SectorVue weekend comments for Monday November 2nd , 2009

Fall Back

The Dow Jones fell 259 points and the NDX fell 86 points as selling snowballed into the 
end of the week. The Russell index RUT is dead last and overall market breadth is 
bearish with more stocks falling than rising. Volatility VIX spiked up as traders hit the fear 
button. The Dow has fallen 400 points since we warned to ‘fasten your seat belts’ on 
Weds the 21st.

Sector Action for the week was minus 2090 with all Sectors down.  The Market 
Barometer gave us fair warning of the top and headed straight down since Oct. 19th.

Rydex Alerts- In Cash after taking some profits on the daily swings last week.

Short term Trading indicator-  Market Breadth Oscillator and Trading indicators are 
oversold.

Market Breadth - Cumulative Market Breadth is now in a confirmed down trend. This means we 
should be selling and not buying stocks.

INTERMEDIATE TERM TRENDS-   Neutral to negative.

INTERMEDIATE  OSCILLATOR - Topped out August 4th and again Sept. 16th and the third 
Strike on Oct 19th.

When more stocks are going down than up we call that a Bear Market. At the least the Bulls and 
Bears are taking a ‘look see’ as we finish this round of earnings and outlooks.

Retail RTH- Tops in overall rank which is normal this time of year. If retail rolls over from 
here this will be fertile ground for Shorts.

Internet DOT - This market peaked with Google’s GOOG earnings pop so Google is the 
number one wind sock for this market.

Oil XOI- Still in the upper ranks although the stocks are rolling over while the price of oil 
remains close to recent highs.

Ultra ETF’s- BGU, SKF and TWM are tradeable.

Agribusiness MOO and Cyclical CYC - fell off a cliff in relative rank which does not bode 
well for the economic outlook.

Utilities UTY- Underperforming and in the tank.

Housing HGX- Dead last in overall rank. Whenever someone says the economy depends 
on a recovery in housing I get a pang. Housing is recovering -- back down to were it 
should be sans bankers and politicians schemes. This bubble will not be near its end until 
people want to puke Real Estate. Jingle mail does not even prick the balloon. Happy ‘hot 
potato’ foreclosures is all we have seen so far. Some egocentric builders have tightened 
their belts but have not been taken to the woodshed yet.

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representation is made that strategies will produce a profit. 
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