Recap
The market has failed to show any weakness this last week. With the DJIA getting near it all time high it just plowed through it without any hesitation and had some good volume behind it. Looking at the weekly charts you can see the run. The big thing that jumps out at me is how long it has been since the markets have taken a break out the weekly chart – 8 higher highs in a row now.
For 10-9-06
This Monday is Columbus Day and some of the markets are closed or will be closing at noon, just keep this in mind. The employment numbers came in to strong for the market and we had our fist break since the DJIA hit it all time high. I’m starting to feel we need to take a rest here sometime soon, but I hate to try and call a top. The bigger questions is when we do end up taking a rest how will it happen. The ideal situation would be to have it chop around sideways above the last swing high on all the weekly charts. The best play is to wait and see. Gold came back above the 575 mark fast on this last bounce. Oil had very similar action at the 60 point. The dollar is in a situation that we have very low volatility on both the weekly and daily charts. The big move up on Friday seems to have chosen its direction out of this. We’ll be watching to see if it can hold here. The bonds played hard off its inability to make a new swing high on the last move and took a hit.
Strong Areas – Last Month:
Restaurants, Electronic Stores, Specialty Eateries, Catalog & Mail Order, Home Furnishing Stores, Auto Parts Stores, Major Airlines, Networking & Comm, Apparel Stores, Printed Circuit Boards, Leisure
PFCB, CCL, FLEX, GCO, TWB, NWY, CBK, PLCE, CMRG, CHIC, BBBY
Nice Looking Tau Long Stocks:
IEDU, BWNG, CMRG, CMCSA
Weak Areas – Last Month:
Copper, Silver, Gold, Drug Stores, Oil & Gas Drilling, Medical Practitioners, Oil & Gas Equipment, Independent Oil & Gas, Medical Labs, Shipping
GG, BOOM, BVN, PPDI, OCR
Nice Looking Tau Short Stocks:
ACI, EXP, USPI, THE, RATE, ANDE, AVID, PTEN, WLT, YHOO, BBG, PNR, NX, CBR, HAL,
Interesting Tight:
UIC, NEU, CHRW, NC, GIL, FS, EQIX, OSG, RTI, IVGN, RMD, DVA, KLAC, RYL, VMI, LSTR, EME
Hunting R 