Market Notes and *Blue Plate Specials* 10/20 Portfolio Closeout

Market Notes
The best chicken soup for the investment soul is for the major averages to hit a new yearly high on a solid advance. Today’s move left nary a sector behind. The financials, represented by the XLF, finally broke $15 strong resistance. The last 45 minutes of the trading session it powered ahead leaving former market leader, the XLK (tech ETF), eating its dust.

Joining the joyride was the XLF’s brethren: the banks (KBE, KRE) and the homebuilders (XHB, ITB). Now that these crucial components have swung over to the bull;s camp, we can get on with this rally. Full steam ahead!

And looking ahead, I’m estimating the next resistance levels to be the following: SPX 1235, DTX 500, DJIA 11575, and Nasdaq 2600. Only the OEX needs to clear its 554 high set last April before entering new territory unseen for the┬ápast couple of years. We’ll see if tomorrow’s jobs number can throw a wrench into the gears of this steamrolling machine, but I doubt it.

Today’s portfolio close-out
The 10/20 portfolio was closed out another great gain thanks mostly to our two Argentinian banking stocks Grupo Financiero (GGAL) and BBVA Banco Frances (BFR). The banks in that country certainly have caught on fire!

The 10/21 portfolio will be exited tomorrow.


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

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