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The Slow Grind Up Continues June 28, 2015

Posted by Tom in Thoughts.
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The markets are grinding up when you look at the longer term trend, but the volatility remains.  I still think the under pinnings are fragile and the market is venerable to just about anything negative.  Just about everyone is looking for a correction and it sure feels like there are a lot of folks “dancing near the doors” right now.

NASDAQ

We swung up to a new high, but then pulled back.  It’s the story of two steps forward and one back.  I’m leaving the UTAD label where it was and have drawn in short term reverse trend lines on the chart above.  The big jump in volume Friday is a surprise.  I’m wondering if an index rebalanced to cause this (?).  Most unusual and something to keep an eye on (possible SOW, sign of weakness?)

The 5020 area remains an important support level for me.  Sentiment remains neutral and the number of “good stock” candidates on my radar is shrinking daily.  Summer is the slow season for the stock market and with the vacation month of July around the corner things may get rather lethargic.

Sectors

The industry sectors of stock candidates that I’m watching are shown above.  The size of the pie slice indicates the number of candidates in each sector.  No major changes or surprises here.  Healthcare, Biotech and Software lead the pack.  Precious Metals and Oil are on the opposite / weak side.

Greece has decided to put the austerity demands (from the EU borrowers) up for a general vote.  I believe the date late this week / early next.  The outcome could send a shock wave through all market, but it should be short lived since this has been a long time coming and not exactly a surprise.  I am lighten up as holdings become stagnate or drift lower.  No sense in holding stocks in an environment like this.  Keep your powder dry as they say.

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

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