StockOperator,
>>>> So I am looking for the markets to attempt to break out of this trading range. What happens while this market attempts this breakout is what I will be keenly watching.
My call here is to be cautious that's all. <<<<<
I TOTALLY AGREE, and I and a few others have been saying that since around APRIL 13. Since then the market has been flat with the DOW up,
the SPX flat, and the NAZ down. If one was good enough or lucky enough to get into the cyclicals, they did well. But I think its fair
to say that there are more, probably many more who suffered in the HiTECHs compared to those who benefited from the cyclicals/basic materials.
We also need to keep in mind that the 15 smallest of the DOW 30 are the bulk of the cyclicals/basic materials, and only trade less than
2 million shares in a day. Dell alone, on a good day, could have as much volume as all of the basic materials(smallest 15 of the DOW).
UNION CARBIDE(UK) only has a market cap of 7 billion. And the average
market cap of the average DOW BASIC MATERIAL stock(15 smallest) is only around 31 billion.
So I am concluding that there are more who suffered since April 13, than those who benefited.
Hey, the market can zoom up alot more, but some of us have been calling for caution for over 3 weeks already and that call has been correct in general terms. Some benefited, but more suffered overall(average investor), since April 13.
Again, I think you are correct that if the NAZ was to zoom up, that would boost the market, but until that happens and rates remain high
we should be cautious.
seeya
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