Sector Investing

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RtS Comments: The Dow Transports set a new recovery high today. This is extremely significant because it negates the previous sell signal in my humble opinion.

However this in no way is a market in which buyers should be chasing stocks especially in technology. This is of course also in my humble opinion.

The volatility indices are at or near all time lows. The Investors Intelligence Poll remains far too bullish. The implication here is that any disappointment will be sold despite the improvement in underlying technicals in the market. Buying the dips will more likely be well rewarded now than at any other time this year but wait for the dip.

If you have been following charts and the various indicators I have provided then you are armed with some powerful tools. Another tremendous source of useful market timing information can be found in the scans listed by Les Horowitz each night for various industries:

http://www.siliconinvestor.com/stocktalk/msg.gsp?msgid=20244489

Les's Trend Scores are among the most interesting data. Uptrends never get any stronger than 100 without reversing. Downtrends never get and worse than -100 without reversing. Either however can reverse at any point in between. If you are not watching that data on Les's thread I highly recommend that you start now.

RtS