On June 13, 2016 I wrote a piece on the Rallysaurus. The main point, “The Rallysaurus slowed down markedly at the beginning of 2016. Nevertheless, with many but certainly not all continuing to enjoy top of the food chain status, the Rallysaurus still lives.â€
Here we are 5 weeks later. Flash Gordon has entered the scene. For those too young to know, Flash is regarded as a significant influence of early Superhero comics characters. Created in 1934, Flash is a Yale University graduate who becomes an astronaut that travels to different planets.
In the photo above, Flash Gordon is “marooned on a monster-infested planet torn by war.†Sound eerily familiar?
Here on planet Earth, the Rallysauraus, whom many believe worthy of its own comic strip, continues to roam freely. Thwarting ray gun attacks fired from Brexit, terrorism and home-grown political hoopla, nothing seems to stop it.
This past week, the Dow made history. Closing higher 4 weeks in a row and ending the week with yet another new all-time high, this Rallysaurus has the strength of Tsak, the two-headed green monster.
If one of Tsak’s head resembles the Dow, the other wears Semiconductors’ face. On a tear, SMH not only had a breakaway gap on the daily chart, but on the weekly one too. A rare sight indeed.
Meanwhile, we continue to witness a divided Modern Family made up of Semiconductors, yes. But also Russell 2000, Retail, Regional Banks, Transportation and Biotechnology.
Have those sectors ignited enough? What more must they do?
Examining the Family by phases, Biotechnology even with its new found antlers, lags behind. Technically, it seems to be forming a solid base that breaks out over the 200 DMA. That would take it from Recovery into an Accumulation phase.
As the word suggests, we will look for an “accumulation†of cash or “smart money†to begin to buy for a longer term position.
