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 |
When the economy slows, commodity prices are usually at risk of falling. That hasn't happened so far in this slowdown. Now, the commodity related stocks are starting to move higher again after falling along with the rest of the market. Industrials, materials, energy, utilities, precious metals, are commodity related sectors and showing strength along with the emerging market index.
Is this a trap to draw us back into these stocks just before commodities finally correct lower, or is this confirmation of the unstoppable commodity secular uptrend?
Speaking of secular trends, the defense industry bottomed out before the Iraq invasion and has barely paused in its uptrend. This trend doesn't look like it is slowing anytime soon either. No matter who is elected, strong military spending will probably continue.
Another secular trend is infrastructure rebuilding. That is repairing the crumbling bridges and roads in the developed countries and building the infrastructure of the developing countries.
Back to the secular uptrend that started this discussion, commodities. From this chart, would you know there is a brutal worldwide selloff in stocks taking place? So far it looks like I was way too quick to call for a correction in this group.
