If you read our weekend blog update, you would not have been surprised by the fizzled rally today. We said then that there was probably more consolidation to take place due to the high reading of our fast momentum indicator. Today we got that consolidation and our fast momentum indicator took a dip down on its way to reloading.
The good thing is that while the session did wipe out a 100 point Dow gain, it was a fairly tame session and ended basically flat for the day. Our slow and moderate term momentum indicators just kept on trucking. We are solidly in positive TradeWinds territory across nearly all sectors.
We are now entering into earnings season when some very volatile moves can take place particularly in individual stocks. Our TradeWinds momentum indicators tell us that we are in good shape going into the reporting period. The surging prices tells me that the money that moves the market is not afraid of the earnings that are about to be reported. Because of the increased volatility of the reporting period, this should be a great time to be buying the dips.
Today we say the energy sector (XLE) and consumer discretionary (XLY) enter into the positive TradeWinds zone. Right now we have only five sector in the negative column - SLV, PPH, GDX, GLD and XLV. Those sectors were up over 1 percent on average today - so once again this is a broad based move by the markets.
Check out our TradeWinds Top 25 lists and Black Box results here.
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