Key Sector Improvement

Editor's Note:

At the risk of repeating myself I am encouraged by strength in the small cap stocks, the transportation index, and the semiconductors. These are all key sectors of the market that need to participate if any rally is going to have legs. Now if we can just get the financials to breakout from their consolidation we should be in business.

I still hesitate to add new positions with the S&P 500 stuck under resistance near 1,110. However, in the updates section I mentioned that BAC might become a new bullish candidate if the bounce continues. ESV, a watch list candidate, graduated to the play list a couple of days ago. Plus, we're adding HON and ORCL to the watch list.