Info!! Sector Update For November 1St

With the market's sudden bounce this past times week, I idea I'd accept a fresh await at the major S&P 500 sectors as well as their trending behavior. The handbasket of stocks that I follow include v highly weighted issues from each of viii sectors. I purpose a stair out that I telephone band Technical Strength equally a means of quantifying trending behavior; it is somewhat akin to the gradient of a goodness of agree regression line. Ratings nigh aught propose no trend; a perfect uptrend would last scored +100, as well as a perfect downtrend receives a -100. Since I amount the scores of the v stocks for each sector to derive a tendency rating for that sector, a maximum (perfect uptrending) score would last +500; a minimum (perfect downtrending) score would last -500; as well as a neutral score would last betwixt -100 as well as +100.

For the calendar week ended 10/31/08, nosotros had 23 stocks inward the handbasket trading inward uptrends, 5 neutral, as well as 12 inward downtrends. This is a marked improvement from final week, when--at ane point--all xl stocks traded inward downtrends.

Here are the summed ratings past times sector:

MATERIALS: -180
INDUSTRIAL: +120
CONSUMER DISCRETIONARY: +200
CONSUMER STAPLES: +40
ENERGY: 0
HEALTH CARE: +60
FINANCIAL: -20
TECHNOLOGY: +20

What nosotros tin encounter is that almost the sectors are trading inward a relatively neutral mode. Consumer discretionary shares, which had been amid the almost beaten downwards during the decline, induce got rebounded relatively good during the past times week. Materials stocks proceed a chip weaker than the other sectors, reflecting continued recessionary concerns. I volition last tracking these numbers closely to encounter if nosotros tin interruption out of the neutral condition to the upside, or if the recent forcefulness is solely business office of a larger as well as longer bottoming procedure for this market.
.

Info!! Sector Update For November 1St

Last week's sector review noted a pullback to a multiday trading gain equally business office of what appeared to live on a topping procedure next September's momentum highs together with October's cost high. That scenario continued to unfold this by week, equally nosotros broke sharply below the trading gain together with shut nigh the week's lows. As nosotros tin forcefulness out reckon above, this has turned 5 of the 8 S&P 500 sectors that I rail bearish inwards Technical Strength, amongst the others giving neutral readings.

Note: Technical Strength is a proprietary mensurate of short-term trending; sector readings vary from +500 (strong bullish trend) to -500 (strong bearish trend), amongst scores betwixt -100 together with +100 indicating a neutral trend.

Here are the private sector readings equally of Friday's close:

MATERIALS: -300
INDUSTRIAL: -240
CONSUMER DISCRETIONARY: -200
CONSUMER STAPLES: -40
ENERGY: -100
HEALTH CARE: -140
FINANCIAL: -360
TECHNOLOGY: 20

What nosotros reckon is relative strength amid technology scientific discipline shares, which convey seen potent earnings, together with the defensive consumer staples stocks. Particularly weak convey been fiscal stocks together with economically sensitive raw materials shares. We saw a notable driblet inwards strength calendar week over calendar week amid unloose energy stocks, reflecting commodity weakness amid recent U.S. dollar strength.

Friday's considerable weakness next a rigid rally on Th was non a positive for the bulls. While it would non live on odd to reckon a short-covering bounce from here, I volition live on looking for farther signs of bottoming earlier committing to a resumption of the bull market. At this juncture, I am non viewing the electrical flow correction equally a fresh comport market, exactly equally an respite of a relatively novel bull market--not dissimilar what nosotros saw inwards early on 2004 next a steep rally off the 2003 lows. But we'll permit the incoming indicator information enjoin the story: tendency indicators, along amongst strength together with momentum measures, are updated each morn via Twitter earlier the marketplace open. You tin forcefulness out follow those here or hold an oculus on the 5 nearly recent tweets on the weblog page nether "Twitter Trader".

Note that we're going into a Fed coming together this coming week; that should touching how nosotros merchandise equally nosotros approach the announcement.
.