Week 9 Alternate Sectors Trending
I reviewed the major markets and the SPX sectors this morning before markets opened for trading. Nothing much would have changed on their trending after today’s market action. It was unsurprisingly a dull day perhaps because the action would be later this week with the Fed chairman events.
I wanted to round out the analysis by looking at the trending of the alternate sectors and indexes that I track.
Trending Heat Map today:
Trending Heat Map 2 weeks back:
Observations and Conclusions:
The Trending heat map looks better with the first column turning green for several sectors. We see this in the major markets and the SPX sectors as well. However, other than the Dollar Index UUP and the US Natural Gas UNG, no sector has turned back to short-term bullish yet. So, in general, I intend to wait before going long anything.
I am long both UUP and UNG using call options. I am looking for a good day to get out of the trades as I do not feel much confidence in them anymore.
Energy is looking interesting again. The XLE, XOP and OIH are all looking better. The USO is trending well. Also, TAN and ICLN looking better.
Metals and Mining may be coming back as well. The XME, GLD, GDX and GDXJ are faring better. Silver is still in the doldrums. Note that XLB is also trending better.
Homes, Real Estate and Construction look stuck for the most part. Nothing to talk there as of now.
The Technology sector is interesting. We already saw in the SPX sectors analysis that XLK and XLC are among the better ones. SMH, KWEB and IGV are looking better. XBI, ARKK and ARKG all retreated somewhat.
Among Financials XLF and ARKF got a bit better. And while KBE is doing better, KRE is not.