The trend continues

• We continue to be in a down move and there have been days without counter trend bounce. The oversold market is so weak that it can not put together a tradable rally. The selling is slow and not panicky. Last week  for a day it looked like some panic is setting in but the reversal on Friday in final hours ensured that there will be not much panic.
• The Market Monitor primary indicator (25% plus in a quarter) is currently at 540. For it to reach 200 it might take more than next week. So going long is a risky proposition as of now.
• The sectors currently holding up well are:
  • MG113,Agricultural Chemicals
    MG132,Copper
    MG352,Tobacco Products - Other
    MG732,Discount - Variety Stores
    MG738,Auto Parts Stores
    MG741,Sporting Goods Stores
    MG745,Auto Dealerships
    MG826,Healthcare Information Service
    MG834,Semiconductor-Integrated Cir
    MG850,-Internet-
    MG852,Internet Information Providers
     
• Sectors currently in downtrend are:
  • MG328,Office Supplies
  • MG417,Regional-Pacific Banks
  • MG425,Credit Services
  • MG431,Life Insurance
  • MG444,Reit-Hotel/Motel
  • MG447,Reit-Retail
  • MG523,Health Care Plans
  • MG629,Textile Manufacturing
  • MG633,Lumber / Wood Production
  • MG712,Resorts & Casinos
  • MG771,Major Airlines