big run up they had over the last month. Also the BTK followed the DRG up and is now catching down to the DRG. This will set up a buying opportunity for both in the next few weeks.
Utiltity UTY- Rallied in overall rank into the top ten which is a function of expected steady interest rates and solid if slow economic growth. Many of these stocks are near yearly highs. Duke DUK pulled back a bit with the merger and is our strong buy in this sector.
Technology TXX- This sector dropped into the middle of the pack. Nothing short of a
bounce back into the top rankings will carry the market up from here.
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This report is for educational purposes only and do not constitute "investment advice".
