SectorVue by David Schultz for May 5th , 2008

Yahoo ?

Last week the Dow Jones gained 166 points while the NDX rallied 63 points. Yahoo’s 
shares spiked up Friday afternoon on rumors the Microsoft deal would get done over the 
weekend. It’s done - or should I say finished as Microsoft withdrew its bid. I will be 
interesting to see how far Yahoo falls on the open and how quickly the shareholder 
lawsuits are filed. 

Sector Action for the week was plus 166. 23 Sectors were up while 8 were down. The 
Market Barometer spiked up but is now a bit overbought.

Trading range is fine with my as is a little daytime volatility. It is interesting to hear the 
trend followers cheer on the rally each time it nears the top and the doomsayers browbeat 
after a down week.

Rydex Alerts- flipped to bullish Russell and NDX looking to sell Monday and likely flip to 
bearish

Short term Trading indicator- Overbought. Market breadth is the windsock to watch in this 
market.

INTERMEDIATE TERM TRENDS-   Bullish. Volatility VIX is in a steep down trend.

INTERMEDIATE  OSCILLATOR - Bullish territory last Wednesday.

Technology TXX- Number one in Sector rank with internet assets making the headlines. 
Yahoo may boo-hoo Monday.

Utility UTY- Into the top ranks with lower interest rates and a moderating economy.

Oil Patch OSX  and XOI- Falling off in rank and price once again. This trend is very long 
in the tooth. The down drafts have been more dramatic in recent weeks. Keep trimming 
these holdings.

Ultra ETF’s- Long bullish Financial UYG, Russell UWM and Basic Materials UYM looking 
to take profits in each of them early this week.

Housing HGX- Nosedive. The housing crunch is just beginning.

Financials BKX, KCE and XBD - Still stuck in the lower ranks.

Gold XAU - dead last in overall rank. No real support yet.

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