Thank you Amy for the stuff from Ken Shreve the list of stocks you noted
contains old leaders for sure. Leadership is my major concern right now.
I have been monitoring the market using the leading index, Dow
Transportation. Actually it is the second leading index under Gold. IBD
ranks the indices on the markets page in the B section.
Essentially the 200-day or 40-week has been acting a ceiling for a long
time. It broke through four days ago. I suspect if it can't find support
right here that we will head down. Notice that it made the recent high on
lower volume.
In February I timed short market entries to coincide with the times the
Transportation index hit the 200-day and then started to roll over. This
technique worked for me. I am watching this like a hawk right now.
Mike Scott
Tarzana, CA
Ken Shreve from IBD said on Steve Crawley's show at 6AM this morning that a
lack of new leaders is a major problem for the rally at the moment.
However, he mentioned some stocks that are either in bases or looking
healthy. RIG, HK, SWN, RRC. Note that they are all energy stocks. Ken also
noted the possible weakness for the fertilizers CF and POT.
