Bermuda High
The Dow gave back 10 points while the Nasdaq NDX gained 4 points. 20 sectors were up and 12 were down. Action for the week was minus 426 however most indices are in up trends. It is a positive sign the market is working off the overbought condition by standing still.
The only movers have been big movers over the last few weeks as traders key off earnings reports and run the stock up (or down) as the play for the day. We have taken a lot of profits on these run ups and are sitting on cash for the next go around.
Rydex funds- currently short the SP500 and long the NDX. Cash would be ok too.
Short term - Neutral
INTERMEDIATE TERM TRENDS
NDX, DJIA, SPX -- Up
INTERMEDIATE OSCILLATOR
Overbought Sell July 13th
Patience is the hardest thing for an investor to practice.
China CZH- Still the leading sector with the Yuan revaluation two weeks ago.
Oil patch XOI,OSX, XNG - The Oil patch as been the leading performer year to date
although investors are starting to bet on other horses like Biotech. Exxon Mobil XOM
came out with record earnings however the stock has been flat for a month and has failed to exceed Febrary highs. The earnings momentum is there but not the stock movement as institutions probably have a big enough position built up over the last two years.
Wireless WMH- Rallied to a top ten ranking with cellular stocks Nextel NXTL, Sprint
FON and US Cellular USM hitting yearly highs. Verizon VZ is near a yearly low with a
4.7% dividend which appears very attractive.
Broker Dealer XBD - Fell out of the top ten and is flirting with the bottom rankings as are Banking BKX and Investment Management SMQ. We took profits on Goldman Sachs GS last week. The XBD has been fairly strong YTD but seeing the financial sectors in the tank is not a good omen for the stock market !
Looking at the average rank year to date (page 4) Biotech is on top and Semiconductor SOX is also doing well. Investors are starting to place their bets on something other than Oil and Housing.
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About David Schultz
