A Lot of Sectors Are Still In Trouble

Greetings from Maui...unfortunately, coming back to the real world on Saturday. Had a blast but needed to let you know a few things about travel.

Delta Airlines...is a horror show.. Not only was our connecting flight to Honolulu missed because of a mechanical problem , on our next flight, they lost our luggage. We ended up staying in L.A. overnight. Delta refused to pay for the hotel in L.A. because I booked it on my own as no one told us we were entitled to a free room. But that's ok. They finally found the luggage. Not so fast! On the flight out of L.A., Delta again lost our luggage into Honolulu. After sitting on a line for 2 hours, we gave all our info...to no avail. We then called Delta and sat on hold for 45 minutes...before someone told us the bags will arrive the next morning. Well...finally got the bags on our third day...and now, we fly out on Delta coming home. I hope no one at Delta reads this....but then again, they should. I can't begin to tell you how big the line was for lost luggage.

If you are on the Big Island and have kids, go to the Hilton Waikoloa. It is a kid's paradise. If you are on Maui and have kids, go to the Grand Wailea Hotel. You can do no wrong at these places...but I must say the $15 burgers at the Grand Wailea were scrumptious.

If you go to Kauai, it is a must to take a helicopter around the island. You must also take a boat to the Na Pali coast. I recommend taking one from the North shore...a much better trip.

Other thoughts:

Hey John Edwards...you are right. There isn't any war on terror. Those wonderful doctors in England were not trying to kill and destroy the innocent. Just a figment of our imagination.

Speaking of the DEMS, I have given them every chance to do what the Republicans didn't do...and that is to govern. Nope...so far...they wanted the Fairness Doctrine restated which mandates speech...they have changed rules and procedures to raise your taxes more easily...they have done nothing about earmarks...they have gone the other way with ethics reform as we have found out people like Pelosi and Reid are up to their necks in questionable ethics...and they are into the daily investigation du jour on the Bush administration. In other words, everything they said they would do, they haven't...and everything they said they wouldn't do, they have.

Three weeks ago, you saw me on "Cavuto On Business" on the ever-popular Fox News Channel's Business Block. I predicted that John McCain would be the first major casualty of the presidential election. After firing 50 campaign staffers and showing very little cash, I now call it the chalk bet.

And just to be fair, what has the Republican party done lately? Oh yes...NOTHING!

Business time:

People are going to jail...or maybe not...why....because no one is watching. KOMAG was bought out. Did you see the 4 days leading up to the buyout? Massive buying on heavy volume...in a dead stock...but no one saying anything. Did you see the action on HILTON...the day before the buyout? Huge volume move on a pre-holiday trading day...but no one says anything.

Did you see the Bear Stearns bailout...by Bear Stearns? First off, where are the ratings services with all these bonds that are not priced? Oh yes...failing to do their job because if they lowered ratings, there would be a mini-meltdown or more. This is more laughable activity by the ones who should be protective? Where is the SEC? Where are the Feds? How can there be billions and billions of dollars of mortgage-type bonds literally unpriced? Why do the cops wait until a huge blow-up has already happened? I am afraid we have only seen the first of the blow-ups...and this occurred only on a blip to the upside in rates. What if rates really get out of hand?

We got the 4th of July ramp. What else is new? It started at 340 pm last Friday with the market sinking like a stone. The usual sprinkling of pixie dust followed. Today, I talk about what is and what is not working.

I am still bearish on anything INTEREST-RATE sensitive. Why? I am still bearish on BONDS. The chart of the BOND is plain gross. INTEREST-RATE SENSITIVE areas I am bearish on are HOUSING, UTILITIES, REITS, REGIONAL BANKS, S&LS most FINANCIALS, LENDERS and most BROKERS.

I am also in the bearish camp on INSURANCE stocks, GOLD/SILVER, COAL, DRUGS, BIOTECH, RESTAURANTS, misc. RETAIL and misc. TRANSPORTS.

I was bearish on the HOTELS...but the HILTON buyout took care of that as everything up in sympathy. Amazingly, I am no longer bearish on the AIRLINES...as many stocks are turning the corner. Lastly, I am more wary of the OILS here as a few too many names have broken the 50 day average...but overall...still in decent shape.

What I do love here is that major indices have held support...the NASDAQ and NDX are breaking out...and leading growth names are a popping...many of the names I have mentioned to you in the past...names like AAPL, BIDU, GOOG, FWLT, AMZN, RIMM, CROX, MA, FFIV and others. I have been trained to pay attention to these leading names...because of they continue to do well, markets usually hold up.

I love the set-ups in many of the SEMIS...though I question the fundamentals. But the set-ups are there. Even the mighty puke...INTEL...is moving out of a one year base.

I continue to get too many bearish emails every time the market has a down day. I call them the QIDers...because all they want to buy is the QID...which is the double inverse ETF of the NASDAQ 100. This should give comfort to those who own the other side.

One needs to just recognize here that there are still a lot of sectors in trouble. If you own them, in spite of the market, you are losing some bucks. It is "split-tape city out there right now...so dont think you can throw darts. I do believe and reiterate it may be NASDAQ-time here...even though the NASDAQ supposedly underperforms the summer months. I would be paying attention to those names mentioned as well as others that break out of bases and land on the new high list.