Chart Courtesy of StockCharts.com
The Wilderhill Clean Energy Index looks to have run into resistance at 210, but could be starting to move higher along with the rest of the energy complex.
Chart Courtesy of StockCharts.com
Crude oil prices are back on the up swing, although remaining within the recent trading range, with resistance at the $65 area with $60 offering support.
Chart Courtesy of StockCharts.com
The Philadelphia Oil Service Index (OSX) is testing the 240 area, and its all time highs.
Chart Courtesy of StockCharts.com
The Amex Oil Index (XOI) is also testing its all time highs.
Chart Courtesy of StockCharts.com
Same Old Story
Stocks rallied on Friday last week, but the rally came on low volume, again suggesting that institutions are not big players. Of course, since many of these players are using "dark pools" as trading venues, volume is now a less reliable indicator.
So, we're stuck with price as the only truly reliable indicator. And price has been a fickle signal of late, with sector selectivity making it difficult to make calls about the overall market.
Thus, the market has found new ways to confuse, just as it always has, with its biggest goal still being that of making us all look foolish.
Lately, we've seen some improvement in the semiconductor sector, and a return of money into the energy sector.
Large drug stocks have also been showing some improvement as well, along with selected financial stocks.
Those are the areas where we are concentrating our attention for now.
In other words, this market remains a trading environment where paying attention to each individual position is the best strategy, rather than looking at the market as a whole on a primary basis.
For now, the up trend remains intact, but it is getting more and more sluggish with each unconfirmed new high in the Dow.
From a longer term stand point, based on historical trends, this should be a positive year for stocks, given the fact that it's the third year of the Presidential Cycle, which calls for rallies in the third and fourth years of a presidency.
Our long term forecast remains upbeat, unless the major indexes fall convincingly below their 200 day moving averages.
What To Do Now
Selectivity remains the key to success. Look for strength, either on a continued basis, or in turn around areas, such as the semiconductors.
Visit all our individual sections, both our ETF and individual stock picks daily for new ideas, and changes to open positions.
Be very methodical about monitoring portfolios, adhering to trading rules, and ratcheting up sell stops is clearly still here.
Second guessing decisions, and hoping that things will turn out o.k. in the long haul, is the recipe for disaster at a time like this in the market.
Check all our sections daily. See tech, biotech, Fallen Angels, and timing systems for the latest adjustments. Our ETF trading systems for energy, Spyders, Small Caps, and technology have also been updated.
Chart Courtesy of StockCharts.com
Chart Courtesy of StockCharts.com
3-M is a decent economic bellwether, as far as stocks go in predicting such things.
The stock topped out in May 2006, just as the U.S. Gross Domestic Product was starting to show signs of weakening.
In the last few weeks, as GDP has weakened, though, 3-M has started to rally, raising the question of whether the worst has been seen by the economy.
3-M is involved in just about every kind of economically sensitive business one can think of, from health care to manufacturing of office products and electronics.
The company has been streamlining its businesses of late, with some asset sales, while it is building a large number of global plants.
It's biggest bet is on a continuation of the rally in the global economy.
For now, the market seems to agree.
Chart Courtesy of StockCharts.com
Chart Courtesy of StockCharts.com
Chart Courtesy of StockCharts.com
Chart Courtesy of StockCharts.com
Small stocks are just keeping up with the market.
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