One last sector needs to flush/shake out
I finally had the chance to put together a decent chart review last night. One thing that really stuck out to me (aside from the $VIX being far from elevated as everyone has mentioned), is the relative strength of the energy sector.
IMO, we're going to need a flush out of the weak holders in the XLE / energy sector related stocks in order to setup any type of real tradeable move higher.
Until then any bounce will be nothing more than a kick back rally.
Of course it'd also be nice if the $VIX and put/call ratio surged higher as well.
On an unrelated note: Thank God. I finally have a legitimate internet connection up and running. That took way too long.
Interesting perspective. I believe all the leading sectors need to get washed out before we reverse the downtrend. -WillyT
Anonymous said... July 3, 2008 at 3:40 AM
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