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In Like a Lion, Out Like a Lamb March 29, 2013

Posted by Tom in Thoughts.
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The old saying that “March comes in like a Lion and out like a Lamb or in like a Lamb and out like a Lion” pretty much held true for the U.S. markets this March.  But before I go into detail, I’d like to draw your attention to my monthly Newsletter just posted (click on the Newsletter tab above to view).  In that newsletter I take a broader look at the past month and have some supporting graphs; I won’t repeat them here, but you may find them of interest.

NASDAQ Composite

I’ve cleaned up the chart of the NASDAQ Composite Index (above) to reflect the gap up breakout in early March (the “hot knife thru butter”) and updated some labels.  Of note is the steady progress within the price channel(s) and the “stair-step” method of this market rushing up, then pausing before another push upwards.  The pauses have been minor and brief and have been driven by news items.  This indicates traders are nervous about the future and don’t want to be left “holding the bag”, but every dip is finding support and buying. 

So we go with the trend, which continues to be up.  I’ll pay attention to the (blue) price channels and the (purple) price support levels for clues of problems ahead.  There are plenty of potential problems.  Europe and its Banking crisis and the up coming earnings reports in the U.S.  Japan continues it’s climb upward but China and most developing countries are not doing nearly as well.

My main sector focus is on Japan, Biotech, Consumers Goods and HealthCare.  The table below shows the top & bottom sectors ranked by recent strength.  By “recent strength” I mean price movement and relative strength to the S&P 500 Index.  It also takes into consideration money flowing into and out of these sectors. 

Top 10 Sectors:Top 10 Sectors

Bottom 10 Sectors:Bottom 10 Sectors

Let’s continue the quest by being invested, but also watchful of more than an occasional pause or break.  Stocks are relatively “fairly” valued, bargains are getting harder to find and the weak season (the Summer) is nearly upon us.

I should note that the next 2 weeks of posts may be rather brief, as I have a major assignment to work on, but if things change in an alarming way I will certainly note that herein.  Always watchful and diligent !   🙂

Have a good week.        ………..  Tom  …………

chart courtesy of MetaStock; tables by www.HighGrowthInvestor.com; used with permission.

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