Time for this week’s episode of (sectors) vs. SPY.
Long-term yields are elevated and yet the Financials (and especially our friendly pigs, the Banks) are getting drubbed vs. the broad market. Leadership is firmly negative. Relative Energy is trying to establish a new intermediate trend, H/C is and has been THE leader since bottoming out in May. Industrials are sneaky constructive/bullish and yet their former running mate, Materials are robo-trending down vs. SPY. Relative Tech is sideways now on the daily view.
The weekly chart shows the bad situation in Financials, the bounce within a downtrend in Energy, Healthcare continuing to work on changing the down trend, Industrials only testing a breakdown, Materials burrowing southward and Tech still firmly in big picture leadership mode.
An aside>>>> Funny how daily and weekly charts say different things. It’s why we use ’em both, not to mention monthlies and on occasion, in-day day trader stuff like 60 min., etc. Changes have to start somewhere and that somewhere is on the shorter time frames. But there is also a lot more noise in the technicals the shorter you go (says says this man who stares at charts).
Daily REITs are becoming a mess, leadership-wise. Retail even more so. Utes & Tranny sideways, as is Biotech. Medical Device is pulling back but it was overbought both nominally and relatively.
REITs are a mess on the weekly, Utes as well. Transports are sideways, Biotech gently trends down (but remember, these are relative charts used to gauge trends only and the nominal technicals may tell different stories), Medical Device is being pleasured (and momo’d) by the Armanis on Wall St. whereas once upon a time it was simply a solid defensive sector that relatively recession resistant. Very overbought. Retail could have a “Rut Roh!” moment shaping up for latecomers.
Thank you once again for tuning in. Join us next week (maybe, if I think of it) for another exciting episode of… vs. SPY!
Subscribe to NFTRH Premium (monthly at USD $33.50 or a 14% discounted yearly at USD $345.00) for an in-depth weekly market report, interim market updates and NFTRH+ chart and trade setup ideas, all archived/posted at the site and delivered to your inbox.
You can also keep up to date with plenty of actionable public content at NFTRH.com by using the email form on the right sidebar and get even more by joining our free eLetter. Or follow via Twitter @BiiwiiNFTRH, StockTwits or RSS. Also check out the quality market writers at Biiwii.com.