Sector Analysis

All sectors look good except Biotech

From time to time I like to do sector analysis to assess which stock market sectors are doing well and which are not. A lot has changed this week already and for the most part to the upside. Here is the summary of my assessment:

We can see that except for Biotech all the sectors have positive returns. Biotech is the only sector out of the 15 sectors I analyzed that is bearish and also has losses no matter time frame you look at this year.

Surprisingly Healthcare has also been weak although it may be turning the corner.

Technology is fine looking at the year to date but lately it has been lagging the other sectors which is somewhat surprising.

I did this same assessment 4 days back and things have gone much better since. Here is the same table from then:

We can see there were a lot more sectors with negative 1-month returns just 4 days back. Also, there were several sectors that were trending neutral.

Needless to say this improvement bodes well for the overall markets and certainly the probabilities of markets going higher are higher.