money flows into the energy, technology, too consumer staples stocks also every bit the consumer discretionary too financial sectors. (The latter postal service includes a detailed explanation of the coin menstruum measure).
In this post, nosotros cause got a await at five-day coin flows plotted against the materials (XLB; tiptop chart), industrials (XLI; marrow chart), too wellness tending (XLV; bottom chart) ETFs, which rails the sector components of the S&P 500 large cap stock universe.
As amongst the before posts, I've taken the x stocks well-nigh highly weighted inside those ETFs to jurist sector coin flows. Those stocks are every bit follows:
Materials: MON, DD, FCX, DOW, AA, PX, APD, NEM, NUE, X
Industrials: GE, UPS, UTX, BA, MMM, CAT, HON, EMR, DE, GD
Health Care: JNJ, PFE, MRK, ABT, WYE, MDT, LLY, GILD, AMGN, UNH
We tin dismiss run across from the tiptop nautical chart that, dissimilar the other sectors, funds cause got been consistently flowing into the materials sector, every bit the five-day average has spent much of its fourth dimension higher upwards the zilch job separating inflows from outflows. Note, however, that the well-nigh recent readings cause got been rather tepid. When XLB hitting novel cost highs ii weeks ago, coin flows were lagging. When nosotros had selling inwards the commodities terminal week, flows turned negative. This appears to last operate of a shift out of the hot commodities stocks too into to a greater extent than beaten downwards areas, such every bit financials too consumer discretionaries.
Money flows for the industrials sector line a blueprint we've noted before: waning selling pressure level since the Jan highs too internet inflows since early on April. As XLI has tested recent cost highs this past times week, coin menstruum hitting novel highs before trailing off belatedly inwards the week. The blueprint of higher lows too higher highs inwards the five-day menstruum numbers suggests that investors cause got been putting coin to piece of work inwards this area.
Finally nosotros cause got the weakest of the sectors: wellness care. Observe that, every bit the wide marketplace position has rallied of late, XLV has barely participated. Money flows cause got been rather consistently negative every bit well. We saw about inflows early on this past times week, simply those cause got hardly been impressive. It is quite probable that investors, noting the wellness tending reform ideas advanced past times the Presidential candidates, are non aggressively dedicating upper-case alphabetic lineament to this sector.
Once 1 time to a greater extent than nosotros tin dismiss run across how the menstruum of funds inwards too out of sectors captures of import marketplace position themes. This is a promising mensurate of persuasion that I'll last roofing inwards greater special inwards the future.
.
Showing posts sorted by relevance for query money-flows-into-materials-industrials. Sort by date Show all posts
Showing posts sorted by relevance for query money-flows-into-materials-industrials. Sort by date Show all posts
Wednesday, August 16, 2006
Tuesday, August 15, 2006
Info!! Indicator Review For April 28Th
Last week's indicator review noted signs of marketplace strength, only too roughly concerns on the horizon with honor to coin flows into Dow stocks together with the cumulative NYSE TICK. This calendar week features much of the same, only with a few to a greater extent than cautionary notes regarding the cost strength.
The exceed nautical chart requires roughly explaining. I of late posted coin flows from the x nigh highly weighted stocks inside 8 S&P sectors: financial, consumer discretionary, energy, consumer staples, technology, materials, industrials, together with wellness care. I combined the coin flows from those lxxx stocks (the specific issues are identified inwards the sector posts) to locomote into at an approximate of coin flows into together with out of the S&P 500 Index.
If you lot review those sector posts, you lot tin shipping away come across that at that spot are broad variations of coin stream from sector to sector. That tells us that nosotros are non seeing coin beingness seat to operate inwards the marketplace inwards a broad-based fashion. Across the sectors, however, selling delineate per unit of measurement area (money outflow) has been waning, which you lot tin shipping away come across inwards the exceed nautical chart from the rising lows inwards the five-day stream figures. Moreover, since the outset of April, nosotros convey seen rather consistent flows into the S&P 500 stocks. To this point, flows are confirming the cost highs that we've been seeing, only at that spot are notable laggards alongside sectors--hardly a vigorous bull move.
This selective nature of the recent cost forcefulness tin shipping away live observed inwards the novel high/new depression information (middle chart). Note that, during the recent motility to cost highs inwards SPY, novel 20-day highs minus lows convey been lagging. Moreover, this non-confirmation continues to demo upwards inwards our cumulative NYSE TICK mensurate (bottom chart). Last week's indicator review highlighted the importance of the 1400 surface area every bit long-term resistance inwards the S&P 500 Index. If nosotros are to sustain a bring out inwards a higher house that level, nosotros demand to come across indications of expanding participation inwards the strength. While nosotros *are* seeing expanded coin flows across the sectors, the variability from sector to sector; the lagging number of stocks registering novel highs; together with the lagging cumulative TICK give this bull motility something of a yellowish caution light.
Here's a quick await at other indicators together with what nosotros mightiness glean from them:
* Treasury involvement rates convey risen sharply inwards the by week, peculiarly at the curt end. There is growing speculation that the Fed may bring out afterward 1 lastly involvement charge per unit of measurement cutting this week. This is dollar supportive, only it too suggests that marketplace participants are weighing the possibility that we're dealing with a normal recessionary economy, non a deflationary 1 requiring Japanese-style quantitative easing. It too indicates a much reduced demand for the flight-to-safety trade, which frees upper-case alphabetic quality for stocks.
* My Cumulative Demand/Supply measure, which has nicely tracked intermediate-term marketplace peaks together with valleys, is moderately overbought at a reading of +22. Readings of +30 together with inwards a higher house convey corresponded to 20-day periods of subnormal functioning inwards the S&P 500 Index. We hitting that +30 grade dorsum on Apr 18th. Interestingly, the recent cost highs inwards SPY convey occurred at lower levels inwards the Cumulative DSI, suggesting 1 time once again that fewer stocks convey been displaying rigid upside momentum every bit we've moved to the 1400 grade inwards the June ES contract.
* We're seeing a continued expansion of stocks trading inwards a higher house their 200-day moving average. Among the S&P 500 issues, 46% are instantly inwards a higher house their 200-day averages, the highest grade of 2008. That proportion is 39% for S&P 600 modest cap issues, which convey lagged a fleck recently.
* Fri saw 51 novel 52-week highs alongside NYSE mutual stocks together with 23 novel annual lows. That is significantly less than the over 100 novel 52-week highs registered the prior week. I'm watching this closely; nosotros demand to come across expanding novel highs if the bull motility is to live sustained.
* We maintain to come across technical forcefulness inside my handbasket of twoscore stocks, with 27 issues trading inwards uptrends, iv neutral, together with nine inwards downtrends. This is downwards from lastly week's peak, only soundless robust.
The bottom business is that nosotros *are* seeing reduced selling inwards stocks together with selective increased buying. How selective the buying remains--or how it tin shipping away broaden out from here--will nation the story of whether nosotros autumn dorsum into the multi-month trading hit or sustain an intermediate-term motility to novel highs.
.
The exceed nautical chart requires roughly explaining. I of late posted coin flows from the x nigh highly weighted stocks inside 8 S&P sectors: financial, consumer discretionary, energy, consumer staples, technology, materials, industrials, together with wellness care. I combined the coin flows from those lxxx stocks (the specific issues are identified inwards the sector posts) to locomote into at an approximate of coin flows into together with out of the S&P 500 Index.
If you lot review those sector posts, you lot tin shipping away come across that at that spot are broad variations of coin stream from sector to sector. That tells us that nosotros are non seeing coin beingness seat to operate inwards the marketplace inwards a broad-based fashion. Across the sectors, however, selling delineate per unit of measurement area (money outflow) has been waning, which you lot tin shipping away come across inwards the exceed nautical chart from the rising lows inwards the five-day stream figures. Moreover, since the outset of April, nosotros convey seen rather consistent flows into the S&P 500 stocks. To this point, flows are confirming the cost highs that we've been seeing, only at that spot are notable laggards alongside sectors--hardly a vigorous bull move.
This selective nature of the recent cost forcefulness tin shipping away live observed inwards the novel high/new depression information (middle chart). Note that, during the recent motility to cost highs inwards SPY, novel 20-day highs minus lows convey been lagging. Moreover, this non-confirmation continues to demo upwards inwards our cumulative NYSE TICK mensurate (bottom chart). Last week's indicator review highlighted the importance of the 1400 surface area every bit long-term resistance inwards the S&P 500 Index. If nosotros are to sustain a bring out inwards a higher house that level, nosotros demand to come across indications of expanding participation inwards the strength. While nosotros *are* seeing expanded coin flows across the sectors, the variability from sector to sector; the lagging number of stocks registering novel highs; together with the lagging cumulative TICK give this bull motility something of a yellowish caution light.
Here's a quick await at other indicators together with what nosotros mightiness glean from them:
* Treasury involvement rates convey risen sharply inwards the by week, peculiarly at the curt end. There is growing speculation that the Fed may bring out afterward 1 lastly involvement charge per unit of measurement cutting this week. This is dollar supportive, only it too suggests that marketplace participants are weighing the possibility that we're dealing with a normal recessionary economy, non a deflationary 1 requiring Japanese-style quantitative easing. It too indicates a much reduced demand for the flight-to-safety trade, which frees upper-case alphabetic quality for stocks.
* My Cumulative Demand/Supply measure, which has nicely tracked intermediate-term marketplace peaks together with valleys, is moderately overbought at a reading of +22. Readings of +30 together with inwards a higher house convey corresponded to 20-day periods of subnormal functioning inwards the S&P 500 Index. We hitting that +30 grade dorsum on Apr 18th. Interestingly, the recent cost highs inwards SPY convey occurred at lower levels inwards the Cumulative DSI, suggesting 1 time once again that fewer stocks convey been displaying rigid upside momentum every bit we've moved to the 1400 grade inwards the June ES contract.
* We're seeing a continued expansion of stocks trading inwards a higher house their 200-day moving average. Among the S&P 500 issues, 46% are instantly inwards a higher house their 200-day averages, the highest grade of 2008. That proportion is 39% for S&P 600 modest cap issues, which convey lagged a fleck recently.
* Fri saw 51 novel 52-week highs alongside NYSE mutual stocks together with 23 novel annual lows. That is significantly less than the over 100 novel 52-week highs registered the prior week. I'm watching this closely; nosotros demand to come across expanding novel highs if the bull motility is to live sustained.
* We maintain to come across technical forcefulness inside my handbasket of twoscore stocks, with 27 issues trading inwards uptrends, iv neutral, together with nine inwards downtrends. This is downwards from lastly week's peak, only soundless robust.
The bottom business is that nosotros *are* seeing reduced selling inwards stocks together with selective increased buying. How selective the buying remains--or how it tin shipping away broaden out from here--will nation the story of whether nosotros autumn dorsum into the multi-month trading hit or sustain an intermediate-term motility to novel highs.
.
Tuesday, January 12, 2021
Info!! Wtf With The Unloose Energy Stocks?
Materials, Industrials, Consumer Discretionary, as well as Consumer Staples sectors. Now it's the plough of the Energy stocks. Above nosotros run into the Cumulative as well as Five-Day Flows for v highly weighted stocks inside the sector, plotted against the Energy ETF, XLE. The v stocks included inward the analysis are XOM, CVX, COP, SLB, as well as OXY.
What nosotros run into off the bat is that Energy issues select been relatively stronger than other sectors, thank yous to commodity strength. Indeed, their nautical chart looks to a greater extent than similar the nautical chart for the Materials sector than virtually of the others for this reason. Note equally good that the recent marketplace weakness failed to select XLE below its Jan lows. This non-confirmation, which we've observed amid the other sectors equally well, has played an of import run inward the market's real recent bounce.
That having been said, nosotros did non run into a bounce inward XLE slow concluding week, owing to the commodity selloff. Moreover, Cumulative Money Flow for the Energy stocks has been inward a steady downtrend since August, 2007. Considering the historic forcefulness inward crude oil prices over this period, XLE functioning has been muted. Indeed, it appears that coin has been systematically coming out of this sector over time.
The five-day flows demonstrate that especially piffling upper-case missive of the alphabet flowed into the sector during the bounce from the Jan lows. That has fix the electrical current weakness. While the sector is make saltation as well as the non-confirmation of the Jan lows was encouraging, in that location is non nevertheless prove of pregnant funds flowing into liberate energy issues that would ability an upside breakout.
.
What nosotros run into off the bat is that Energy issues select been relatively stronger than other sectors, thank yous to commodity strength. Indeed, their nautical chart looks to a greater extent than similar the nautical chart for the Materials sector than virtually of the others for this reason. Note equally good that the recent marketplace weakness failed to select XLE below its Jan lows. This non-confirmation, which we've observed amid the other sectors equally well, has played an of import run inward the market's real recent bounce.
That having been said, nosotros did non run into a bounce inward XLE slow concluding week, owing to the commodity selloff. Moreover, Cumulative Money Flow for the Energy stocks has been inward a steady downtrend since August, 2007. Considering the historic forcefulness inward crude oil prices over this period, XLE functioning has been muted. Indeed, it appears that coin has been systematically coming out of this sector over time.
The five-day flows demonstrate that especially piffling upper-case missive of the alphabet flowed into the sector during the bounce from the Jan lows. That has fix the electrical current weakness. While the sector is make saltation as well as the non-confirmation of the Jan lows was encouraging, in that location is non nevertheless prove of pregnant funds flowing into liberate energy issues that would ability an upside breakout.
.
Monday, January 11, 2021
Info!! Wtf Alongside The Healthcare Stocks?
Materials, Industrials, Consumer Discretionary, Consumer Staples, too Energy sectors. Here we're examining v highly weighted stocks from the healthcare sector, amongst Cumulative Money Flow (top chart) too Five-Day Flows (bottom chart) plotted against the Healthcare ETF, XLV. The stocks included inward the analysis are PFE, JNJ, MRK, LLY, too AMGN.
Note that, dissimilar many of the other sectors, Healthcare shares convey been quite weak during the recent marketplace position decline, dropping to novel behavior marketplace position lows. This weakness was preceded past times steady dollar outflows from the sector: banker's complaint the steady downtrend inward Cumulative Money Flow. Not solely is the sector weak; at that topographic point are no signs at acquaint of a sustained stream of funds into these shares.
Five-day flows convey bounced a bit, exactly stay negative. Note how positive periods of five-day stream convey non been sustained, oft leading to subsequent toll weakness. Of the sectors, this is i that is relatively weak, both inward toll surgical operation too coin flows.
.
Note that, dissimilar many of the other sectors, Healthcare shares convey been quite weak during the recent marketplace position decline, dropping to novel behavior marketplace position lows. This weakness was preceded past times steady dollar outflows from the sector: banker's complaint the steady downtrend inward Cumulative Money Flow. Not solely is the sector weak; at that topographic point are no signs at acquaint of a sustained stream of funds into these shares.
Five-day flows convey bounced a bit, exactly stay negative. Note how positive periods of five-day stream convey non been sustained, oft leading to subsequent toll weakness. Of the sectors, this is i that is relatively weak, both inward toll surgical operation too coin flows.
.
Sunday, January 10, 2021
Info!! Wtf Alongside The Applied Scientific Discipline Stocks?
Materials, Industrials, Consumer Discretionary, Consumer Staples, Energy, Healthcare, too Financial stocks. Here we're examining v highly weighted Technology issues, amongst Cumulative Money Flow (top chart) too Five-Day Average Flows (bottom chart) plotted against the XLK (Technology) ETF. The v stocks included inwards the calculations are MSFT, INTC, IBM, CSCO, too VZ.
We tin meet that the Technology sector, similar Financials too Healthcare, has shown recent relative weakness, breaking below its Jan cost lows. Nevertheless, nosotros haven't seen novel lows inwards Cumulative Money Flow, suggesting to a greater extent than or less drying upwards of selling during the recent decline.
The lessened selling, however, has non translated into aggressive buying. We are exclusively modestly off the recent cost lows, too five-day coin flows convey remained negative. As amongst too then many of the other sectors, we've yet to meet sustained buying involvement that would Pb us to hold off a major modify of trend.
.
We tin meet that the Technology sector, similar Financials too Healthcare, has shown recent relative weakness, breaking below its Jan cost lows. Nevertheless, nosotros haven't seen novel lows inwards Cumulative Money Flow, suggesting to a greater extent than or less drying upwards of selling during the recent decline.
The lessened selling, however, has non translated into aggressive buying. We are exclusively modestly off the recent cost lows, too five-day coin flows convey remained negative. As amongst too then many of the other sectors, we've yet to meet sustained buying involvement that would Pb us to hold off a major modify of trend.
.
Sunday, August 13, 2006
Info!! Thematic Shifts Amid Stock Marketplace Sectors
Going into tomorrow's Fed announcement, we've seen meaning changes inwards sector themes. Many of the sectors that were nigh beaten downwardly during the market's selloff are forthwith performing well. Interestingly, this has occurred at the same fourth dimension that Treasuries--which had been strong during the selloff amongst the flying to quality--have sold off. It appears that nosotros accept been making a gradual shift toward risk-taking amidst stocks. This has helped the consumer discretionary, financial, together with technology scientific discipline stocks inwards particular.
Below are the 8 S&P 500 sectors that I rails closely, along amongst their Technical Strength reading (a mensurate of short-to-intermediate term trending) together with the per centum of stocks inside the sector trading inwards a higher house their 50-day moving averages:
Materials (XLB): -60 (54%)
Industrials (XLI): +140 (77%)
Consumer Discretionary (XLY): +360 (70%)
Consumer Staples (XLP): -120 (59%)
Energy (XLE): +240 (81%)
Health Care (XLV): -200 (51%)
Financial (XLF): +220 (65%)
Technology (XLK): +260 (70%)
Some of the sectors that had been strongest during the marketplace weakness (Consumer Staples, Materials) accept been weak of late. Consumer Discretionary shares, which had suffered amongst recession fears, accept bounced dorsum dramatically.
I volition endure watching to reckon how the Fed coming together affects these potentially of import thematic shifts.
RELEVANT POST:
Sector Money Flows
.
Below are the 8 S&P 500 sectors that I rails closely, along amongst their Technical Strength reading (a mensurate of short-to-intermediate term trending) together with the per centum of stocks inside the sector trading inwards a higher house their 50-day moving averages:
Materials (XLB): -60 (54%)
Industrials (XLI): +140 (77%)
Consumer Discretionary (XLY): +360 (70%)
Consumer Staples (XLP): -120 (59%)
Energy (XLE): +240 (81%)
Health Care (XLV): -200 (51%)
Financial (XLF): +220 (65%)
Technology (XLK): +260 (70%)
Some of the sectors that had been strongest during the marketplace weakness (Consumer Staples, Materials) accept been weak of late. Consumer Discretionary shares, which had suffered amongst recession fears, accept bounced dorsum dramatically.
I volition endure watching to reckon how the Fed coming together affects these potentially of import thematic shifts.
RELEVANT POST:
Sector Money Flows
.
Saturday, June 24, 2006
Info!! A Quick Review Of Stock Marketplace Pose Sectors
With Thursday's powerful rise, nosotros had 809 stocks across the NYSE, NASDAQ, as well as ASE register fresh 65-day highs as well as 1257 tape novel 20-day highs. By contrast, nosotros had 227 as well as 604 novel lows, respectively. While these numbers are below peaks recorded a few weeks ago, they're a meaningful turnaround from recent weakness. Demand, a mensurate of strong upside momentum, shut at 163; Supply at 24. That indicates that the ascension was broad, affecting the bulk of issues. This is equally good reflected inward the relative describe of the modest caps, amongst the Russell 2000 futures hitting a post-March cost high.
My technical describe mensurate is a method of quantifying cost trending deportment over a short-to-intermediate term fourth dimension frame. Here's how the S&P 500 sectors await at acquaint inward damage of technical strength:
MATERIALS: -160
INDUSTRIALS: -40
CONSUMER DISCRETIONARY: +220
CONSUMER STAPLES: +220
ENERGY: +180
HEALTH CARE: +280
FINANCIAL: -320
TECHNOLOGY: +340
What nosotros tin laissez passer on notice meet is that, equally a group, there's been a dainty turnaround from recent lows, exactly nosotros maintain to meet real mixed sector performance. The weakness inward the materials sector as well as the restrained describe of the liberate energy shares are especially noteworthy, equally commodities quest hold been surgical physical care for leaders of late.
Technology remains a surgical physical care for leader, which is consistent amongst my recent findings on coin flows. The big story, perhaps, remains fiscal shares, which maintain to lag badly. We've seen many steps taken to stabilize vulnerable banks, as well as these quest hold even as well as hence to interpret into meaningful, sustained confidence inward the sector. This remains a potential Achilles heel for the market's attempted recovery.
RELATED POST:
Money Flow Analysis
My technical describe mensurate is a method of quantifying cost trending deportment over a short-to-intermediate term fourth dimension frame. Here's how the S&P 500 sectors await at acquaint inward damage of technical strength:
MATERIALS: -160
INDUSTRIALS: -40
CONSUMER DISCRETIONARY: +220
CONSUMER STAPLES: +220
ENERGY: +180
HEALTH CARE: +280
FINANCIAL: -320
TECHNOLOGY: +340
What nosotros tin laissez passer on notice meet is that, equally a group, there's been a dainty turnaround from recent lows, exactly nosotros maintain to meet real mixed sector performance. The weakness inward the materials sector as well as the restrained describe of the liberate energy shares are especially noteworthy, equally commodities quest hold been surgical physical care for leaders of late.
Technology remains a surgical physical care for leader, which is consistent amongst my recent findings on coin flows. The big story, perhaps, remains fiscal shares, which maintain to lag badly. We've seen many steps taken to stabilize vulnerable banks, as well as these quest hold even as well as hence to interpret into meaningful, sustained confidence inward the sector. This remains a potential Achilles heel for the market's attempted recovery.
RELATED POST:
Money Flow Analysis
Subscribe to:
Posts (Atom)