Sector Action

I’m short-term bull in the Oil & Gas Refining group right now. I still would like to see a little upward acceleration in the group. However it is trying to recover off the lows.

Energy does have some R to work through and I thus far like the fact it has worked itself past the inflection point. I would also like to see some acceleration to the upside here.

Oil & Gas did offer short term gains on the long side. I did like the nice retest of the trend line. It currently is near Resistance and I do not recommend long positions here.

Metals and Mining:
I’m longer term Bear in this sector on a macro basis as per monthly chart. I’m bull here on a micro level and think short-term profits might be made here.

The steel group did offer some short term gains. I'm still bull here but I'm noticing some signs of caution in the group. I don't recommend opening new long positions in this group until it takes out old highs and pulls back. Short Positions may present an opportunity but currently I see no set ups.

Electronics bottomed in 2002 and since has climbed 113%. First chart is a monthly and shows a retest of the lower channel line. I would like to see this sector break above upper channel. I would become very bullish on the bust out over upper channel. Monthly or longer term would plant me in wait and see mode.



Weekly chart does raise some caution on the long side or entry. I don’t like how it stalled and could not push on higher. It has however been consolidating or going sideways for about 9 weeks.



Here is the daily. I left the overlay on from the weekly. Notice the sideways action in the sector. This just does not have enough momentum for me at this time. I do how ever like the fact it is still above the 89ema.

[peanuts]

Electronics sector

Runner,

Hey bud, what do you think of the Electronics sector? I've been looking at WEX and BHE for next week. I'm wondering if you see strength in the sector? Thanks a millioin (I hope )

RS does look pretty good. Here are a few leaders from this group

CENX ACH AL NX TG

NB I think AA might be trying to turn and we shall see.

[peanuts]

The Aluminum group is currently in a nice trend accelerated mode. We will watch for longs during next pull back. The trend meets my criteria on cleanness and bull power.

RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS

Did I get my point across???

[New-born baby]

Housing

Thanks for the posts on housing and aluminum. Aluminum I find to be very interesting. AA is not moving anywhere. Of course, in my opinion, I think it is a crummy company. But what company is the top aluminum producer in the eyes of that Eagle, Runner?

Many group charts look like my high speed drawing. This could cause one to get suspicious on the long side. Or wait for the group to break out to the upside. I'm always cautious of groups pausing or stalling near old highs.

The Aluminum group is currently in a nice trend accelerated mode. We will watch for longs during next pull back. The trend meets my criteria on cleanness and bull power.

The Residential Construction group is currently in a first thrust down. This group may offer some shorting after next pullback. Notice the break of the wedge..

[billyjoe]

Home builders today warned that the housing slowdown shows no sign of stopping. Stocks of major builders had little reaction a sign that weakness is already priced into the stocks.

----------billyjoe

Here is the RSI scan from the Majors:

Well the last few days I’ve been trying to get my new DLS service working with my router and about got the thing worked out. I only need to configure my new bellsouth e-mail. Man I had no clue how intense setting up a router could be.

Here is current RSI standing on percent bases for the groups (look back 2 weeks).

Top:
Broadcasting-Radio
Marketing Services
Nonmetallic Mineral Mining
Telecom Services Foreign
PERSONAL Service
Semi-Specialized
Cement
Semi-integrated Cir

Bottom:
Surety & Title Insurance
Reit-Residential
Discount Variety Stores
Reit Office
Retail
Grocery Stores
Reit Retail

[IIC]

the gold industry has BEEN breaking out.

THoughts on REITs?

Depends on your goals...as a fairly conservative long term strategy REIT's are a good bet for maybe a 12% annualized gain.

But if you are looking at 1-3 years I would suggest that you investigate different REIT sectors. Just off the top of my head I think those that invest in Apartment Buildings should do well the next couple of years as housing affordability, even w/ prices dropping, will keep apartment vacancy rates low...Not to mention all the people that get foreclosed...They'll have to move somewhere and unless a bunch of apt. renters snap up foreclosures I think apartments will do well.

Speaking of apartments, I live in West LA...A new complex opened up on a major street (Venice Blvd) not all that far from me. I would not call it a "Prime" area like Wilshire Blvd. or Century City...It is probably 5 or 6 miles from the beach...The 3 bedrooms are going for $2,895mo...It seems to be filling up pretty fast too....Doug(IIC)

[dmk112]

The OILS bounced really nicely on Friday (without me ) although I do still have some calls in the XLE so it's not too bad.