June 23, 2011

Short-term: 2 green, 1 yellow, 1 red
Intermediate-term: 1 yellow, 3 red
Composite: Neutral but deteriorating

Another day where the bounce is met with selling. Strike two. The positive divergence was large cap tech. Ideas I like are — AAPL (Apple) and CHL (China Mobile) which had news today that could carry both (CHL will carry iPhone starting in a few months); STE (Steris) – medical sterilization equipment is not affected by general economy; and JEC (Jacobs Engineering) – an infrastructure play for the next round of fiscal stimulus. All have value, upside that can outperform a trading bounce, some resistance to a further decline in the general market, and for the smaller companies stable/good institutional shareholders.

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