Week 43 Sectors Trending and Performance
Here is the trending heat map for the sectors this week.
The Retail sector XRT is trending short-term bullish. The price has also crossed over its 50-day moving average.
The Oil and Gas sector XOP continues to trend perfectly bullish.
The Metals & Mining sector XME is trending short-term bullish. The price has also crossed over the 50-day moving average.
The Consumer Discretionary sector XLY is trending short-term bullish.
The Healthcare sector XLV is trending short-term bullish. The price has also crossed over the 50-day and the 200-day moving average.
The Utilities sector price just crossed over the 10-day and the 20-day moving average.
The Real Estate sector XLRE is trending short-term bullish.
The Consumer Staples sector XLP price is trending short-term bullish. The price has also crossed over the 50-day moving average.
The Technology sector XLK price is trending short-term bullish. The price has also crossed over the 50-day moving average.
The Industrials sector XLI has turned short-term bullish. The price has also crossed over the 50-day moving average.
The Financials sector XLF has turned short-term bullish. The price has also crossed over the 50-day moving average.
The Energy sector XLE continues to trend perfectly bullish. (Highlighted as it is a holding, and I will analyze this more closely)
The Communications sector XLC price has dipped back below the 10-day and 20-day moving average in line with the S&P 500. The 10-day did cross over the 20-day moving average. But I do not consider it bullish until all 3 conditions are met.
The Materials sector XLB has turned short-term bullish. The price has also crossed over the 50-day moving average.
The Homebuilders sector XHB looks better today. The price has crossed over 10-day, 20-day and the 50-day moving average.
The Biotech sector XBI seems to have picked up this week. It is trending short-term bullish plus the price has crossed over the 50-day and the 200-day moving average.
The US Oil price USO has crossed over the 10-day, 20-day and the 50-day moving averages.
The US Natural Gas UNG also did not show any change in its trending. It fell hard this week as well after falling big last week.
The Solar sector TAN price crossed above the 10-day and the 20-day moving averages.
The Semiconductor sector SMH price stays over the 10-day and 20-day moving average like last week.
The Silver metal SLV price dipped below its 20-day moving average this week.
The Water sector PHO price is trending short-term bullish now. The price has also crossed the 50-day and the 200-day moving averages.
The Environment sector PBW price crossed over the 10-day moving average. It was trending perfectly bullish last week.
The Lithium sector LIT price has crossed back below the 10-day and 20-day moving averages. The earlier momentum did take the 10-day over the 20-day though.
The Regional Banks sector KRE price is trending short-term bullish. The price also crossed over the 50-day moving average.
The Transports sector IYT price is trending short-term bullish.
The US Real Estate sector IYR is trending short-term bullish.
The US Home Construction sector ITB price has crossed over the 10-day, 20-day and the 50-day moving averages.
The North America Natural Resources sector IGE continue to trend short-term bullish. The price also stayed over the 50-day and the 200-day moving averages.
The Global Clean Energy sector IGE price stayed above the 10-day and crossed over the 20-day moving average. Interestingly, the 50-day moving average continues to stay over the 200-day moving average.
The NASDAQ Biotech sector IBB continues to trend short-term bullish. This week the price also crossed over its 50-day and 200-day moving averages.
The Gold metal GLD turned perfectly bearish this week.
The Gold Miners sector GDX price stayed over the 10-day and 20-day moving averages. This week the price also crossed over the 50-day moving average. However, with the GLD showing weakness not sure how to expect any strong move up by the GDX.
The FinTech sector FINX turned short-term bullish this week.
The Autonomous and Electric Vehicles sector DRIV price turned short-term bullish this week.
The Cloud sector CLOU price turned short-term bullish this week. The price also crossed over its 50-day moving average.
The Cybersecurity sector BUG price turned short-term bullish this week. The price also crossed over its 50-day moving average.
The Robotics & AI sector BOTZ price turned short-term bullish this week. The price also crossed over its 50-day moving average.
Here is the week-over-week performance of the sectors.
Just as the major markets have had 2 weeks of positive returns, the sectors have also mostly performed well 2 weeks in a row. Best sectors this week were Retail, Finance, Homebuilders, Biotech, Solar and Water.
Here is the performance over different periods in time.
For October, the best sectors have been Retail, Energy, Industrials, Financials and Natural Resources. Interestingly, Retail and Financials are both the best performing lists - the weekly and the monthly.
Chart analysis
XLE: Has had 10 straight up days. That worries me. I also do not like gaps in charts. See the gap around the 75 level which is unfilled as yet. There is no resistance above other than the 93 high reached in June. That also happens to be the 5-year high. So, this could be a case of too much too quick. I will sell my call options and book the profit on Monday.
XRT: This looks interesting to me. The price just overcame the immediate resistance level which was at 61.59 and now that becomes support. The price is currently at 63 and the next resistance is at 67 which is about 6% away. I also drew an overhead line touching the 2 recent highs that touches around the 70 level. So, to me it looks like I can play for a 2-3% move up from here on the price which will likely equate to a +20% move on the options.
XLF: The XLF had a strong move this week and just about cleared the end of the line I drew touching the 3 highs this year. It is approaching the next resistance level though and does not offer much room for the upside. It has strong momentum though, so I will not be surprised if it overshoots above that resistance which also looks like a weak resistance. So, I will trade some short-term options for a small upside continuation on this one.
For delta neutral trades, I will consider going short through puts on:
XLC: It made a recent low and seems to not be able to break to the upside. The trending also was bad compared to others.
