Off to eat some sushi, but before I do, here’s the update based on sector ETF performance for last week:
Consumer Staples [[XLP]] Neutral. Demand coming back into the sector . Momentum has been negative for eleven days now. Also has lost momentum on a three week time frame and now a five month time frame. Relative strength weaker than the market. This one is looking like it might rollover.
Consumer Discretionary [[XLY]]: Bearish. Weekly momentum has been negative for the past three weeks, but showed positive momentum the fnal four days of last week. Relative strength weaker than the market.
Energy [[XLE]]: Neutral. Strong potential to be range bound. No new buy signal, or sell signal. Weekly momentum has been negative for the past 3 weeks, and negative all last week, despite the run in oil. Relative strength stronger than the market, however.
Financials [[XLF]]: Bearish. Sell. Continuing deterioration. But, showed some positive momentum last week for the final four days of trading. Weekly momentum still negative for the past four weeks. Relative strength weak.
Health Care [[XLV]]: Bearish. Double bottom breakdown pattern. Momentum negative the past eleven days, and turned negative on a weekly basis after being positive for past nine weeks. Weaker RS than the market.
Industrials [[XLI]]: Neutral. Starting to weaken after a slightly bullish low pole reversal PnF chart pattern last week. Momentum has been negative the past eleven days and on a weekly time frame, the past four weeks now. Stronger RS than the market since March.
Materials [[XLB]]: Bullish. Double top breakout still intact. Has broken out to new highs after long period of consolidation from 39 – 42, but showing weakness recently. Momentum negative on a six day time frame, and negative on a weekly basis , the past four weeks (was three weeks last week). Still has stronger RS to the the market.
Tech [[XLK]]: Neutral. Consolidating. Bulls trying to push higher. PnF buy signal will be confirmed at 29. However, momentum negative on an eleven day basis and on a weekly basis, negative the past two week. RS weaker than the market in general. In general, I wouldn’t listen to those pumping up tech as a groupl.
Utilities [[XLU]]: Bullish. Breaking out of a double top after period of consolidation. Good support at 40. However, momentum has been positive for four days, but still negative on a two week time frame. Relative strength slightly stronger than the market.
Telecom [[IYZ]]: Neutral. Low pole reversal pattern developing, but consolidating and daily momentum has weakened now, on an eleven day time frame. Weekly momentum turned negative last week.
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Leveraged ETFs:
[[SZK]] broke out of a triple top, as the consumer is getting whacked.
[[SIJ]] is breaking out to the upside, but very thinly traded.
Of note, [[SRS]] has turned south and broken a double bottom, but so has the long double inverse [[URE]]. This tells me that the market for RE has no real direction and traders are confused. Experience has shown that when people are confused, they eventually sell.
Watch [[UYM]], which has potential to breakout of a triple top at 112. Thinly traded, though.
[[SDS]] and [[DXD]] meeting resistance. [[QID]] broke a double top this month, but has stalled out.
NOTE:
NYSE Bullish Percent Index: Currently 46% of stocks on the NYSE are showing a PnF buy signal, down from last weeks bullish 54%. This is a negative reversal of the bullish trend. However, 48% of NYSE stocks are still trading above their 10 week MA, but that number is falling. Keeping an eye on this.
The market looks to be correcting at this point in time, despite appearances by the indices. Be careful about getting caught up in a suckers rally. How long this developing correction could last is still unclear.
I officially turned in my horns and grew claws last week on 06/11/08. Bears will be served ribeye steaks in the near future.
Disclaimer: This information is not intended to be used as the primary basis of investment decisions. Because of individual investors requirements, it should not be construed as advice designed to meet the particular investment needs of any investor. Consult your financial advisor prior to taking any actions. The information and opinions contained here are those of the author and are not necessarily the same as those of iBankCoin, its principals or its affiliates. The author may have a position in one or more stocks mentioned here. Trade at your own risk.
