Happy Birthday USA
The Dow gained 5 points while the Nasdaq NDX slipped 9. 21sectors were up and 13 were down. Action for the week was plus 785. The market is sluggish but action and most trends are positive. The Midcap MID and Smallcap SML indices are both very strong.
This market wants to go up despite higher oil prices and Greenspans interest rate hammer. The only sectors that have not kicked in yet are the technology sectors. There are plenty of stocks hitting new highs in this sluggish market.
Rydex funds- Still in a long position on the NDX.
Short term - Oversold
INTERMEDIATE TERM TRENDS
NDX, DJIA & SPX Down
INTERMEDIATE OSCILLATOR
Oversold June 27th
We will see if the Summer rally can find its footing this coming week.
Utility UTY- Moved up to the top rank which is a vote for growth that outpaces interest rate increases. We still like Duke Power DUK. Many others like Southern Co. SO and American Electric Power AEP are also hitting yearly highs.
Broker Dealer XBD - Number two in overall rank which is still good for the market. We still rate Goldman Sachs GS a strong buy.
Biotech BTK- Up nicely for the week led by Enzon Pharmaceuticals ENZN, Affymetrix AFFY and Human Genome HGSI.
Defense DFI - Dramatically rose in relative rank into the top ten rankings. Steady earnings locked in by long term Government contracts are the attraction to the stocks. ITT, DRS Technology DRS and Esterline Technology ESL. The big companies like GE are laggards in this sector as investors favor smaller companies where big contracts hit the bottom line with a bigger impact.
Software GSV - Amdocs DOX is on the move again.
Transportation IYT- The airlines look like they have found support again. American AMR and Southwest LUV are generally our top choices. The Rails have been quiet for awhile but look for them to rally if the economic numbers show strength from here.
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