Online Trading Sector Performance

Ralph May 17th, 2008

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If you’d like a copy of our FREE weekly sector performance report covering over 270 specific sectors of the market and occasional insights from us please leave us your name and email address in the form below …

If you, or someone you know is one of those people who thinks technical analysis is a bunch of smoke and mirrors then print yourself a chart of the DJ-30 and SP-500 with the 200 simple moving average overlaid. After a quick glance, if you still think you don’t need to pay attention to widely followed chart features such as the 200sma than you are either too rich to care or have already lost all your money by not doing so.


TradingSolutions

Last weekend we stated “Looking ahead to next week we see a resumption of the uptrend as most likely with the point of reckoning being the sma200 for most indexes. It would be best to clearly blast through the sma 200 next week to convert it to new support. Otherwise there will be much more waffling around, aka consolidation.” Well, we had the up week and stalled just below the sma200. So there was clearly not enough energy in this up leg to blast through the sma200 so, as we mentioned, expect some waffling around now. It looks to us like the market used up a great deal of its energy this week just in arriving at the sma200. Overall, we would expect some consolidation next week. There are probably so many traders out there expecting the blast through to happen next week that what might happen is a head fake early in the week above the sma200’s and then back under for more consolidation.


Breadth for the overall market was roughly in the order of +52%, very similar to week ending April 18, which also led to consolidation the following week. In your FREE Sector Performance report you will notice the broadest buying in the Transportation, Energy & Oil, Semiconductors, Materials, Retail, Real Estate and Utility Sectors (among many others). You will also notice that only 13 sectors failed to have stronger than 0% breadth, this is a very strong signal. There really is no sector that had very broad selling last week except for Medical Practitioners, they need a break anyway, wink. But overall, our take on the market at this juncture is holding confidence to get over the sma200, but not necessarily next week.  The FREE report will give you all the detail you need.

We invite you to learn more about the huge advantage breadth analysis gives you as a trader or investor. As you can see in the table above we track 11 Major US Stock Market Indexes and Averages, 23 important Exchange Traded Funds (ETF’s) and all of the widely followed Hemscott Financial Data North American Industry Groups.

If you’d like to receive any previous Weekly Sector Breadth Reports just let us know!

Good Trading!

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