It looked for awhile on Friday that we would get the kind of day that would turn our momentum indicators in favor of the longs. In the end, we ended up with another mixed bag. Fast momentum ticked up but moderate momentum continued unabated on its downward trek. Our slow or long term momentum is still heading down but at a moderating pace. All of this means that the market has not decided as to which way it will head next. One convincing day either way will be decisive. So sit tight and don't make any big bets one way or the other.
We are seeing strength in the precious metals (GLD, SLV, SLW), oil and oil service (USO, OIH, HERO, BTE), agriculture related (MON, MOS, CF) and a smattering of tech (GLW, RIMM, IGN, QQQQ).
Interestingly, we are seeing a lot weakness in the defensive stocks that would normally be havens for the big, bad recession that is coming (PPH, KMB, XLV, XLU, XLP). We also seeing weakness in big cap areas (XLI, DIA, SPY, C).
Again, its a mixed bag. We still have strong winds in our face which are slowing diminishing, some areas showing improvement, but no big push going up or down. Lets see what the next week brings. In the meantime, Don't Ask Why, just follow the tradewinds.
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