Current rally – “dead cat bounce” or still alive?
Many market observers have been quick to sell into the current rally off of the 5/24 lows. They cite – among other things – poor market breadth and volume, and weakness in semiconductors and foreign markets, as reasons to be bearish.
Certainly the weekly trend analysis continues to reflect a negative or neutral intermediate-term trend picture. But the overall view has improved somewhat since last week, and I wonder if there might not still be some better selling opportunities in the next week or two.
Meanwhile, I’ve added several additional ETFs to the main trend analysis page: iShares MSCI Emerging Markets Index (EEM), iShares MSCI EAFE Index (EFA), and Oil Services HLDRs (OIH).
New positions
No new positions this week, despite some attempts to sell some selected puts and covered calls. Nothing went down far enough or up high enough to trigger any of my limit orders.
Watchlist
Stocks of interest on this week’s “upside strength” scans include Eastman Chemical (EMN), General Mills (GIS), Pepsico (PEP), and J.M. Smucker (SJM).
Currently “oversold” and/or “beaten down” stocks of interest include Brunswick Corp. (BC), Home Depot (HD), KB Home (KBH), Microsoft (MSFT), Telefonos De Mexico (TMX), and Sonic Automotive (SAH).
