WEEKLY SECTOR WATCH

The NYSE Bullish Percentage is on offense at 68.34% and the OTC Bullish Percentage is on offense at 52.78%. (Last week: 67.64% & 52.94%)

The following sectors are on Point & Figure buy signals: Real Estate & Electric Utilities (very risky), Insurance, Aerospace & Metals, Banks, Savings, Gas Utilities, Food, Financials, Machinery, Steel, Leisure, Health, Housing, Business Products, Forest Products, Retail, Telephone, Restaurants, Gaming, Auto, Textiles, Electronics, Internet, Building, Transports, Medical, Computers, Software, Biomedical, Drugs, Precious Metals, Oil Services, Protection, Oil, Waste, Semiconductors (green = Favored)

Reversed up this week: none

Reversed Down this week: Wall St.

Leading Names in leading Sectors:

Metals: BVN, PD, EZM, PCU, MT, NSS, SYNL, NUE, CMC, AKS, RIO
Retail: GCO, CMRG, JWN, SSI, PLCE, BONT, SKS, KSS, AZO

note from me: A point and figure chart (explained) is a disciplined approach to selection and managing risks. It was created by Charles Dow and is based on supply and demand (economics). A reading of 30% is low and a reading of 80% is very high. The higher the percentage the greater the risk. This is important to watch while in the market and/or waiting to put new money to work. These Bullish Percentage indicators relate to risk levels and are not “buy” or “sell” indicators on the NYSE or the OTC. The bullish percentages should indicate to an investor when to be aggressive and when to be defensive. As the reading goes over 70%, sector selection becomes a more critical part of your strategy. These indicators can be found at www.dorseywright.com.

STOCKS BREAKING ABOVE AND BELOW THEIR 50 DAY & 200 DAY M.A.

Use this "tool" to avoid sectors going down and to remain in/buy sectors going up.

Indexes, Sectors "losing" momentum vs. Wilshire 5000:

• S&P 500 (large cap value)
• Mid-Cap 400 (value & growth)

Sectors: Financials, Banks, Health Care, Pharma, Semiconductors, Mobile Telecoms, Oil & Gas, Oil Services, Consumer goods, Gold & Silver

Indexes, Sectors "gaining" momentum vs. Wilshire 5000:

• Nasdaq 100
• Russell 2000 (Small Cap Value)

Sectors: Biotech, Technology, Internet, Telcoms, Basic Materials, Consumer Services, Real Estate

With the help of this ETF screen, you can gauge which sector the money is flowing to and which exchange traded fund is making cumulative new highs.

According to Benjamin F. King in his "The Latent Statistical Structure of Securities Price Changes," 50% of a stock's price movement can be attributed to the overall movement in the market, 30% to the movement in its sector and only 20% on its own. So, if you must pick individual stocks, use fundamental analysis for stock selection and technical analysis for the timing of purchasing or selling. Do not ignore market risk, however.

LET THE 200 DAY MOVING AVERAGES BE YOUR GUIDE TO BE IN OR OUT OF THE MARKET(S) -- Go to: Stock Charts.com for an update.

Gains & Losses by Sector/Industry plus: SECTOR ETFs Summaries

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