Super
The Dow ended the short week up 9 points while the Nasdaq NDX gave up 48 points.
Action for the shortened week was minus 479. 18 Sectors were up while 16 were down.
The Commodities Index DJAIG has made a definitive bottom and along with strong
Cyclical stocks CYC are saying there is little risk of recession. The bond market agrees
as Thirty year rates TYX are up a good bit in the last few weeks straightening out the
inverted yield curve.
Our market indicators had a rest stop last week but appear to be on the road again. Sector
rotation points to core economic growth with Retail, Cyclical, Consumer and
Pharmaceutical all in the top ranks. Financial sectors are the same leaving Technology to
recover from slipping on the banana peel last week. A better bellwether will be the small
cap Russell index RUT which has lagged other broad based indices but should pick up
given the very positive breadth figures in the New Year.
Rydex funds- In Cash waiting to buy the next dip. Will likely pick up some of the Bullish
Russell fund.
Short term Trading indicator - Hit its head on the ceiling then recovered a bit Friday and
staying in bullish territory.
INTERMEDIATE TERM TRENDS - SPX, NDX, Dow & SML -- Flat
INTERMEDIATE OSCILLATOR - Rising avoiding a dip into Bearish territory for the time
being.
Retail IRH- Number one in overall rank led by Target TGT, 99 Cents NDN and
Aeropostale ARO. Hard to argue with this kind of leadership.
Cyclical CYC- This index looks like we are entering a very robust economic period.
Johnson Controls JCI, Goodyear Tire GT and US Steel X are leading this sector. I
guess you could say this is where the rubber is meeting the road.
Airline XAL- A real nice run. Take profits in these stocks!!
China CZH- Took a breather now headed up again. Yanzhou Coal Mining YZC and our
old Sina SINA holding broke out to new highs last week. We need to get back on this bus.
Oil Patch XNG, OSX, XOI - Unless oil is going into the twenties again these stocks should
and will make money. No need to chase but have a buy list handy for dips.
Gold XAU- If the worldwide economies are moving up so will this worldwide store of
wealth and value. Goldcorp GG is our buy in this sector.
Technology TXX- Last weeks tech wreck on stellar earnings was a bit odd. There are still
some winners like Xilinx XLNX and Taiwan Semi TSM. Buy the dips not the hype.
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