Week 36 Sectors Analysis
I expanded my coverage of sectors to cover the S&P Sectors as well as alternate and thematic sectors that have sufficient trading volume. Below is their week-by-week ROI over the last 6 weeks.
Clearly this week was very strong for almost all sectors. US Oil was slightly down, and US Natural Gas gave up a lot of its prior gains. So, after 3 down weeks this is either a bounce back or the beginning of a reversal.
The big observation for me was how strong the clean energy and related sectors were this week. Solar, Water, Environment, Lithium and global clean energy were up strongly.
Looking at total returns over various periods shows a lot of red as expected.
The year-to-date big winners are all the traditional energy sectors: XOP, XLE, USO and UNG. US Natural Gas has returned +119% this year and is the top performer.
Looking at the current trending heat map:
It is an interesting trending heat map. As expected XOP Oil & Gas and XLE Energy are perfectly bullish. However, US Oil USO is mostly bearish. So, is this a transition situation where overall Energy is losing its steam?
The Clean Energy instruments all mostly look interesting. As we saw in the ROI analysis, their recent ROI has been good. Plus, their trending is looking mostly transitioning bullish.
TAN (Solar), PBO (Water), PBW (Environment), LIT (Lithium), IGE (North America Natural Resources) and ICLN (Global Clean Energy) all look good.
Overall, the sectors are displaying very similar trending and performance as the major markets I reviewed yesterday. So, the conclusion is the same: we need to see if this is the beginning of a reversal or just a minor reversal in a bearish trending market.