The market has a way of pulling off surprises and a surprise is exactly what we got last week as inflation came in much cooler than expected which contributed to 5 straight days of market gains. Taking a look back, two big themes come to mind. First and foremost has been the lack of buy volume during the 2 days of big rallies.. it’s something I mentioned on a few occassions in the MidDay Market Updates last week. It looks like institutions are being very cautious here and rightly so. One good economic number doesn’t make a trend and by jumping in prematurely can be a recipe for disaster (remember, institutions can’t unload positions quickly like the small investor). The second big theme of the week was the shift of money from commodities to tech. Many tech companies began to emerge from the dead last week and may prove to be the backbone of any new rally. Pay close attention to technology shares in the coming weeks. It’s still too early to start seeing a barrage of high quality tech breakouts, but in a few weeks this may be where the big money is made. As far as economic numbers go, it’s going to be a light week but Iran’s formal response to the nuclear incentives package may be a market mover on Tuesday. I’d expect to see the market digest recent gains and possibly retrace the entire move. Look for decreasing selling volume on down days as a sign that the market continues to get more bullish.<\/p>\n
** Model Portfolio Update **<\/p>\n
With an inflation data induced rally last week, I quickly shifted from a short dominated portfolio to a long dominated portfolio within a couple days. Despite leaning the wrong way, it was once again a profitable week for the Model Portfolio with a gain of .8%, bringing the year to date performance to 15.3%. Five short positions were covered that collectively provided a small gain for the portfolio – UARM (+6%), PETS (+2%), BTU (+1%), SEE (-1%) and PENN (-2%). Two long positions that were initiated during the week were immediately closed. One in SHOO, due to a sharp reversal for 1% gain, the other in KDN due to a lack of buy volume for a 2% gain. Four additional long positions were initated during the week which I continue to hold. One new short position was added as well. All new positions are currently profitable. Currently, the portfolio allocation is roughly 15% short, 40% long and 45% cash.
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Try it out for yourself for 30 days! Sign in to your account here: http:\/\/www.selfinvestors.com\/amember\/member.php<\/a> and take advantage of the no risk trial.<\/p>\n ______________________<\/p>\n ** Best\/Worst Performers **<\/p>\n – Top 10 Performing Industries For the Week –<\/p>\n 1. Internet Service Providers 10.00% – Top 10 Worst Performing Industries For the Week –<\/p>\n 1. Personal Products -.90% – Top 5 Best Performing ETFs For the Week – – Worst 5 Performing ETF’s –<\/p>\n 1.streetTracks Gold (GLD) -1.95% ** There are no IPO’s worth watching for the coming week **<\/p>\n ** Upcoming Economic Reports (8\/14\/06- 8\/18\/06) **<\/p>\n Monday: No Events ** Latest Blog Entries – In Case You Missed Them!**<\/p>\n – SelfInvestors Blog –<\/p>\n 1. Breakout Stock Highlights (BITS, DRIV, NITE, ORCL) (Aug 18) 2. S&P Joins Nasdaq With Breakout (Aug 17) 3. Nasdaq Clears Key Resistance, Volume a Bit Tepid (Aug 16) 4. MarketSnapshot & MidDay Updates (Today the Rally is Muted) (Aug 15) The market has a way of pulling off surprises and a surprise is exactly what we got last week as inflation came in much cooler than expected which contributed to 5 straight days of market gains. Taking a look back, two big themes come to mind. First and foremost has been the lack of buy … Continue reading Weekly Market Review – Out of Commodities & Into Tech<\/span>
\n2. Internet Software & Services 9.25%
\n3. Processing Systems & Products 9.20%
\n4. Comuter Based Systems 8.50%
\n5. Semiconductor – Integrated Circuit 8.20%
\n6. Semiconductor – Specialized 8.20%
\n7. Communication Equipment 8.00%
\n8. Residential Construction 8.00%
\n9. Semiconductor – Memory Chips 7.80%
\n10. Publishing – Periodicals 7.80%<\/p>\n
\n2. Hospitals -.75%
\n3. Drug Stores -.05%
\n4. Food – Major Diversified -.05%
\n5. Independent Oil & Gas .00%
\n6. Processed & Packaged Good .05%
\n7. REIT – Office .10%
\n8. Publishing – Books .10%
\n9. Oil & Gas Pipelines .20%
\n10. Gas Utilities .30%<\/p>\n
\n
\n1. HLDRS Internet Infracture (IIH) 9.50%
\n2. Ishares Networking (IGN) 9.15%
\n3. HLDRS Internet (HHH) 8.75%
\n4. HLDRS Broadband (BDH) 8.75%
\n5. India Fund (IFN) 7.60%<\/p>\n
\n2. DB Commodity Index (DBC) -1.95%
\n3. Ishares Gold (IAU) -1.90%
\n4. Central Fund of Canada (CEF) -.70%
\n5. Central Europe & Russia Fund (CEE) -.15%<\/p>\n
\nTuesday: Retail Chain Store Sales, Retail Sales Index
\nWednesday: Existing Home Sales, Petroleum Status
\n Mortgage Applications
\nThursday: Money Supply, New Housing Sales, Durable Goods Orders, Jobless Claims
\nFriday: No Events<\/p>\n
\nhttp:\/\/investing.typepad.com\/tradingstocks\/2006\/08\/breakout_highli_1.html<\/p>\n
\nhttp:\/\/investing.typepad.com\/tradingstocks\/2006\/08\/sp_joins_nasdaq.html<\/p>\n
\nhttp:\/\/investing.typepad.com\/tradingstocks\/2006\/08\/nasdaq_clears_k.html<\/p>\n
\nhttp:\/\/investing.typepad.com\/tradingstocks\/2006\/08\/marketsnapshot_.html<\/p>\n","protected":false},"excerpt":{"rendered":"