This Sector Looks Toppy

 

First…a little bit of housekeeping.

 

Happy Birthday to my fabulous wonderful wife SuzAnne. She turns 28 today.
Just earned some points for that.

 

FOX NEWS CHANNEL’s BUSINESS BLOCK will air Sunday from 10 am – Noon. It will not
air Saturday due to Prince Charles’ wedding. That’s Sunday from 10 am-noon.

If you missed my show from Washington DC yesterday, you can listen at
https://www.businesstalkradio.net.
Interviewed on the show was Treasury Secretary John Snow, Labor Secretary Elaine
Chao, Counselor to the President Dan Bartlett and Deputy Chief of
Staff…otherwise known as head honcho, top dog, big cheese Karl Rove. It was an
honor and a pleasure to interview these movers and shakers of our government.

I urge everyone of you to educate yourself on Social Security. This issue is
potentially one of the most important in a very long time. Whether you agree or
disagree with the administration, educate yourself.

 

Seeing slight improvements in the market but stay on your toes…there is some
good and some bad to talk about:

 

I like the fact that I am seeing a few breakouts stick. That’s a start. One of
my important measurements is how many stocks are breaking out of bases and
whether they are holding the breakouts. Keep in mind, the number is few and far
between…but it’s a start.

 

I like the fact that my sentiment numbers are turning bearish…which is
bullish. BUT, once again, sentiment plays much differently in bear markets than
in bull markets.

 

On the not so thrilling front:

One has to take pause that this bounce continues on anemic volume. No rally can
be sustained without the institutional crowd showing conviction. So far, no one
is answering the door.

 

I am starting to see some subtle negative action in the RETAILERS…and I am not
talking about the RTH which is dominated by WMT, BBY and a couple of others. I
am seeing toppy action in many names that have been leading recently.

As I have been saying all year, this game is going to get tougher and tougher as
the bull move starting a couple of years back ages. This is no time to jump in
neck deep. If we start to see some high volume up days or a strong
follow-through day, we can become more emboldended. Until that occurs, defense
couldn’t hurt.