WEEKEND NOTES

BIOTECHS blasted out of the big base set-up we told you was occurring. It is now very extended but thinking this is for real. Pullbacks should be looked at.

REGIONAL BANKS look the opposite as many are rolling over. Watch the KRE. A break below $51 would be a big negative.

The SEMIS still holding as they dropped down to support and have held so far. This is very important as they are a market leader, both up and down.

Leading growth big tech/internet and all that stuff has held the 50 day/10 week moving average. A few amazingly look poised for new highs. Again, something to watch very closely.

We are now watching SOLAR stocks. Yes…dead and buried names coming back to life off of long bases…some off the lows.

We are still counting about 40% of stocks in poor shape. This is amazing considering most major indices are near highs. It just tells you how split the tape is and is something to pay a lot of attention to.

With major indices at new highs, we would continue to avoid a big list of sectors including energy/oil & gas, big retail, drug stores, supermarkets, discount retail, auto parts retail, autos, most commodity areas including steel, gold, silver and other stuff, big telecom, russia, brazil and now seeing some trouble in home improvement retail , machinery and chemicals.

Areas that remain in fine shape are hotels, cruise lines, insurance, tobacco, gaming, managed care, biotech, medical products, healthcare anything and housing.