Split Market
Not much changed since last week’s report. The Nasdaq, loaded with
TECH, TELCO,
SEMIS, BIOTECH
and WIRELESS continues to lead. In fact, the
Nasdaq broke above August’s highs at 1425…and on very heavy volume.
But…on the other end of the spectrum, there remains a long list of stocks and
sectors that remain stuck in poor technical shape. Those sectors are
BANKS, BEVERAGES
– (ALCOHOLIC and
SODAS), BUILDING PRODUCTS,
DRUG WHOLESALERS, HMOs,
HOSPITALS,
HOUSEHOLD PRODUCTS, RAILROADS,
REITs, RETAIL
– (DRUGSTORES, HOME
IMPROVEMENT, TOBACCO ,TRUCKERS).
Thus…it remains a very split market. The Dow and the S&P 500 are lagging for
the simple reason that they contain some of these lagging groups.
Short-term remains tough. While the major indices continue to act fine, more
worry signs are creeping in. Very simply, many of my sentiment indicators
continue to flash bright red.
- The VIX and VXN
have dropped to their lowest levels since June and April respectively.
Put/call figures
remain complacent.
Bullish advisors
remain at the high 50% level, while bears have now dropped to just under
24%…a very low reading.- Barron’s had a
front cover bullish article on CISCO SYSTEMS.
A few too many
trend-following strategists are NOW climbing aboard the
TECH train.
And of course, my CNBC
“SQUAWK BOX” meter is now off the page as every guest brought on says the
bottom is in. Do they ever have a bear on that show?
While the market
continues to repair itself, some more names are moving out. The more names that
show up, the more emboldened we get.
GILD tries breaking out of along base.
So does UOPX.
THO also breaks out
strongly. Careful with this one. Could be a late stage breakout.
