After a darn good move, this 60-40 market is now feeling a little tired. A 60-40 market simply means about 6 out of 10 stocks remain in shape while 4 out of 10 just ain’t happening. Looking farther out, these numbers do not thrill but as long as the major indices stay above their respective 50 day average and as long as the 60% keeps working, no sweat.
So to be repetitive, we remain bearish on a long list of areas…some we have been bearish for quite a long time:
ENERGY/OIL & GAS…except for REFINERS.
STEEL, COPPER, ALUMINUM, COAL and all that stuff.
UTILITIES, REITS as BONDS have topped. Near term , bonds may have put in a low.
We are also starting to see tops in AIRLINES which with the RAILS have held back the TRANSPORTS recently.
Remains a long list of MEDICAL,MEDICAL PRODUCTS, BIOTECH, MANAGED CARE and GENERICS.
RETAIL-(DISCOUNT,HOME IMPROVEMENT, DEPARTMENT STORES, DRUG STORES, SUPERMARKETS , APPAREL)
A few other notes:
FINANCIALS are mostly mixed. Not much there.
GOLD had been emerging but is now still in pullback mode.
HOUSING is the latest group that has emerged on the upside. This group had been dormant for a while.