No replies to this topic

[TTHQ Staff]

SectorVue by David Schultz for October 29th , 2007 Boo ! The market bounced back from its oversold condition last week with the Dow Jones gaining 284 points for the week and the Nasdaq NDX 63 points. We covered our short positions Monday and began establishing bullish NDX and Russell RUT positions at Rydex and using the Ultra etfs to take advantage of this normally bullish time period. Sector Action for the week was plus 1513 with 29 of 32 sectors up. The FOMC meeting on Wednesday may dampen some of the normal end of the month enthusiasm we have seen recently. Last week the blue chip Dow and S&P indices had the best Action. I would like to see the broader based Russell take the lead going into the New Year. This may be possible with a clear statement from Bernanke Wednesday. Rydex Alerts- Took profits on Bearish positions Monday flipped to Bullish OTC and Russell looking to take profits before the FOMC meeting. Short term Trading indicator- Oversold Buy INTERMEDIATE TERM TRENDS- Flat only the NDX is still in an up trend. INTERMEDIATE OSCILLATOR - Buy Signal October 22nd. Natural Gas XNG - Number one in overall rank with a seasonal price squeeze and take over talk. Ultra etf’s- We are averaging 5% profits with a 5 day holding period on these trades - Bullish and Bearish. Currently holding Bullish NDX QLD, Russell UWM, Utility UPW and Semiconductor USD which we purchased last week. Utilities UTY - Moved up the most in relative rank. Lower interest rates with a growing economy is the perfect pitch for this defensive sector. The leverage UPW is the way to play the bounce. Capital Markets KCE- Rallied into the top ranks leaving other financial sectors in the dust. Exchanges like CME are the lead dogs. Semiconductors SOX- Extremely oversold. I like Maxim MXIM but also the Bullish Ultra Fund USD. This sector must show some signs of life for the Nasdaq to carry the lead. Microsoft MSFT- With Mister Softee breaking out to a five year high on stellar earnings the Bulls have a star quarterback. The stock is up 25% from our August 16th buy point and is likely to close higher going into year end. It has been too long a wait for this horse to take the lead. 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".