Matt,
Just got CLASS 1 SELL signal on the NAZ and NDX, and weak CLASS 1 SELL signals on the DOW and SPX. So the BUY-IN window is from now until MONDAY's HIGHs. As for the weak CLASS 1 SELL signals, that could mean 1 more day of upside with the BUY-IN window until TUEs highs.
Concerning SECTOR ROTATION, the OSX(OIL DRILLERS) could be a sector that may be the next to benefit to the upside. So far it looks good since it just set a higher high.
Im starting to see the DRUGs slow down slightly, so the verdict is still unclear as to whether it will still benefit from sector rotation. Also the DOT seems to be slightly slowing down, as it is approaching its recent peak. Maybe a double-top there.
Talking about SECTOR ROTATION in general, Im starting to notice that such is starting to ease a little. Im not seeing the massive explosions in specific sectors as in the past. Its still here in selective stocks, but just doesnt appear to be that strong with the sectors as it was in the past. If SECTOR ROTATION is easing, it could mean 2 things. One being that the anomoly of SECTOR ROTATION is being corrected and that the market now is basing and preparing for the next bull run, or that the short-term positive effects of SECTOR ROTATION is weakening and that selling may intensify.
For me, Im just going to continue making my short-term plays(1-5 days) based on my signals in both directions, awaiting more evidence.
Today is Friday, so I would not be surprised if we continue higher and close near the highs.
Its still early in the day, but so far the NEW HIGHs/LOWs have improve. Need to watch that closely.
seeya |
