Street Smarts
The Dow gained 143 points making a new high with every up day. The Nasdaq NDX
rallied only 4 points. The Dow Jones and NDX had negative Action for the week. The
Russell index RUT continues to lag. Overall Sector Action for the week was plus 160.
29 Sectors were up while 5 were down.
The Dow Jones continues to make headway every day leaving the other indices further
behind the pack. This will be resolved either by a strong rally in the Russell index RUT or
a correction in the Dow Jones. Market breadth (advancing minus declining stocks) holds
the key.
Rydex Alerts- Short Russell. Something has to give here.
Short term - Overbought awaiting confirmation from negative breadth. Momentum is also
waning.
INTERMEDIATE TERM TRENDS- Bullish
INTERMEDIATE OSCILLATOR - Very Overbought in High Risk territory.
Volatility VIX is low making Puts for portfolio insurance cheap.
Defense DFI - Number one with a big jump in price and relative rank last week. Alliance
Tech ATK and Armor Holdings AH are the leaders.
Internet DOT- Into the top ranks with good earnings from Amazon AMZN and Microsoft /
Yahoo YHOO takeover talk. Google GOOG is still the bellwether for this sector and it well
off recent highs.
Networking NWX- Dropping in rank ahead of Cisco CSCO earnings this week. Probably
a good idea to take some profits here.
Broker Dealer XBD- Finally moved out of the bottom ranks cheered by new highs on the
Dow Jones. I am not sure trading volume or the yield curve is adding much to profits.
Biotech BTK- We took profits in Affymetrix AFFY last week. Biotechs have had a nice
run however the drop in relative rank indicates others are taking profits in this Sector as
well.
China CZH- Settling into our lower ranks which means institutions are taking money off
the table here. Take profits while you still have them.
Disk Drive DDX - Dead last while Semiconductor SOX is in our top ranks. We took
profits in the bullish Semi ETF USD and suggest you do the same.
SUBSCRIPTION INFO
A sample copy of the entire SectorVue newsletter via email may be obtained emailing sectorvue@cox.net .
Requests for a sample fax must include full name and voice phone number. Subscriptions are $500 per
quarter for individuals $1000 per quarter for offices. Rydex alerts priced separately.
This report is for educational purposes only and does not constitute "investment advice".
