Ton Of Work Remains

Only a couple of changes from last week to talk about. First, what hasn't changed is the good tone in the market off of the July 24 lows. Quietly, the market is doing a good job of repairing all the horrid damage that had been done over the previous months. I still believe this rally is of no more than intermediate consequence...but as usual, I will let the market be the guide.

Longer term, there remains a ton of work to do. What has changed is that I now believe the Nasdaq...particularly TECH...has now started its own short to intermediate-term rally. It had to start somewhere. After an 80% drop in the Nasdaq 100, now is good as time as any. As usual, I don't know how long it lasts and how far it goes, I just believe the direction has changed near-term. There is not much to buy there because you are buying off of the ugliest of charts. This call is to tell you not to be short TECH for this second.

Just continue to play it close to the vest. Breakouts are occurring and for a big change...are now working. The problem is that there aren't many and quality is fleeting. My other thought has to do with that we are already 1200 points from the lows and September is lurking around the corner. I am not a big believer in seasonal strength or weakness but it is something I do not ignore.

Most sectors are still climbing out of their steep dives and have more repairing to do. Sectors with stocks setting up or breaking out are GAMING, SMALLER BANKS and SCHOOLS.