- Market continues to be in bearish territory based on all Market Monitor indicators.
- Wednesday and Thursday was the only small bounce in this down move so far.
- Friday witnessed yet another 300 plus down day. The volume however was low.
- For medium term and longer term traders this market is not worth risking capital till there is a clear buy signal on Market Monitor.
- Most of the readings on MM have not yet reached extreme, which indicates likelihood of more downside and failure of any bounce at this level.
Let us take a closer look at some of the sector trends clearly visible currently on both long and short side.
Sectors where breakouts are still concentrated in our sector tracking methods are:
The Solar Energy stocks have given up their number one ranking and Fertilizer stocks are now number one sector. The speculative stocks in Solar Sector have had reversals while those with stellar fundamentals continue to hold well.
Medical Groups dominate the top 20 group list now. Medical group breakouts are the only breakouts which have had some follow through in last 10 -15 days. Medical group is a typical defensive group and it tends to do well in bear markets.
Energy stocks have had sporadic breakouts, but follow through is lacking and most seems to be heading in to bases.
The fertilizers stocks have recent good earnings, but most of them have stalled at this level. However in case of a bounce they may be first to bounce back.
Bases on stocks making 52 week high the top 6 Friday sectors were:
Concentrating your buys in top 2-3 sector from this ensures that you get in to sector before it starts moving in the sector ranking table.
Groups With The Greatest % Of Stocks Making New Highs
- Oil and gas US royalty
- Metal ores gold and silver
- Business Services
- Computer Software
Some sectors with large number of stocks like Medical and Retail can often show in both list. However the trend in retail stocks is predominantly down in recent months.