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.
SectorVue and Rydex alerts are for educational purposes only and do not constitute 'investment advice'. No
representation is made that strategies will produce a profit.
There is risk of loss in all trading.
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