Mkt Thoughts:
I continue to favour commodity related stocks as gold remains an attractive bet at current levels. Many Technology names are worth a look especially in dissecting the better relative values in the market place.
Despite, extended charts of broad indices, the general market does not fully describe the emerging themes across various sectors.
Looking to make bets in ADM and PEIX – as a neglected corn themes. A macro structure in place but recently neglected value following May’s decline.
Concerned about market compliancy at these levels given the positive and uniform upside moves in most areas in the marketplace. OSX watched closely here as commodity related names take a pause.
Financials: Banks have retraced from overbought levels and would trim on shorts with a wait- and –see approach. Brokers continue to work and suggest an early short but a tough lesson learned before and a great rule not to call tops in the marketplace.
Consumer: Stock-specific for the most part….weakness in homebuilders remains a concern but not a fresh ideas and Media is a group of high interest.
Healthcare: Pharmacuticals responding to post-election speculation but a downside move can offer for early recovery and watching for overreaction of sellers.
Finally, looking for semi’s to recover here and lead a charge in technology. Despite bearish street sentiment risk/reward remains positive.
