1. EMA's crossing down?
2.Price near support and is oversold.
3. If price breaks through bottom oval we could see a true retracement to support.
4. I price breaks through top oval, we could see a retracement to the upside.
Materials (XLB) led the sector list for the week, getting a massive boost on Tuesday and Wednesday after the Infrastructure bill passed the Senate. Industrials (XLI) also got a boost from the bill.
Financials (XLF) contented for the top spot, gaining from rising Treasury yields that positively impact performance for the sector. However, yields dropped on Friday,...
Several sectors rallied into the lead throughout the week, but Financials (XLF) came from behind to end the week as the top sector. On Friday, the sector added 2% on top of gains earlier in the week. The rally came as employment data was better than expected, sending Treasury yields higher and brightening the prospects for big bank performance tied to the yields.
This week's dip on the AMEX:SPY revealed something important within the Sector Rotation model. For the last quarter the Sector Rotation model has been giving mixed signals following the clear predictive path it forecasted coming out of March 2020. This recent price shock provided a glimpse into where the money is moving right now!
The Discretionary vs Staples ratio (captured via the $XLY and $XLP etf's) serves as one of many proxies for a potential "Risk Off" signal. While it had been "Risk On" for a number of months, the evidence is mounting that the trend has reversed and market participants are now moving towards more defense and less offense. Be cautious of a sudden and crowded rush...
Energy (XLE) and Real Estate (XLRE) led the sector list for the week, establishing their lead early in the week. Energy got a boost from the rise in oil prices on high demand. Real Estate is gathering momentum from rising housing and rental prices while also being a great hedge against inflation.
The focus on employment data released on Friday morning is clear in...
Discretionary vs. Staples = Economy Bullish / Economy Bearish
Ratio rising = Discretionary > Staples
Ratio falling = Discretionary < Staples
Often a leading indicator of the 10yr yield (TNX)
Will continue to track this potential new signal.
It was a mix of defensive and cyclical stocks that led the sector list this week. Only three sectors ended the week with gains, while the high growth sectors took the biggest declines.
Consumer Staples (XLP) topped the list with Utilities (XLU) in fourth place. Both are defensive sectors for investors. Real Estate (XLRE) was lower in the list but still...
I have this quotient in my watchlist to monitor the risk appetite of the market. The AMEX:XLY ETF (Consumer Discretionary) is a good indicator of high risk appetite because its holdings are more focus on growth therefore are more volatile. And the AMEX:XLP ETF (Consumer Staples) is more focus in value stocks, therefore less volatile.
AMEX:XLY with holdings...
Communications (XLC) did not top the sector list for a single day, but it's steady gains throughout the week put it at the top of the weekly chart.
Utilities (XLU) started the week on top. Investors were nervous on Monday about the lasting impact of the Suez Canal blockage and whether a $20b fire sale of Archegos investments would grow or even expand to other...
There were several change of winners and losers during a week that ended with the S&P 500 at a record close.
Technology (XLK) led for the first two days of the week, was sold off heavily on Wednesday and Thursday, but then ended the week with a huge gain on Friday, putting it in third place.
Utilities (XLU) took over the top spot on Thursday as investors became...
If you kept your eyes only on big tech and growth stocks, you might have missed that many sectors had fairly good advances this week. The sector chart supports the thesis that there is an outsized rotation in progress that is presenting as a correction, but that there is still a level of support in the broader equities market.
The top two sectors, Energy (XLE)...
These important sectors have not been booming for over a quarter (no Robinhooders around these sectors, and not worth a Reddit meme) -
- Telecommunications: T, VZ, TMUS
- Quick service fast food restaurants: MCD, YUM, WEN
- Consumer Staples (ETF is XLP): household products PG, CL, CLX: food MDLZ, GIS
Energy (XLE) led for a second week in a row as crude oil prices continue to rise and optimism for economic recovery to bring demand back to oil and gas as transportation, travel and leisure sectors bounce back.
Technology (XLK) and Health (XLV) led for Thursday as Energy pulled back for a day. However, Energy bounced back up to the week's highs on...
Real Estate (XLRE) and Utilities (XLU) are the top sectors for the week. Ouch!
None of the sectors ended the week with gains as the S&P 500 pulled back -3.31%.
Utilities led as the market opened on Monday morning. Communications (XLC) took a very brief lead on Tuesday, but the Real Estate took the top spot.
Consumer Staples (XLP) attempted to take the lead on...