I’ll Be Watching This Sector Closely
The most important occurrences of Thursday and
Friday’s action:
The S&P 500 held its 50 day moving average…and
to the penny.
The NASDAQ had a late follow-through day on
Friday. Volume did pick up. The NASDAQ has been woefully underperforming but
can play catch-up in a hurry if it wanted to. As of this second, it is still
trading below its 50 day average…while the NASDAQ 100 remains weaker than
the NASDAQ.
The SEMICONDUCTORS followed through on heavy
volume Friday. Never underestimate the leadership qualities of the SEMIS. As
always, I will be watching them closely.
The NYSE actually hit its yearly high on Friday.
The RUSSELL 200 broke back above its 50 day avg.
It has been an interesting start to this year to
say the least. I guess you can call this year “famine or feast” with no
in-betweens. The most important characteristic that I like is that there are
both sides to play. While many areas are acting well, I am still finding a ton
of good looking shorts…even with the recent better action. I have a
suspicion we will get more upside testing here but the tape will remain split.
Gary Kaltbaum