Go Lance
The Dow gained 145 points while the Nasdaq NDX advanced 42 points. The move for the week was encapsulated in Fridays rally. 32 sectors were up and 2 were down. Action for the week was plus 1661. Once again positive action has preceded the move in the market.
Who would have guessed the end reaction to a terrorist bombing in London would be a 200 point rally in the Dow? Financial market participants have had the fear of an attack in the back of their minds since 9/11. After the initial sell off investors look around and determined that an isolated attack will not affect the markets in the long term. There are extra costs associated with fighting terrorism worldwide. Perhaps Japan and France will get the message and start assisting more actively. From a price discovery point of view the market found support Thursday morning in the
midst of ‘the worst case scenario’. Seeing this investors feel more comfortable looking to the upside.
Rydex funds- Still in a long position on the NDX.
Short term - Oversold
INTERMEDIATE TERM TRENDS
NDX, DJIA Down , SPX Up
INTERMEDIATE OSCILLATOR
Oversold Buy June 27th
The Oscillator appears to be the most
accurate way to trade this trading range market.
Biotech BTK- Moved up to the top rank with nearly half of the stocks in this index at or near yearly highs. The BTK usually leads the Nasdaq up or down so there is hope for other “tech” sectors. For Biotechs themselves we would look at the leaders on dips.
Service GSV- Amdocs DOX looks like it wants to break out from here. Paychex PAYX, Anteon ANT and Fiserv FISV also look perky.
Retail IRH - Finally made it into the top ten ranking with a number of stocks hitting relative highs. This sector has been sneaking up over the last month only now showing up as a market leader. The list of strong stocks is long including Best Buy BBY, JC Penney JCP, Sherwin Williams SHW, Office Depot ODP, Urban Outfitters URBN, Tractor Supply TSCO, Zales ZLC, Mens Warehouse MW, Electric Botique ELBO, Aaron Rents RNT and Genesco GCO.
Housing HGX- Also in the top ten ranking with the home building stocks hitting new highs despite a general opinion they will hit the wall at some point.
China CZH- These stocks fell in overall rank. It seems like they will make some adjustment in the currency exchange rate soon.
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