Cruise Control
The Dow gained 113 points and the Nasdaq NDX gained 11 points. Action for the week
was plus 137. 25 Sectors were up while 9 were down. Commodities and Interest rates
are still expecting a recession. Stocks, led by the Housing sector, are expecting
Goldilocks. Our Intermediate indicator topped out in late October. Short term momentum
measures have tipped Bearish for the first time in months. Santa Clause is on the way but
we may find a lump of coal in the stocking.
Growth sectors continue to run into profit taking. Retail, Biotech and the technology
sectors are in the lower rankings. The Oil Patch is in the top ranks. With trends flattening it
is all about buying low and selling high.
Rydex funds- Long the Dow Jones looking to sell into a rally this week. This market is on a
razor thin edge flipping back and forth.
Short term - Overbought
Tradewind tipped Bearish
INTERMEDIATE TERM TRENDS
SPX, NDX, Dow & SML -- UP
INTERMEDIATE OSCILLATOR - Overbought
High on October 26th
Has not entered Bearish territory since
bottoming in July and is overdue to visit.
Housing HGX- Still number one although these stocks are well below yearly highs. A nice
bounce over the last few weeks and a darn good time to take some profits.
Consumer CMR- Conagra CAG, McDonalds MCD and Disney this are the leaders
making yearly highs.
Financials XBD, KCE, BXK and KIX- Clamored out of the bottom ranks hoping Bernanke
will tone down inflation expectations.
Oil Patch OSX, XNG, XOI- In the top ten which is usually not good for the rest of the
stock market sectors. Oil keeps hovering around $60 refusing to drop below $50. We took
profits on Weatherford WFT last week.
Semiconductors SOX - Dropped back into the bottom ranks with Xilinx XLNX
announcement the upcoming quarter would be on the slow side. This takes Semis out of
the leadoff spot for any rally going into the New Year.
Gold XAU- Fell in overall rank. We took profits in Goldcorp GG last week.
Pharmaceutical DRG- Stuck in the muck. We are buyers of Schering Plough SGP.
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