Sector Spotlight: Landmine Market Edition

• Posted by DynamicHedge
• on May 21st, 2011

It was another go nowhere week where it paid to do nothing.  This is a market filled with landmines including the earnings fumble of $HPQ, Liberty Media’s $1 billion buyout offer for $BKS, and all the huffing and puffing over $LNKD.  If you managed to avoid problems this week you’re way ahead of the curve.

Winners: $COF, $AXP, $PM, $HNZ, $TWX, $MCD, $COP, $HAL

Losers: $HPQ, $GS, $BAC, $DOW, $HON, $MMM, $BA

Like last week we’re seeing continued weakness in financials and it looks like industrial stocks are weakening as well.  Strength is coming from defensive consumer names and some energy stocks.  Nothing has changed including the price of the broad indexes — which is very good news for the bulls.  This market has to go somewhere and if it can’t go down it will very likely go up.  Although I would like nothing more than a very HOT summer filled with volatility, it’s hard to be too bearish when you have a look at the Transportation Index ($TRAN).

I think the great healthcare rally is likely done or losing steam and energy stocks should see a bid.

Watch $TRAN, $FCX and $BIDU.  They’ll lead the way (listed slowest to fastest)

Winners:

Losers:

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