Gobble Gobble
The market found some support last week with the Dow Jones eeking out a gain of 134
points and the Nasdaq NDX bouncing back 14 points. The last few weeks has been the
kind of price break we are accustomed to seeing in October. This week we will see if the
support we found last week can hold up to a Housing report and Black Friday for the
Retail Sector.
Sector Action for the week was plus 685 with 12 sectors up and 20 down. Dow Theorists
may be a bit confused as Utilities are on top of our ranking while Transportation is dead
last. It is time Bernanke puts an end to Mortgage liquidity panic. Acknowledging the FOMC
is there to calm the markets in crises would get us half way there.
Rydex Alerts- Holding Bullish Russell. Would like to pick up some Bullish OTC/NDX.
Short term Trading indicator- Oversold Buy
INTERMEDIATE TERM TRENDS- Down
INTERMEDIATE OSCILLATOR - Oversold Buy Monday Nov. 12th
Utilities UTY - Number one in overall rank maintaining its relative strength.
Ultra etf’s- You must use these bullish and bearish etfs to manage current volatility.
Bullish NDX found some support last week but also had a range of 9 points for nimble
traders. Bullish Financial UYG bounced from $45 to $53 and back again. Given the
financial storm and leadership of the NDX these two stocks are the focus for traders this
week.
Oil Patch XNG, OSX and XOI - Sinking in relative rank the Oil Patch is fading as the $100
price nears. I suspect another bounce in these sectors but I will be looking to take profits
and even short.
Retail IRH- Moved up the most in relative rank which is good sign just before the holiday
shopping season. CVS continues to make relative highs. Teen stores Aeropostale ARO
and American Eagle AEOS have been steady. Target TGT has been slipping and needs
to revive sales this week.
Airlines XAL- Trying to lift out of the bottom ranks. AMR is our top buy.
Housing HGX- Still mired in the mud of the lower ranks this sector keeps sinking. Recent
predictions expect another 15% price reduction over the next few years. The housing
stocks should bottom out before the housing market does.
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