Stock Market Trading & Investing Analysis

Hottest and Coldest Stock Market Sectors

Ralph April 19th, 2008

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Who else was accumulating long positions along side us while the DJ-30 was testing it’s April 1st lows on Tuesday and Wednesday morning last week? We mentioned last weekend that this would be a great place to get long as some kind of bounce was likely there. We told our readers to expect some weakness on Monday and then the rest of the week should show upside progress. This is exactly what happened.

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The market was surprisingly strong this week, taking out what had been a well fortified resistance zone. The DJ-30 managed to take out over 3 months of resistance on Friday, this will likely (and has already likely) converted many shorts to the light, making support out of what was only a few days ago sturdy resistance. The SP-500, however, has only tested it’s early February highs and closed just above it’s late February highs. This leaves some doubt as to whether or not the resistance here has been converted to support. Breadth for the market overall this week was very similar to week ending April 4th which led to downside the following week. The difference here is that week stopped just under resistance whereas this week, by many standards, resistance has been penetrated, and with good volume. We would expect to see some consolidation and even a bit more upside progress next week. Any downside exploration should be met with buying in what was the prior resistance zone.

This week we have 18 sectors with +100% breadth and only 22 sectors with less than 0% breadth. You will be able to easily sort the report by the “(A-D)/Total” column to see which sectors where the strongest and weakest. Enjoy!

We had previously published the weekly reports live on this blog but decided to step up our generosity another notch and give it away in an excel format (we previously charged $5 for this) for FREE from now on! The feedback we’ve been getting from our customers is that the Excel format is much more user friendly than the blog format.