EC Sector Watch: Keeping To A Bullish Narrative

Sectors bullish as a whole, but still with some notable laggards.

Financials suck, I've played them sporadically throughout the year, and every time, the gains have been meager. I have been incredibly skeptical of Energy, though I have played them with much more success, I have stood by on its current rally because the sector itself has been so sketchy for much of this year, and while it is breaking out of consolidation, I would be careful of buying here as it is quite oversold and needs to, at the very least, flag for a bit. 

The best play right now looks to be Industrials from a risk/reward standpoint. I booked some profits yesterday in Jacobs Engineering (JEC) for a +3.8% profit yesterday, but I think there is a solid bounce playing out today off key support, and should it follow through tomorrow, could make for some ideal trade setups in the sector as a result. 

Here's what I see as the top 3 sectors right now:

  1. Healthcare
  2. Technology
  3. Energy

The 3 worst sectors are:

  1. Utilities
  2. Materials
  3. Financials 

Let's review the sectors:

Basic Materials (XLB)

(Click on image to enlarge)

xlb 2

Energy (XLE)

(Click on image to enlarge)

xle 2

Financials (XLF

(Click on image to enlarge)

xlf 2

Industrials (XLI)

(Click on image to enlarge)

xli 2

Technology (XLK)

(Click on image to enlarge)

xlk 2

Consumer Staples (XLP)

(Click on image to enlarge)

xlp 2

Utilities (XLU)

(Click on image to enlarge)

xlu 2

Health Care (XLV)

(Click on image to enlarge)

xlv 2

Consumer Disretionary (XLY)

(Click on image to enlarge)

xly 2

Click here to download my Allocation Spreadsheet.

Get all ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.
Moon Kil Woong 3 years ago Contributor's comment

The market seems more in a stable and slightly rising environment more due to the fact of increased flows to it than anything else. Tech has been bullish but sectors are weakening, semiconductors especially. Be careful with "tech" because the tech they talk about is liable to be different than before with big names moving into other sector descriptions. Make sure you aren't losing out by not offsetting your portfolio to buy what the indexes you may be in get rid of.

Today one must be much more careful, especially if you buy Indexes and funds. They change over time but with their holdings, their management, their performance, and their costs.

Kurt Benson 3 years ago Member's comment

Excellent article, no BS just objective analysis, of which I agree. Great work!

Alpha Stockman 3 years ago Member's comment

Doesn't sound very bullish!

Asdf 3 years ago Member's comment

Sounds to me like the author is saying that it's not a bullish market, despite what some others are claiming. But he gives some optimistic tips where money can still be made like with $JEC and various sectors.