Long and Strong

As of last Thursday, I’ve been long equities and cash. I’m out of my inverse ETFs and not hedging.

Last Thursdays readings showed that stocks are now performing stronger than cash or bonds on a relative strength basis. Also, the NYSE Bullish Percent rose to over 32% on Friday, which is an indicator that stocks are poised to establish a sustained rally. This is a lower risk entry point here, as the market has come off a bottom and has now seen a major shift in sentiment back over the bullish 30% line.

I don’t know how long this rally will last, but I do want in on it. Therefore, I’m pushing more chips back on the table and upping the ante.

One quick and easy way for the lazy is to immediately put on in a position in the double long ETFs.

Sectors:  Just about anything should work here, as I anticipate a broad-based rally. So many sectors have been beaten up and are due for at least a little bit of a recovery. 

Buy signals on [[ICF]] ,$51.61; [[XLY]] , $22.98; [[XLE]] , $51.25; and [[XLF]] , $15.53.   

Looking at individual stocks, the aerospace/defense group looks interesting with The Boeing Company [[BA]] $52.42 , BE Aerospace, Inc. [[BEAV]] 12.87 , FedEx Corporation [[FDX]] , HEICO Corporation [[HEI]] , Lockheed Martin Corporation [[LMT]] , Teledyne Technologies Incorporated [[TDY]] , and United Technologies Corporation [[UTX]] . I don’t normally invest in airline stocks, but these can be traded: AirTran Holdings, Inc. [[AAI]] , Alaska Air Group, Inc. [[ALK]] , Continental Airlines, Inc. [[CAL]] , Delta Air Lines, Inc. [[DAL]] , US Airways Group, Inc. [[LCC]] $10.14.

Updates later in the day…..