Week 11 Alternate Sectors Trending and Performance
Finishing up the weekly analysis by reviewing the Alternate Sectors that I track.
Trending Heat Map
The US Home Construction ITB is interesting. It is trending perfectly bullish; however, the price movement is fairly flat over the last 4 weeks. This is because the trend lines are mostly bunched up with the price and I happen to review when we have a perfectly bullish trending. That is to say that I will not read too much into ITB other than it is holding up better than others in this volatile market.
The SMH and IGV are trending perfectly bullish and are likely catalysts in the Technology sector doing so well. I have not played either of these so far. The question is whether they still have strength and momentum to keep doing well or will give back some of their gains now.
The precious metals have been trending well with GLD, GDXJ and GDX all trending perfectly bullish. I hold call options on all of them. SLV is also getting there.
Performance
What sticks out to me are KRE and KBE. Of course, we have a banking crisis right now. But, as we can see, they have been poor through all the periods of observation. I have been short KRE and continue to remain so. I think it is hard to resolve the concerns around the regional banks.
The ARK funds have been performing very well this year so far. But, as we can see, they are coming of really some bad performance over the last year. And, despite their strength this year, over 1 year the losses are still quite big.
Oil and energy ETFs are doing very poorly this month so far. Precious metals and related are still looking strong. So, we have clear winners and losers. If markets continue to trend bearish I will press on the losers. If markets turnaround and start trending bullish, I will go long the winners. Keep it simple.
As of now I am short KRE and long GLD, GDX and GDXJ.