Certain Indices

I've highlighted certain indices and one sector here to show the discrepancy of the markets over the past month or so.  In this case you'll notice the S&P 500 is basically flat, emerging markets have finally caught a bid and the technology laden Nasdaq has just traded like dreck.  To illustrate this better I've also put the First Trust DJ Internet index in here as well.  It's down over 10%.  Our money flow indicators are showing that some of these sectors are oversold enough where probability is suggestive of a potential move higher.  Disclosure: some of the indices pictured above we've nibbled just a tiny bit for new money and more aggressive strategies over the past week or so.  We may also continue to buy going forward depending on how these areas trade {Disclosure I've also nibbled a bit in personal accounts in some of these areas as well, although positions can change at any time.}  

I'm thinking that one of two things has to happen either the bearish trading in some of the market's high flyer's is overdone or some of the more staid sectors and asset classes need to play catch up to the downside.   Obviously in the short term we think there is the potential for a move higher.  Wouldn't be surprised though if this is more of a short term phenomena and I think we may be re-evaluating these sectors in a shorter period of time than we normally use in accounts.

*Long all of the indices or indices related to these sectors mentioned above in client and personal accounts.  Positions can change at any time and we are under no obligation, nor will we necessarily attempt to disclose when these changes occur.

Posting Schedule:  Markets are closed tomorrow for Good Friday.  We have family in town for Easter so the next post here will be Tuesday.