Go Google !
Last week the Dow Jones gained 523 points while the NDX rallied 101 points. Intel and
Google earnings plus expiration week fuel powered the market to a breakout top.
Sector Action for the week was plus 1293. Only 2 Sectors were down while 29 managed
a gain. The Market Barometer pushed into Bullish territory on the move.
A little excitement with lower interest rates setting a floor and boosting earnings -
particularly in companies with overseas sales.
Rydex Alerts- flipping from bullish to bearish about every third day. Took profits on bullish
Russell and put a partial bearish Russell position on at the close Friday.
Short term Trading indicator- Overbought with some room at the top. A nice expiration week pop
last week.
INTERMEDIATE TERM TRENDS- Bullish. Volatility VIX is in a steep down trend.
INTERMEDIATE OSCILLATOR - Blasted into Bullish territory last Wednesday.
Technology TXX- Number one in Sector rank with a strong emphasis on Google GOOG.
In fact Google was a big boost to the NDX, OEX and SPX last week. The stock was up
19% Friday but is still down 22% year to date.
Cyclical CYC- Into the top ranks led by Caterpillar CAT, Eaton ETN, Honywell HON
and Ryder R. Nothing like a weak dollar to boost sales and earnings.
Oil Patch OSX and XOI- All in the top ranks. My sense is this is a momentum play which
may end soon and sharply.
Ultra ETF’s- Some nice trades last week. Flat now.
Housing HGX- Fell off in relative rank. This sector may be ripe for shorting again.
Financials BKX, KCE and XBD - Still stuck in the lower ranks which is foreboding for the
overall market as we have never seen a sustainable rally without participation from the
Financials.
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