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[TTHQ Staff]

SectorVue by David Schultz for September 4th , 2007 Back to Work The Dow finished the week off 21 points while the Nasdaq NDX rallied 27 points taking the lead of broad based stock indices. The Commodities index &AIG had the best action. Overall Sector Action for the week was plus 69 which belies the huge daily swings. 16 Sectors were up and 16 were down. August was volatile to say the least. Trading was thin enough once the see saw started to tilt there was no one on the other side to balance out the trades causing two 200 point days just last week back to back and back and forth. Market participants should be back to work this week and the market is at a crossroads. Can it find its footing and repair the damage done in August or does the bouncing superball continue? Throw in an FOMC meeting Sept. 18th and a data dependent Bernanke and traders should have enough fodder to feed on. Rydex Alerts- Bullish Russell and cash. Looking to take profits at the first sign the market stops going up. Last week was a great week for our Rydex trading taking profits and flipping from long to short Monday then taking profits on the Short Tuesday and getting long into the end of the week. Short term Trading indicator- Overbought INTERMEDIATE TERM TRENDS- Bearish INTERMEDIATE OSCILLATOR - OverSold Buy August 16th. Defense DFI - Number one overall but with negative action. I would be taking profits in this sector. Technology TXX- leading the bounce back as investors avoid financial sectors and move into Technology. We have a nice profit in the Ultra Bullish Tech etf ROM. Disk Drive DDX -Western Digital WDC hit a yearly high last week and Sandisk SNDK is rebounding quickly. Hopefully we can squeeze some more out of this trail blazing sector. Basic Materials XLB- Our Ultra Bullish Basic Materials ETF UYM is still moving up. If this sector crosses into Bullish territory it will be a sign recession fears are muted. Financials XBD, KCE, BKX- In the bottom ranks flopping like a fish on the deck. The liquidity fix does not change the longer term picture as the mortgage bubble bursts. This is a reminder of why Bernanke must fight inflation and keep bubbles from occurring. Housing HGX- Last in our Sector rankings. The math is simple - interest only loans caused housing prices to burst at the seams. The easy money is gone and prices should give back about half the recent gains. Volume dries up first then sellers realize the market has changed. This should be a 2 or 3 year process. 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".