Week 45 Sectors Trending and Performance

Here is the trending heat map for the stock market sectors.

Every sector improved their bullish trending last week. Energy XLE was already perfectly bullish, and it stayed the same. Interestingly, Solar energy TAN also turned perfectly bullish. The only sectors that seem a bit behind are Utilities XLU and Communications XLC.

Note that stocks like Facebook FB and Google GOOGL are lumped under Communications XLC. That could be a reason why XLC is behind from trending perspective.

Here is the week-over-week performance for the Sectors.

Every sector delivered positive returns last week. The Semiconductors SMH, Solar TAN, Gold Miners GDX and the Homebuilders XHB had the best performance all delivering double digit returns. Disclosure: I am long GDXU which is the 3x leverage of the GDX by Micro Sectors. I will continue to hold until the trend changes.

The Technology sector XLK and the Communications sector XLC had strong bounce back last week. Note that many of the Big Tech stocks such as Apple, Amazon, Facebook, Google, Tesla and others form the best part of these sectors.

Here are the returns over various periods in time.

First thing to notice is that every sector is positive for the month of November to date and for the 1-month trailing period. Indeed, a very good sign. The Semiconductors SMH, Gold Miners GDX and Solar TAN are the best performers within these periods.

Interesting to see that both Silver SLV and Gold GDX have picked up steam and doing quite well recently. Of course, the Gold Miners GDX have been front-running the move in GLD. The Metals & Mining sector XME have also been strong. In fact, XME is one of only three in my tracking that is positive year-to-date.

Many of the sectors I track (16 out of 21) have turned positive over the last 6-month period. Of special note is that aside of the main Energy sector XLE, both Solar energy TAN and Global Clean Energy ICLN are showing strong returns.

At this time, I am only long the Gold Miners GDX using the 3x leverage instrument GDXU by Micros Sectors. Other than that, I am long the SPY and QQQ through call options.