Stock Market Sectors Watch

I last looked at the sectors early June. So, it is time to review the 15 stock market core sectors I track. The picture is not pretty at all:

All Sectors are trending bearish

This is in line with the major market indices indicating extreme bearishness and oversold conditions. Even Energy, which has been hot this whole year so far has turned bearish and showing losses for all periods through the last 3 months.

Potential Leaders

Interestingly, over the last week and last month, the Biotech sector seems to be doing the best. Note that Biotech is still one of the worst performing sectors year-to-date down -35%. And certainly, the trend has not turned bullish yet. But it has made a strong push up over the last week.

The Healthcare and Real Estate sectors also showed some strength over the last 5 days. For the year Healthcare is down -12% and Real Estate is down -23%. And both are still trending bearish.

So, it remains to be seen if these are the sectors that lead the markets back up.

Conclusion

Nothing is still looking good enough to make any bets yet. However, there could be some green shoots developing. Yesterday’s losers could turn out to be the leaders in the reversal. I will be watching and be ready to deploy capital.