Sunday, November 25, 2007

Inspirations for the New Week

* Large Cap Strength - Here is a daily advance-decline line of the 40 stocks in my basket. As mentioned in my recent post, these are the most highly weighted five stocks within eight S&P 500 sectors: materials, industrials, consumer discretionary, consumer staples, energy, health care, financials, and technology. The advance-decline line for these uber-caps remains bullish, while the advance-decline lines specific to the S&P 600 small caps and the S&P 400 midcaps are in clear downtrends. It's a bit reminiscent of 2000-2001, when a bear market started in NASDAQ and tech stocks, but Dow issues held their own. It seems to be financials and homebuilders playing the role of tech stocks in that drama, however.

* Reading to Start the New Week - Trader Mike updates his links, including a frightening look at bank write-offs and a Dow testing support. More excellent links from The Kirk Report, including a look at meltdown in the economy and a case for buying value funds when they're down. Abnormal Returns returns with more fine links, including a look at oil denominated in various currencies. Barry Ritholtz wraps up the week with a look at what was strong and weak, as well as prospects for the dollar and inflation.

* Ideas for the New Week - Adam takes a look at cyclical volatility. A Dash of Insight provides a look at their trades and at what's strong and weak among ETFs. Bespoke offers a sector snapshot and finds mixed performance. Ray Barros examines the anatomy of a bubble. StockPickr assembles a portfolio of short-squeeze candidates. Seeking Alpha examines ways of investing in water themes.