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[TTHQ Staff]

SectorVue by David Schultz for June 11th, 2007 Baa Baa Black Sheep The Dow closed down 243 points and the Nasdaq NDX fell 22 points. Interest Rates TYX are still on top of the broad based index list and the business news headlines as of last week. I said last week this was a warning light for stocks. The Commodities index DJAIG had the worst Action last week as it appears the FOMC is in an inflation fighting mood. Overall Sector Action for the week was minus 2013 which was big enough to create an oversold bounce on Friday. 31 Sectors were up while 3 were down. Finally some relief from the ‘new high fever’. The next few weeks will determine whether we are stuck in a trading range and what level the range will be for the rest of the summer. Interest rates made headlines last week however we were very aware of the climb over the last several weeks as the TYX shot to the top of our broad based rankings. We now show interest rates are a bit high and should settle down over the next few weeks. A few soft economic numbers would be good for the bond and stock markets. Rydex Alerts- Took profits on the Short OTC and Russell position last week fliping to long OTC which has been outperforming on up days. Short term - Oversold Buy Friday - The Puts quadrupled last week and the Calls have doubled since Friday. INTERMEDIATE TERM TRENDS- Bullish INTERMEDIATE OSCILLATOR - Now in neutral territory. China CZH - Number one in overall rank. More resilient than I thought it would be Chinese stocks take a lickin’ and keep on tickin’. Keep an eye on Copper as a measure of the Chinese economy. Networking NWX- Rose to second in overall rank with some help from takeover activity. Regardless it is good to see a technology sector in the top ranks. Oil Patch XOI, XNG, OSX- Oil XOI back in the top ten. The Oil Patch will not go away. No need to chase the stocks here but it is obvious these stocks must be in your portfolio purchased on any dip. Basic Materials XLB- Took a hit as a slower economy is expected via higher oil costs and interest rates. Easy to take profits on Dupont DD and Dow Chemical DOW. Semiconductors SOX - bounced out of the bottom ranks. I am a buyer on any pullback using the Ultra Bullish ETF, USD. Biotech BTKand Pharmaceutical DRG In the lower ranks. This will be a good bellwether for institutional investing in the overall market. Simply it would be difficult for the S&P500 or Nasdaq to challenge recent highs without some improvement in these sectors. 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".

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