7/22 - cautious bull (sell stop)

• this past week's earnings was tech and financials...no coincidence that even with some dissapointments, they were the leadership groups...think for this earnings seasons, whichever group reports will outperform because expectations are so low
• next week is energy reporting...think they are the best of the bunch to buy
• i am undecided...if a good bullish setup pops up, i will be tempted to buy but unless market breaks to new highs, it is very risky...
• also, if short setup pops up, risky to short as the overall feel of the market seems to want to go higher esp as QQQ already went to new highs and same with XLU...as well as dollar breaking down
• overall, i think its better to be bullish than bearish but also need to keep a tight "sell stop" on either position as headline risk and news is plentiful in these coming days
  

Bullish

- NDX broke prior high
- leaders of last week has been energy, financials, and then tech....these are the biggest and most important sectors so this is a good thing...
- despite bad CAT earnings which is usually a very important stock, market was unfazed except for the djia and tech just kept trotting higher
- much talk about debt ceiling being scary and the end of america...but investors shrugged that off too all day able to hold ground.
- any day now, a debt ceiling agreement should be met, and when that happens, it should give a good to investors

Bearish

- DIA fell big vs other indexes and still below its strong resistance (said because CAT earnings)

- utilities dropped

- RKH at prior resistance as well
- europe got its bailout for greece yet market will not rejoice like the rest of the world.