SectorVue weekend comments for Monday August 9th , 2010

Gone Fishin’


The Dow Jones finished the week up 187 points and the Nasdaq 100 NDX up 38
points still coasting on positive momentum and finding buyers on any dips.

Sector Action for last week was minus 546 with   30 Sectors up and 5 down.
The wheels are slipping a bit.The Market Barometer is on the vierge of
giving a Sell signal from overbought territory which in a slow trading
vacuum could lead to some wind shear price action. (see graph on page 4)

Rydex Alerts- Holding Bearish Russell and Bearish NDX.

Short term Trading indicators-  overbought Sells

Market Breadth - Cumulative Market Breadthis still marching upward although
the broader based Russell index was down for the week. The base is showing
signs of erosion.

INTERMEDIATE TERM TRENDS-   positive

INTERMEDIATE  OSCILLATOR - on the verge of a confirmed Sell signal.

The bulls need to pull a rabbit out of a hat this week in order to avoid
the trick and get a treat. So far the buyers have come in to save the day
on opening gaps down however they are not able to skyrocket after positive
openings so we are looking at a drift to the upside with a chance to crater
on the downside. Agribusiness MOO- Number one in overall rank which is a
good sign the worldwide economy is picking up. Or at least China is buying
and Russia is tightening their belts after a severe drought.

Biotech BTK- Take over talk and drug approvals get this sector sizzling and
leading the rest of the Nasdaq growth techies up.

Pharmaceutical DRG- A sharp rally catching up to biotech and benefitting
from high dividends and value buyers.

Ultra ETF’s-  SSO and SDS are tradeable however many days the range is only
60 cents which means - go fish.

Banks BKX, Retail RTH and Housing HGX - all at the bottom of our Sector
rankings. The Consumer is on vacation or possibly looking for employment or
not. Something is amiss here and it is difficult to see the market test
this years highs with these sectors in the dumpster.

Gold XAU- found some buying or more likely short covering last week and
moved up in rank but still not out of the lower rankings which has been the
key to the last several spikes up in price. SectorVue and Rydex alerts are
for educational purposes only and do not constitute 'investment advice'. No
representation is made that strategies will produce a profit. There is risk
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