Sector Investing

[Don Wennerstrom]

RtS, Thanks for all the charts and explanations, but if I can try to summarize at this point.

First of all, as usual I believe, the indicators do not all "line up" to give us an unambigious buy or sell signal at the same time. We seem to have that situation now if I understand the charts correctly.

The VIX seems to be a very positive signal now to go "long". TRIN seems to be just the opposite.

<<Readings of the 5 and 10 day simple moving averages over 1.5 are bullish while readings below 0.85 are bearish. This is where we are on the 5 day sma's now.>>

Just by "looking" at the NASDAQ chart action of the last days - I like it! So I think I will side with the VIX for the moment and look for a "rising" market this coming week.;)

The semi-equips had a very bad week last week as reported on SI. The interpretation of KLAC's earnings report after the market close on Wednesday by the "market" was a "killer", particulary for the large semi-equip names, on Thursday. While the NASDAQ had a good up day, AMAT, NVLS and many other semi-equips had a "very big" down day. The semi-equips still haven't fully recovered from this action, although Friday was a recovery day of sorts.

Where do we go from here? - I vote to go with VIX.;)

Don