recent sector strength:
weakest: currently still below 40 week moving average:
energy, gold, silver
weak: below 10Wma:
materials/miners
strong: below September highs:
SOX, small caps ($RUT), consumer discretionary, drugs
strongest: new all-time highs (since the October lows):
S&P500, consumer staples, utilities, biotech, health care, industrials, tech (XLK), financials, transportation ($TRAN), airlines (XAL)
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At the October lows, all sectors were below their 200dma (except consumer staples, biotech).
SOX went from 660 to 545 (-17%) to 650 (+19%).
Airlines have been very volatile: 89 to 72 (-19%) to 94 (+31%). They will do very well, as long as low interest rates and low fuel costs continue.
Energy (XLE) went from 101 to 78 (-23%) to 88 (+13%). A lot of the smaller-cap or leveraged companies are still 30% or more below their highs. They all peaked well before the market did.
Since early 2014, the c. discretionary/staples, and small/large cap ratios have been falling, indicating a move to risk aversion. The recent new market highs did not reverse this trend.
Biotech has been stronger, and safer, than the large-cap dividend-paying drug companies. |
