Sector Investing

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Leavitt Brothers Free Stuff:

updated Sunday, January 22, 2005



01/22: As we stated last week, longs were risky. The negative divergence we pointed out for our members played out perfectly. The uptrend is in question, and the best case scenario for the next few weeks is sideways action. But most likely we'll see some follow through on the downside first.
01/15: As of now, the upper Bollinger Band is serving as resistance, and if the band starts to flatten out, we're likely to see some consolidation before another rally attempt is made. The trend is up, but longs are risky here.
01/08: The Bollinger Bands narrowed, and after a false move down, the S&P busted out with force to the upside. This typically leads to a continuation of the rally (unless the index immediately turns around).



01/22: After the biggest one-day move down in a long time, the uptrend can now be questioned. We are not looking to buy dips right now but instead playing the momentum down and letting the market dictate what we do.
01/15: There is absolutely nothing wrong with this chart other than the possible need for a pause. The uptrend is solidly in place and volume (not shown) has support the move. Dips are buyable until proven unwise.
01/08: We got a clear breakout with separation for resistance and the top Bollinger Band. Short are getting killed. The trend up shall continue.
01/02: For now we'll call this a bull flag within a uptrend, but that doesn't mean we buy and hope support holds. All trades are short term and stops are very tight.
12/25: The Nas barely move last week, so last week's comments still apply. Volatility is certainly low, and this can't last too much longer.