In a return to the trading action we’ve seen over the past few months, it seemed the market was going to find some kind of excuse to push higher. The Nasdaq led the way and busted out of a trading range to a new multi year high. The S&P reclaimed support of its 50 day moving. This alone is very bullish action, but as I’ve been mentioning we can’t place too much importance on it due to the light holiday trading volume.
At this point, until the bears can strike with significant technical damage, the bulls still have the upper hand. As normal trading volume levels return next week, keep an eye on the 50 day moving averages of the indices. It’s an area that is shaping up as a key short term support level, particularly for the Dow and Nasdaq.
::: Model Portfolio Update :::
It was another week of relative inaction on my part, choosing to sit largely on the sidelines until holiday traders come back and we get some meaningful volume. It was a good week for the market and even better for the SelfInvestors Model Portfolio which jumped 2.2%. My strategy at this point is to remain leaning to the bullish side but initiating smaller postions and locking in profits quicker than I ordinarily would. A good example of this was the sell of GMCR Friday morning. The stock is still showing very bullish action and no signs of slowing down but considering I had a 30% gain in just a month I had no problems locking in the gain. It had just come too far too fast in a market that is on a bit of shaky ground. As it turns out the stock closed considerably higher by the end of the day but I don’t have an regrets. The only other transactions that were made during the week were 2 small Quick Strike Profit long entries. The current allocation of the portfolio is 55% long, 20% short and 25% cash.
::: Best/Worst Performers :::
– Top 10 Performing Industries For the Week –
1. Lodging: 10.35%
2. Diversified Electronics: 8.60%
3. Silver: 8.50%
4. REIT – Hotel/Motel: 8.00%
5. Heavy Construction: 7.85%
6. Copper: 7.60%
7. Gold: 7.55%
8. Aluminum: 7.35%
9. Shipping: 7.15%
10. Industrial Metals & Minerals: 6.90%
– Top 10 Worst Performing Industries For the Week –
1. Music & Video Stores: -2.95%
2. Sporting Goods: -1.60%
3. Investment Brokerage: -1.20%
4. Personal Service: -1.10%
5. Manufactured Housing: -1.00%
6. Movie Production – Theatres: -.90%
7. Long Term Care Facilities: -.90%
8. General Entertainment: -.90%
9. Printed Circuit Boards: -.90%
10. Air Delivery & Freight Service: -.80%
– Top 5 Best Performing ETFs For the Week –
1. Turkish Investment Fund (TKF) 8.25%
2. Ishares South Korea (EWY) 7.85%
3. Korea Fund (KF) 7.80%
4. Market Vectors Gold (GDX) 7.70%
5. Japan Small Cap (JOF) 7.20%
– Worst 5 Performing ETF’s –
1. Herzfeld Caribbean Basin (CUBA) -4.20%
2. HLDRS Biotech (BBH) -.80%
3. HLDRS Internet Infrastructure (IIH) -.20%
4. Ishares Home Construction (ITB) -.05%
5. Powershares Dynamic Biotech (PBE) -.05
::: IPO’s Worth Watching for This Week :::
No IPO’s worth watching again this week- the summer slowdown is upon us.
::: Upcoming Economic Reports (7/9/07 – 7/13/07) :::
Monday: Consumer Credit
Tuesday: Wholesale Inventories
Wednesday: Crude Inventories
Thursday: Initial Claims, Trade Balance, Treasury Budget
Friday: Export/Import Prices, Retail Sales, Business Inventories, Mich. Sentiment (prelim)
::: Notable Upcoming Earnings Reports I’ll Be Watching This Week :::
Tuesday: HDFC Bank (HDB)
Wednesday: Genentech (DNA), Acergy (ACGY)
Thursday: Fastenal (FAST)
Hang on to your hats.. earnings season begins to ramp up next week!
::: In Case You Missed It – SelfInvestors Blog Entries of the Past Week :::
1. Stocks Rocket, But With Little Sizzle; Stock of Day NVE Corp (NVEC)
https://selfinvestors.com/tradingstocks/weeklyafter-stock-market-review-archives/stocks-rocket-with-little-sizzle-stock-of-day-nve-corp-nvec/
2. Blackstone (BX) Buying the World, Adds Hilton (HLT)
https://selfinvestors.com/tradingstocks/news/blackstone-bx-buying-the-world-adds-hilton-hlt/
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