WEEKEND REPORT

If you owned MEDIA, DRUG STORES, BIG TELCOM, LOTS OF RETAIL, AUTO PARTS RETAIL,MANAGED CARE, BEVERAGES, FOOD, HEALTHCARE DISTRIBUTORS,SUPERMARKETS,TOBACCO, DEPT STORES, ADVERTISING, LOTS OF ENERGY and a few big names like the GE, IBM, DIS and a bunch others…you are not a happy camper. We bring this up first while the market is strong because it is imperative you know there is still plenty not working. This is why we always emphasizes sectors because very often, bull and bear sit side by side.

THAT SAID…the market remains strong, not only here but worldwide…which is usually the best type of markets.

So on the other end:

AEROSPACE/DEFENSE, AIR FREIGHT, BIOTECH, CHEMICALS, CONSTRUCTION and CONSTRUCTION MACHINERY, ELECTRONICS,HOUSING, INDUSTRIALS, INSURANCE BROKERS, INSURANCE, INTERNET, INVESTMENT BANKING, OIL REFINERS, PAPER, PHARMA, SEMICONDUCTORS and now lets add a few things that may be coming on:

REITS…as we are seeing the worst of bottom and the best of breaking out, STEEL as a few names move out of range, AGRICULTURE and other COMMODITIES.

Areas that have been working that may be losing some steam are: RAILS, some of the BIOTECH, TRUCKERS and UTILITIES.

There is little reason to mention major indices as the rotations are more important. We continue to be amazed what easy money has done to the market as a 3% correction has been out of the question. Keep in mind, this has caused massive complacency, bullish sentiment that is off the charts and articles calling for outlandish moves going forward with some calling for melt-ups. You mean the past 8 years wasn’t a melt up?

Just recognize it is out of this complacency that (when markets decide to correct) leads to corrections of magnitude that are uglier than normal but with trillions still being printed, rates still negative, rates near zero and our fedheads keeping rates down, maybe we won’t ever have another bear market. (Bazinga!) Some people are actually saying that.

A ton of earnings this week…and next.