Sector Investing

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I'm not so sure that the semiconductors can break the downtrend just yet. The NASDAQ market has slipped into overbought territory. The VXN is at all time lows.

http://www.investorshub.com/boards/read_msg.asp?message_id=3273087

Sentiment is simply too bullish.

http://www.schaeffersresearch.com/streetools/market_tools/inv_intel.aspx?click=jumpto

Les Horowitz has the trend score at 99 and it can't get any stronger than 100.

http://www.siliconinvestor.com/stocktalk/msgs.gsp?msgid=20257983

In other words even if the semiconductors do make an apparent breakout which, I still consider unlikely, I would wait for a pullback before entering into long positions.

Finally as nice as it is to see the Dow Transports running higher if the volatility indices do break higher this week, as it is looking like they will do, the whole market will likely be dragged down.

JMHO, RtS