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The Morning Cup of Jo

By

Whattcha want from me Tickles, I've been doin' the best I can!!!

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Yesterday, with the afternoon lift, tossed a little more excitement into the market; or did it? 1.2B shares on the NYSE and 1.5B on the Nasdaq. Not much to write home about, especially since all the majors are still trading below the ST downtrends I pointed out in Tuesday's 'Jo.' If the markets break north bound of those lines with this type of volume I, as a net long investor, would be very concerned with the convictions behind the move. (Just read today's quote.)

Today I'll keep it short, but informative. Over the last couple of months and more so over the last few weeks, you've listened to all the professors, principally Toddo, talk about the major sectors and what role they play in the overall market's health.

Therefore let's take a look at the major secondary index for the SPX - the Phlx Bank Index (BKX) - and one for the NDX - the Phlx Semiconductor Index (SOX).

The BKX

On Tuesday Professor Reamer posted an Intraday Flash about Citigroup (C:NYSE) and its importance to the overall market (a must read). Hence, I'd like to show a more macro view of the sector. Here you can see the similarities to the explanation of Citigroup Scott gave on Tuesday. If this sector cannot get through the 98 level (on any kind of increased volume - approximately 15 - 20% above average) I believe 91.5 is the next stopping point and possibly 85.5 with an additional break.



The SOX

As for the tech laden Nasdaq, we turn to the SOX. Here you can see yesterday the index pushed up against triple converging resistance (ST downtrend, 200-DMA and IT Floors & Ceilings - at 490) and lost. As Toddo would say, "The easy trade." Now, I believe, it's gonna have to contend with its 50-DMA and last low of 440.



Many people, including my clients, have told me over the last month that since the beginning of the year I've been acting too much like Boo and I need to start pickin' up some of Hoof's "Mo-Jo." Well, my answer is this, in apprehension of sounding simplistic... "I'm gonna 'Read the Lines' and let the market tell me (technically) when it's time to change sides. As for now, patience is truly a virtue.

On a side note...

I'd like to make apologies to all the faithful readers of the 'Jo' and 'Hoofy & Boo's Biggest Movers' about the scattered postings over the last few weeks. There has been quite an increase in my daily schedule that should only last until the July 4th weekend. After that, I anticipate I'll be back writing on a more consistent basis. I trust you understand and will do my best to keep you informed about major technical changes within the markets. Thank you for your patience.

I hope this helped.

Until next time...

The KAT

No positions in stocks mentioned.

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