Sector action
The Sector action during this market correction is interesting and shows some early trends of likely mover in next couple of months. The sector attracting buying at this stage are:
MG327,Cleaning Products
MG345,Dairy Products
MG348,Beverages-Wineries & Distill
MG416,Regional-Southwest Banks
MG442,Reit-Office
MG717,General Entertainment
MG733,Drug Stores
MG771,Major Airlines
MG772,Regional Airlines
MG845,Telecom Services-Domestic
None of these sector have the potential to lead a sustained rise. The airline sector is highly leveraged sector and is benefiting from the years of cost cutting, consolidation and capacity reduction. Many of the stocks in this sectors(LCC, CAL, AMR, GOL) have already made 100% plus moves.
Sectors leading to the downside have all the former high flyers. The oil move has been done for long time to come and lot of the stocks in this sector are headed much lower.
MG124,Oil & Gas Drilling & Explorat
MG125,Oil & Gas Equip & Services
MG133,Aluminum
MG311,Appliances
MG524,Long-Term Care Facilities
MG528,Medical Practitionersi
MG632,Manufactured Housing
MG636,Heavy Construction
MG752,Building Materials Wholesale
MG753,Industrial Equipment Wholesale
MG327,Cleaning Products
MG345,Dairy Products
MG348,Beverages-Wineries & Distill
MG416,Regional-Southwest Banks
MG442,Reit-Office
MG717,General Entertainment
MG733,Drug Stores
MG771,Major Airlines
MG772,Regional Airlines
MG845,Telecom Services-Domestic
None of these sector have the potential to lead a sustained rise. The airline sector is highly leveraged sector and is benefiting from the years of cost cutting, consolidation and capacity reduction. Many of the stocks in this sectors(LCC, CAL, AMR, GOL) have already made 100% plus moves.
Sectors leading to the downside have all the former high flyers. The oil move has been done for long time to come and lot of the stocks in this sector are headed much lower.
MG124,Oil & Gas Drilling & Explorat
MG125,Oil & Gas Equip & Services
MG133,Aluminum
MG311,Appliances
MG524,Long-Term Care Facilities
MG528,Medical Practitionersi
MG632,Manufactured Housing
MG636,Heavy Construction
MG752,Building Materials Wholesale
MG753,Industrial Equipment Wholesale
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2 comments:
I like the site but hate the ads. But if they help pay the bills oh well.
You say that Ois is done for a long time to come. I disagree. I think oil will be bought everytime it dips below 70 for the rest of the year. I also think the metals, miners and drillers are going to continue to provide as much depth and breadth to this market as you can possibly get during the summer. Remember a summer rally only requires a small short squeeze and it is game over and done.
But if your theory is correct and oil is done then the airlines will see another 100% move since the only thing left between most of them and profits is cheaper gas. Contracts they made a year ago are running out and they probably couldn't set contracts this far out. And not just the airlines but most of heavy industry will also benefit.
So how do you come to your conclusions. And while I agree that the last bull market is not repeated in this one (read today someone still repeating the crapvision mantra regarding tech leading the rally) why can't something else lead to the top?
I based my oil stocks analysis based on number of oil stocks going below a certain % of their yearly high. It clearly indicates no buying of dips this time. It has been the biggest drop since start of Energy sector rally. From around 100 stocks two months ago only 11 today still have retained the top of their range.
The airlines and transport sector are indicating that oil top also.
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