Hi hmatar,

That is a good question. My main intention in collecting these observations is to really look at what the market is doing right now. The reason for an increased focus on the materials/energy sector was simply due to some interesting activity witnessed these past weeks after a period of underperformance earlier in the year. For example, when a stock like FCX all of a sudden jumps through two major moving averages with noteworthy volume - what might be going on? Is this strength an indication of not only a possible bottom, but perhaps leadership? FCX is a very large company with a big float, so it takes real buying power to move such a stock up with vigor.

Today the futures are pointing down. So we will see if these stocks hold their recent strength and attract money, even if the market sells off. Regarding the dollar, your guess is as good as mine. I've learned there are many assumptions and aphorisms built into the direction of the dollar and the subsequent impact on stocks. I prefer to just look at the market on a daily basis and through numerous timeframes.

Also, just to clarify, the securities highlighted are not implicit buys. While some might show legitimate buy signals depending upon one's criteria, others are merely highlighted because their action "says something" about the market as a whole.

Best
Eric