All Over The Map

I
just have to start off by saying
that I am amazed at the cross
currents in the market right now. Groups are going in and out of favor in the
blink of an eye. This does not happen very often and reminds me of someone in a
dark cave without a light trying to find his way. One of the things I think I do
best is to measure the markets in relation to what they want to give an
investor. Right now,
it
is an uphill battle.
It
is simply time to play things close to the vest
,

as progress is very tough to make right now.

A few observations:

The number
of stocks gapping down has really picked up. Logic has always
dictated to me that it is an unhealthy technical sign.

One week, the Retailers
do well,
the
next week they are smashed.



One week,
Homebuilders
are acting poorly,
the
next week they come on strong

One week….you get the hint.


The major indices still are tracing out head
andshoulder
patterns.


Financial stocks have the best
looking setups in the market. Many have long
bases and are now coming up their right sides. A few have broken out. They are
slow movers though.

Pharmaceuticals
are toast with any rally sellable.

The same goes for Oil
Services
.

Just alloverthe-map
action. I would scale in pos
itions
on all breakouts and not try to be too much of a hero. Lastly, I know I have
said this before but I believe it still needs to be heard. Many pundits continue
to talk about the Fed coming to the rescue.
All major
indices are still below Jan
.
3 first cut. This really needs to be thought about. A sixth one is on the
way next week.
Let’s
hope 6 is a lucky number.

Have a great weekend and just for Carolyn…GO CUBS.