Securities Research Services

Tuesday, October 16, 2007

Trend Watch In Effect

The market is in a very tough spot here. The S&P broke out, but volume was not intense. Yesterday the S&P looked like a breakout failure intraday, but by the close it was able to move back up and close at new support.

It's tempting to join the other pundits and repeat the worn out idea "market participants are not willing to make any bets in front of the slew of earnings," but that may in fact be what we are faced with here.

As a result, no one can really know what to expect next. The uptrend is still in tact. Commodities continue to behave well. The future probably depends on projections that come with all the conference calls in the next few weeks.

As we noted yesterday, avoid everything but Energy, Metals, Asia, and Shipping.

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