Market Notes
I’m doing my weekend chart surfing and noting that several market-leading indicators (TQQQ, SQQQ, DTX) stalled on Friday. This could indicate one of two things: the market is taking a catnap before advancing, or it’s ready to take dive. Let’s hope it’s the former and not the latter but we won’t know for sure until the market opens tomorrow.
I’m tending to think that the market could be in for a breather as there’s really no significant market-moving news on the horizon. Sure, the Michigan Consumer Sentiment number may have some effect but that won’t be until Friday. Of minor importance will be the earnings reports of agribully Monsanto (MON) due out Monday, wireless provider Sprint (S) and casino game-maker Int’l Game Tech (IGT) on Tuesday, retailer Macy’s (M) and apparel maker Ralph Lauren (RL) on Wednesday, and big pharma Merck (MRK), entertainment conglomerate Disney (DIS), and major health-insurer Aetna (AET) on Thursday. In light of these considerations, bulls might want to add a little protection to their portfolios.
Friday’s portfolio close-out
The 10/21 portfolio was closed out on Friday. An excellent 8.8% gain was achieved by a very industrial-heavy portfolio led by the auto parts makers and the aero & defense suppliers. And it sure didn’t hurt that there weren’t any offsetting losses, either!
The 10/22 portfolio will be exited Monday. Only six portfolios remain.
[See 4/21/10 blog for further details on how these portfolios were constructed.]