Office is closed for holiday during the week.

Office is closed for holiday during the week.

Office is closed for holiday during the week.

Office is closed for holiday during the week.

The market started the new week on a positive note. However, given that the week is not only holiday-shortened but also around quarter-end window, not much should be read from this week's action. News flow is very slow in today's trading but will see a pickup from tomorrow.

For the week ending on June 26th, most major indexes continued their previous week's pattern, that is, they were above their 50-day moving averages but their 200-day moving averages were sloping down. Based on the current trend, the Nasdaq will become the first major index that will see its 200-day moving averages turn up. Within the Nasdaq composite, the Internet and the Semiconductor subindexes will have their 200-day moving averages turn positive sloped late this week or early next week.

Sectorwise, China related stocks, especially internet media companies, were among the best performers out of 50 sub-groups we are tracking for the week ending on June 26th. Specialized financial firms, such as hedge funds, were among the worst performers. Natural gas producers and oil service companies were also coming from the weak side. We continued to avoid commodity-related companies due to poor fundamental condition worldwide. By sticking to only fundamentals, we may miss some opportunites for quick profits but we will also avoid the devastating experience some had in late 2008.

Most major sectors finished the session higher led by industrial and energy. The CRB commodity index climbed 1.2%. The US dollar was mixed against most major currencies. Treasuries rose with the yield curve flattened. The three-month US LIBOR was unchanged. The VIX index dropped less than 1 point. The market breath was positive on both NYSE and Nasdaq. The volume was lighter compared to the previous session.