Suspended Animation
The Dow gained 51 points while the Nasdaq 100 NDX slipped 23 points. 21 sectors were up and 13 were down. Action for the week was minus 391. Another quiet week when Friday tips the scales. Last week the tech sectors got dumped after being pumped up before Intels mid-quarter report.
Despite negative action over the last two weeks market breadth is still positive as are most trends. It almost feels like the Bears are swimming upstream. No doubt the market is in a precarious position with our oscillators topping out and giving sell signals however an uptick or ‘turn around Tuesday’ will make the charts look bullish. The economy is plodding along. The only big concern is Greenspans interest rate stick.
Rydex funds- In a long position on the NDX and the index is at the lower end of the recent trading range so we may add to this position Monday.
Short term - Oversold
INTERMEDIATE TERM TRENDS
NDX, DJIA & SPX Up
INTERMEDIATE OSCILLATOR
Overbought Sell May 6th
A battle between the up trend andthe oscillators.
Gaming SGV- Still the top ranked sector. WMS Industries WMS,Argosy Gaming AGY and Gtech GTK are the leaders. We own Boyd Gaming BYD and Shuffle Master SHFL.
Natural Gas XNG- The index is hitting a relative high and managed to climb up in relative rank last week. EOG. Burlington Resources BR and Nicor GAS the leaders. XTO is playing catch up.
Networking NWX- The highest ranked technology sector led by Emulex ELX and Anixter AXE. Foundry FDRY is ripe for a move.
Broker Dealer XBD- Moved up in overall rank which is a very good sign for the market overall. We have never seen a major decline while these stocks are moving up. AG Edwards AGE is steady and we added to our Goldman Sachs GS stock last week.
Airline XAL- Dropped again in overall rank last week. These stocks are Sells.
Telecom XTC- Nextel NXTL, Alltell AT and Sprint FON are hitting relative highs.
Verizon VZ is a steady dividend total return play.
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