Info!! Sector Update For November 22Nd

Last week's update institute the S&P sectors inward moderate downtrends. Influenza A virus subtype H5N1 expect at the electrical current Technical Strength readings shows that the downtrends convey intensified:

MATERIALS: -420
INDUSTRIAL: -280
CONSUMER DISCRETIONARY: -320
CONSUMER STAPLES: -300
ENERGY: -260
HEALTH CARE: -300
FINANCIAL: -460
TECHNOLOGY: -300

These are about of the weakest figures of the year. In the recent by (2007/2008), such extreme negative readings convey tended to precede intermediate-term bounces. This final occurred belatedly inward October. I'll convey to a greater extent than to order almost this inward Monday's indicator review.

Money menstruum was quite positive for all sectors on Friday, merely the Dow Jones Industrial stocks nonetheless finished at -$165 1000000 for the week. The weakest menstruum numbers were seen amid the wellness assist in addition to consumer services stocks; the strongest readings came from telecommunications, energy, consumer goods, in addition to utilities.

For the month, coin menstruum was weakest for consumer services in addition to fiscal stocks; strongest for telecommunication in addition to wellness care. As has been the illustration for a piece now, monthly coin menstruum amid Dow stocks remains inward negative territory.
.

Info!! Sector Update For November 22Nd

Last week's sector review noted trace with large cap stocks, simply weakness inside specific sectors in addition to with small-scale caps. This by calendar week failed to come across a broadening of the marketplace rally, in addition to nosotros moved lower every bit the calendar week progressed. That left the 8 sectors that I runway weekly (above) inward a mixed Technical Strength status.

(Recall that Technical Strength is a proprietary short-term mensurate of trending in addition to varies from a real bullish +500 to a real bearish -500, with scores betwixt -100 in addition to +100 indicating no important directional tendency).

What nosotros come across is that Health Care stocks are the entirely grouping inward a rigid uptrend; Financial shares rest inward a downtrend. Other sectors are either non-trending or weakly trending higher. The greatest week-over-week turn down inward trace occurred with Consumer Discretionary in addition to Energy stocks, every bit economically-sensitive sectors weakened overall.

Here is how the sectors looked every bit of Friday's close:

MATERIALS: 220
INDUSTRIAL: 120
CONSUMER DISCRETIONARY: 80
CONSUMER STAPLES: 220
ENERGY: -40
HEALTH CARE: 320
FINANCIAL: -200
TECHNOLOGY: 80

We tin come across from the nautical chart higher upward that Financial stocks accept been inward a negative trace fashion for several weeks running. This bears watching: it is odd for a sector to non demo greater rotation during a menstruation of by in addition to large line of piece of employment solid index prices. Such persistent weakness suggests that investors may live on anticipating farther bad tidings from this substitution sector.

Overall, however, the sector readings are neither meaningfully overbought or oversold. They're consistent with a consolidating/correcting marketplace that has moved significantly higher since slow October, simply are non at levels that accept been seen at recent intermediate-term bottoms. As always, I volition live on tracking marketplace trending via my handbasket of stocks each morning time prior to the marketplace opened upward via Twitter (check out this post.
.

Info!! Sector Update For February 22Nd

Last week's sector review concluded, "Clearly we've weakened since final calendar week as well as forthwith are testing major back upward inwards the 800 expanse of the S&P 500 Index. We unopen Fri with novel 20-day highs across the NYSE, NASDAQ, as well as ASE at 492; novel lows were 596. As long every bit nosotros cannot sustain a plurality of novel highs, I await the marketplace position to breach that 800 order as well as examination the acquit marketplace position lows of November."

We did, indeed, sustain a plurality of novel lows as well as convey moved toward the Nov lows on potent selling pressure. As noted inwards my recent post, the over 4000 novel 20-day lows observed on Fri was a order of weakness seen alone xi times since belatedly 2002.

As nosotros expression at the Technical Strength of the viii S&P 500 sectors that I follow each week--a proprietary short-term stair out of trending--we tin dismiss run across farther show of this wide weakness:

MATERIALS: -440 (14%)
INDUSTRIAL: -440 (2%)
CONSUMER DISCRETIONARY: -440 (8%)
CONSUMER STAPLES: -180 (15%)
ENERGY: -440 (0%)
HEALTH CARE: -360 (31%)
FINANCIAL: -480 (1%)
TECHNOLOGY: -340 (11%)

Recall that the Technical Strength of each sector varies from -500 (very potent downtrend) to +500 (very potent uptrend), with values of -100 to +100 indicating no important trend. As nosotros tin dismiss see, the sectors are to a greater extent than oft than non inwards a strongly downtrending mode, with alone the defensive Consumer Staples grouping showing less weakness. In the recent past, such highly negative readings convey represented oversold weather condition that convey led to short-term rallies.

When nosotros expression at the percent of stocks inwards each sector closing higher upward their 20-day moving averages (in parentheses), every bit noted yesteryear Decision Point, nosotros give away that all sectors exhibit fewer than one-half of their components higher upward that benchmark. Only the defensive Health Care sector shows a meaningful percent of issues higher upward their moving averages. The Energy sector has shown detail deterioration inwards the final week, as well as Financial issues are notably weak.

In sum, nosotros give-up the ghost on to run across wide marketplace position weakness, though a bounce from oversold weather condition would non endure surprising. It is non only the weakness, but the blueprint of sector weakness--with relative forcefulness inwards defensive sectors as well as relative weakness with economically-sensitive ones--that suggests that nosotros convey soundless to plow the corner on the bear.
.