Stock and Sector Overview
- Posted by UpsideTrader
- on August 17th, 2013
Interesting week last week. Some sectors continued to unravel and some bounced. Time for a rotation again I guess. Anything that is a REIT continued to unwind. Apartment REIT’s, health care REIT’s, you name it.
$IYR continues to have the glide pattern of an anvil.
$XHB caught a dead cat bounce late in the week, so names like $LEN and $PHM acted well. Two days doesn’t a trend change make, but the ETF did retake its 200 day moving average. Builders should be on your watchlist as longs, it is possible they dried out.
$XLB Materials have been hot as names like $CLF, $WLT and $FCX have rallied from ridiculously oversold levels. The group was strong until Thursday though, as the sector broke a two month uptrend line.
$XLF So are higher rates good for banks or what?? Double edged sword though. They make better vig with higher rates, but the trade off is a possible slowdown in housing demand. We’ll see how this all shakes out, but I still like the banks and they will be buys again soon. The ETF is only a buck off its annual high, so a move down to the blue line (100 day moving average) is certainly possible.
$IBB Ever since this ETF bumped its head at the top of channel it didn’t have a shot. I should have taken my own advice on this and sorted the bejeezus out of it but didn’t. Would have been good for a fast 13 bucks. Now I’ll wait to get long. Names like $BIIB and $CELG have quietly gotten hammered over the last couple of weeks.
$XLK Technology broke its 20 day moving average thanks to $CSCO and general market weakness. $GOOG is really struggling but $AAPL pulled up the rear thanks to Icahn. $AAPL was acting well before Icahn though and I think it has become a place where nervous money goes to hide out.
The market may be due for an oversold rally next week, although I’d like to see $SPX get down around 1630 first. We are running low on catalysts at this point and I see more confusion and uncertainty then clarity ahead so be prepared for chop and volatility. Its also August and moves get embellished. Good luck out there.
I may be back later with some specific set ups, but the pickings are slim right now.
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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Joe was on Wall St, for twenty five years and his career took him to the retail, institutional and capital markets... More »
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