SectorVue by David Schultz for June 30th , 2008

Aces back to back

The Dow Jones fell off another 496 points while the NDX 72 points. Commodities lead the 
broad market index list with Volatility VIX increasing and long term interest rates TYX 
decreasing. This market is very oversold and stuck in a trading range with the price of oil 
in the headlines and Banks bringing up the rear.

Sector Action for the week was only minus 189. 7 Sectors were up while 24 were down. 
Our Market Barometer fell to the March lows. We still show the January lows as THE 
LOW. Monday is the last day of the month and the midpoint for the year. Mutual Funds 
must own Oil Patch stocks and would rather not have any Banks in their portfolios. This 
sets up an obvious trade going into July of selling Oil Patch stocks and buying Banks.

Rydex Alerts- Back and forth continues. This should make for a great summer. As of Friday 
we are fully invested in double bullish RUT and NDX.

Short term Trading indicator- Oversold with Market breadth indicators extremely oversold.

INTERMEDIATE TERM TRENDS-   Bearish

INTERMEDIATE  OSCILLATOR - Very oversold looking for a very good bounce in July.

Gold XAU- Number one in overall rank amidst dollar and inflation concerns. A lot of US 
dollar holders like to convert some of that paper into gold. I would say gold is a buy on 
dips.

Oil Patch OSX XNG XOI- Number 2,3 and 4 in  Sector rank propped up by end of quarter 
window dressing. Our numbers show these sectors are waning in strength and are ripe for 
profit taking and a dynamic sell off.

Banks BKX- The other side of the oil coin. Banks have rallied in relative rank from deeply 
oversold readings and are ripe for a rally when the quarter ends and July begins.

Ultra ETF’s-  This market is perfect for trading these leveraged etfs and they are prudent 
for investors to hedge the bumps and bruises. Holding Bullish NDX QLD. Purchased 
Bullish Tech ROM Friday. Buying bullish Financial UYG and bearish Oil Service DUG.

Tech sectors TXX and SOX- In the top ranks and should be the leaders when this storm 
passes over. Microsoft MSFT is perhaps the most undervalued stock in the market. 
Google GOOG is the bellwether testing the 525 April price gap Friday.

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This report is for educational purposes only and does not constitute "investment advice".