*Blue Plate Specials* Portfolio – 9/20/10

Market Notes
The market blasted through major technical support—all except the Dow Transports (DTX), generally considered a market leader, and the the volatility index (VIX). This gives good ‘ol Dr. Kris a cause for concern because whenever the S&P 500 (SPX) has risen above 1130, the VIX has correspondingly dipped under 20.

Not so, now. What does this mean? Maybe something, maybe nothing. On the one hand, higher volatility means that if the volatility drops, prices will rise higher; on the other hand, it could be that investors are wary about the future state of the economy and don’t want to risk full positions.

Your guess as to which (or neither) is right is probably better than mine.

Other bullish indications are the following:

1. The tech sector (XLF) broke out today. The bank indexes did okay, too.
2. The ultra short Q’s (SQQQ) hit a new low while it’s long counterpart, the TQQQ broke out. (Note that both of these tracking stocks have only been in existence since this February.)

I do think we’re leaning towards the upside and if you’re a bear, I’d definitely cover my shorts if the DTX breaks 452 resistance.

New Long Portfolio
Choices, choices, choices–so many lovely ones today! I don’t think one could go wrong with most of them. Here’s what I selected from today’s *Blue Plate Specials* lists: Breaking out to new highs (4), Breaking out to new highs on lower volume (1), Low-priced Leaders (3), and Darlings of the Day (2).


[See 4/21/10 blog for further details on how these portfolios are constructed.]

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