Indicators And Sectors That I’m Watching

April 8, 2003
Dave Landry

On Tuesday, the Nasdaq chopped back and forth.

The good news is that it did not show any meaningful follow
through from Monday’s mother-of-all-reversals.

The S&P also appears to have stabilized (for now).

The VIX hit multi-month lows and is beginning to
stretch away from its 10-day moving average.

Looking to the sectors, Internet appears to be coming under
distribution as of late (i.e., could be in the early phases of rolling over). The
semis were hit hard (on Tuesday) and remain questionable. Software remains in a
choppy trading range. On the bright side, retail is in corrective mode but
remains constructive. Generic drugs, various other drugs, health care plans, and
insurance remain generally strong and appear to have the potential to continue
their uptrends.

So what do we do? The fact that the indices appear to have
stabilized, at least temporarily, is a positive. However, the action in the VIX
suggests that we could be in for more corrective action soon. Add in more
cross-currents from an event-driven environment and once again, it suggests
that there is no reason to bet the farm.

Looking to potential setups, Speracor
(
SEPR |
Quote |
Chart |
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PowerRating), in the
strong generic drugs, looks like it has the potential to continue its recent
breakout out of a Trend Pivot Pullback.