Info!! Sector Update For May 18Th

Last week's sector update noted that "I volition require to run into the weakness alongside Technology shares spread to other growth-oriented sectors earlier final that the bull is receive to gyre over inwards whatever meaningful way." As nosotros tin run into from the nautical chart above, that weakness did indeed occur, equally nosotros saw reduced Technical Strength alongside Materials, Consumer Discretionary, too Energy shares.

Recall that Technical Strength is a quantitative mensurate of short-term trending, with sector values ranging from +500 (very rigid uptrend) to -500 (very rigid downtrend). Values betwixt -100 too +100 propose a non-trending environment.

Here is how the sectors broke downwardly equally of Friday's close:

MATERIALS: -80
INDUSTRIAL: +120
CONSUMER DISCRETIONARY: -80
CONSUMER STAPLES: +60
ENERGY: +20
HEALTH CARE: +220
FINANCIAL: +240
TECHNOLOGY: -40

Note that virtually of the sectors are inwards neutral trending mode, too none are equally however registering downtrend signals. That is telling us that, too thus far, the marketplace pullback has been a correction inwards the bull swing that we've had; non a reversal of overall marketplace trend. That is too consistent with the marketplace perspective of late posted.

I volition endure watching closely early on inwards the calendar week to run into if the market's increase themes too sectors tin reassert themselves. As always, updated marketplace indicators volition endure posted via Twitter earlier the marketplace opened upwards (follow the tweets here). I'll too endure posting a full general indicator review afterwards inwards the day.
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Info!! High Yield, Depression Functioning In Addition To Other Marketplace Ideas

* Unyielding Yield Play - One dominion that's held consistently inward the recent marketplace is that reaching for yield has toll investors inward performance. I took a await at the FINRA data in addition to the numbers were eye-opening. Here are the advance/decline numbers this past times calendar week for bonds inward their investment degree index in addition to bonds inward their high-yield index (in parentheses):

Tuesday, Nov. 18th: 1611/1232 (347/639)
Monday, Nov. 17th: 1374/1422 (317/650)
Friday, Nov. 14th: 1540/1140 (401/555)
Thursday, Nov. 13th: 1379/1471 (360/631)
Wednesday, Nov. 12th: 1607/1390 (334/728)

As nosotros tin see, advancing bonds in addition to decliners accept been pretty fifty-fifty for the final 5 trading days amidst the investment degree issues. Decliners accept been ahead of advancers past times well-nigh 2:1 amidst the high-yield bonds, however.

Significantly, nosotros had 266 out of 3211 investment degree bonds traded on Tuesday brand fresh 52-week lows, less than 10% of the group. Among high-yield bonds, 285 of the 1118 bonds traded made novel annual lows, to a greater extent than than 25% of the group. Bond pricing is an fantabulous view gauge, when you lot consider that pricing is reflecting perceived odds of default.

* Twitter Update - You may accept noticed that I'm adding to a greater extent than weblog links to my Twitter posts; I'll also last tracking daily coin stream figures for the Dow, amongst about observations well-nigh stream numbers specific to marketplace sectors. Subscription to the Twitter postings is free, of course; you lot tin sign upwards on my Twitter page or merely rail the final 5 posts on the weblog nether "Twitter Trader".

* Blog Traffic - We hitting novel lows today; the marketplace was actually ugly throughout the session. Still, I'm non seeing the expansion of weblog traffic the agency I did during the Oct routs. Over the weekend, the numbers were to a greater extent than consistent amongst levels seen at marketplace tops, equally I noted inward a Twitter post. It's non a perfect measure, but it's held upwards pretty good during this catamenia of weakness.

* Free Webinar - Dave Mabe of StockTickr is speaking at the Las Vegas Traders Expo tomorrow, in addition to his verbalize on automated trading volition last webcast gratis of charge. Sweet.

* Lots of Good Reading - Fresh links from The Kirk Report, including a await at sector P/E ratios in addition to to a greater extent than problem ahead from derivatives.
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