Happy New Year
The Dow gained 120 points while the Nasdaq NDX tacked on 8 points at year end.
Action for the shortened week was plus 334. 32 Sectors were up while 2 were down.
The Dow Jones and other blue chip measures topped the charts last week however they
all had negative action. The Nasdaq NDX and Commodities DJAIG indices are trailing
off a good bit anticipating slow growth or recession.
Sectorwise the market needs some new leadership. The Oil Patch, Retail,
Semiconductors, Transportation and Biotech are all in our bottom ranks. If the market is
going to have another leg up one or two of these need to get in gear.
Rydex funds- Cash. December worked out well as trading back and forth yielded more than
5% gain.
Short term - Overbought but still with positive momentum.
We should get a bounce on the open Wednesday.
INTERMEDIATE TERM TRENDS -- SPX, NDX, Dow & SML – Flat and turning down.
Growth portfolio - 16 recommendations 11 winners 5 losses
for an average gain of close to 20%
Sector portfolio- 27 recommendations 21 winners 6 losses
for an average gain of 16%
Telecom XTC- Number one in overall rank rallying to a yearly high in the last few weeks.
Alltell AT, BellSouth BLS and Verizon VZ are the leaders. We took profits on Verizon a
few weeks ago.
Networking NWX- The only tech sector in the top ranks. We made some money on
Cisco CSCO and are up 10% on Ciena CIEN looking to take profits.
Broker Dealer XBD- Many of these stocks are near yearly highs yet the sector is in the
middle of our ranking. XBD rank is a good bellwether for the overall market and this week
could be thumbs up or thumbs down.
Transportation IYT- Dead last in our ranking which does not bode well for the economy
or the stock market. Airlines have perked up with merger activity but I would like to see
the railroads and truckers picking up some cargo.
Technology TXX- Apple AAPL gapped up last week carrying this index higher. The only
tech stock I have a buy on right now is Qualcom QCOM.
Oil Patch XNG, OSX, XOI - is falling into the bottom ranks even though oil is hovering
around $60bbl. The stocks put a drag on the S&P 500 while the price of oil puts a drag on
the economy. Keep your eye on this ball.
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This report is for educational purposes only and does not constitute "investment advice".
