SectorVue weekend update for Monday November 3rd, 2008
Jack be nimble...
The Dow Jones gave back 381 points for the week while the NDX slipped 63. Volatility
VIX is still on top of the ranking and the market is still showing extreme swings intra-day.
When you have a profit in a stock you have to take it quickly making this a traders market,
not an investors market yet.
Sector Action for the week was minus 428. 2 Sectors were up (XTC and XAU) and 29
were down. Our Market Barometer bottomed out on October 10th and is making
headway to the upside however I expect to see more bounce than direction over the
coming months.
Rydex Alerts- Sold bearish positions Thursday and picked up some bullish Russell.
Short term Trading indicator- bounced up to overbought Tuesday and dropped back to neutral
buy Friday.
INTERMEDIATE TERM TRENDS- Short term trends are positive while intermediate trends
are catching up.
INTERMEDIATE OSCILLATOR - Oversold - still rallying from the October 10th buy signal.
The markets have stopped going down but are still in a violent trading range. Making use of bullish
and bearish etf’s and high dividend plays are the way to go. Our numbers show we have put in a
major bottom.
Airlines XAL- Still number one in overall rank on lower fuel costs. Airline stocks have
never been good market leaders.
Banking BKX- fell off the shelf last week. Banks are still tightening credit for businesses
large and small which means the ‘bailout’ funds are not reaching the intended parties.
Ultra ETF’s- Traders market. These leveraged etf’s offer perhaps the only way to gain
ground in this back and forth market.
Telecom XTC- one of two sectors up for the week led by Verizon VZ. Investors are
betting cell phones are a modern necessity.
Gold XAU- the other sector showing a gain for the week. We picked up a gold stock but
view this sector as a trade until it enters bullish territory.
Broker Dealer XBD- Sank into the lower ranks with doubts about Goldman Sachs GS
survivability. We have never seen a sustainable market rally while this sector is in the
lower ranks.
Housing HGX- Dead last in overall rank. Still more squeezing to do in this sector. Housing
prices should drift down a bit more. At least one of the builders needs to disappear before
we can call a bottom.
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