$SPY, $STUDY, Friday’s GDP number knocked the blue chips lower by
triple-digits and buyers were again reluctant to step in. Several of the major
averages ended the week flirting with their 50-day moving average and the DJIA
and Russell 2000 closed slightly below that support level. The Major Market Model remained in a Buy mode
as did the Asset Allocation recommendation at 50% Long and 50% Cash, which
again is confirmed by the 49.3% Long status of the weekly analysis which is run
on the six watch lists which are tracked here.
The short term Trades Model again reflects Buy recommendations on the
four members of this group but with a 50/50 spilt in the Opinion column.
Monday will see us trade Under Armour Inc
(UA) and most
likely replace this holding with an equally weighted position in Integrated Device Technology Inc (IDTI). But
I am still not feeling aggressively Bullish and will not increase the equity
weightings at this time.
Despite weakness in the broader market, pockets of strength remain
in technology and healthcare and the Philadelphia Semiconductor Index posted a
gain today. That could bring buyers back in next week. There are nine names on
the Watch list for those who feel braver than I to peruse over.
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