Monday Sector Strength
Disclaimer: All charts and comments are intended for education and discussion purposes only. No investment recommendations are being offered. Please do your own research and take responsibility for all investment decisions that you make. Questions and comments related to this post are encouraged. | MON - Sector Strength | TUE - Interest Rates | WED - Market Breadth | THU - Commodities & Currencies | FRI - Market Sentiment | SAT - Bullish Percents | About | contact: HeadlineCharts@gmail.com |
Seems like this market will never bottom out. But when it does, the focus for any investment should probably be growth over value as the weekly chart above shows. Growth was trounced in this bull market until mid 2007.
Late cycle stocks have yet to take their beating in this market, but their turn is probably coming. Late cycle is the heavily industrial, materials and energy stocks. Actually, it is probably the oil, gas and coal companies still holding this group up at the moment.
Utilities are outperforming the Industrials, confirming lower rates ahead. Industrials outperforming Transports confirming slow growth ahead. Bonds outperforming Industrials, confirming lower inflation expectations.
There is always one unexpected bright spot in even the worst market. Usually biotech would not be considered a good investment choice late in a bull market, but this index is really holding up well. Squeezed under long-term resistance and pushed higher by longer uptrend support. If it breaks to upside this could be a very nice opportunity.
