ChristopherCarrollSmith

Consumer staples and utilities to gain while market pulls back

Long
AMEX:RHS   Invesco S&P 500 Equal Weight Consumer Staples ETF
Nearly every single sector in the entire market is either overbought or down-trending right now, with two exceptions. Consumer staples and utilities are both climbing out of oversold territory and should gain Friday while the rest of the market pulls back.
Comment: Well, I managed to pick two loser sectors. Utilities only slightly underperformed the S&P 500, but consumer staples were one of the biggest losers of the day. The day's biggest winners were Internet retail and banking, both of which had sudden and unexpected reversals of yesterday's stochastic signals. Transportation, energy, and communications also outperformed the S&P. It may be that I need to place greater weight on the MACD and less weight on the stochastic. I obviously have more practicing and experimenting to do before I can hope to pick sector winners!
Comment: One thing I neglected to notice that helps explain the consumer staples reversal is that consumer staples were right up against resistance from their 2-year high. They appear to have rebounded from that resistance level today.
Comment: I spoke too soon. Utilities actually closed the day positive against the S&P 500.

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