The big test for the financials has arrived. I'm not buying a single stock in this group, but I am watching to see that it can hold near the $24 level and start to form an inverted head and shoulders. If it does hold, it bodes well for the entire market. If not, there is probably more pain ahead for all stocks.
I took an initial position in a leveraged health care fund last week. I'm not expecting great returns anytime soon, but this group looks way oversold and unloved... probably due to the upcoming election.
The NASDAQ relative performance has been surprisingly good since it bottomed late summer 2006. Tech is probably a good place to be looking for opportunities. I'm a buyer on pullbacks.
Look at this terrific strength for the smaller companies. This is a good sign for the broader market. The big companies and their strong balance sheets are getting their butts kicked by the small, agile companies.