These 3 Charts Look Terrific
More of the same.
Every time a few sectors get in trouble, other sectors come to the fore to
take over leadership. Very simply, the buzzwords remain…ROTATIONAL and
CONTROLLED. I have used those words several times in the past…and see no
reason to change. All corrections have been mild and short-lived. Until that
changes, the market gets the benefit of the doubt.
Short-term, there are a few things you should
know.
First off, GOLD is still acting horribly and
should be avoided. I bring that up because I am still being asked about it.
Most GOLD stocks are tracing out reverse cup and handle patterns.
Secondly, the SEMIS may be getting in trouble
again. Take a look at the charts of LRCX, AMAT, and NVLS…not a very exciting
picture. I would avoid most SEMIS for new buying right here as they look to be
in corrective mode.
^next^
Continue to overweight OIL SERVICES. I have
mentioned this before. The charts just continue to get better and better. Not
only has the OIH broke out but individual names like PDE, SII, and SLB look
terrific.
Lastly and most importantly, breakouts continue to
work…and work…and work. I have told you many times that the most important
indicator of the market is whether stocks are successfully breaking out of
trading ranges. I hate to say this but it has been basically shooting fish in
a barrel right now as my successes are outdoing the failures by a wide
margin. I will know the market is getting in trouble by just seeing breakouts
fail and breakouts not show up. So far, there is not a day that goes by
that I don’t find at least a few set-ups. Enjoy this ride as it will
eventually end.
I will be holding an all-day workshop in Tampa,
Florida on March 27th. For more info…call 888 422 5559.