Sector Selector: Buys Jumping All Over the Place
Thursday, January 19th, 2012As you can imagine, the current stock market rally has pulled many sectors into bullish technical terrain. Unlike previous sector selector reviews, there is not a noticeable trend distinguishing buys. It’s just like popcorn on the hot stove; buys popping up in every direction, including many different sectors and industries.
On the sell-side, especially the emerging list, TEN finds traditional defensive stocks. The sort Wall Street runs to when the trading waters get rough, and algorithms spit out risk off readings.
For our readers searching for the biggest reward, and who aren’t worried about the distaste of risk, Top Equity would suggest focusing on the emerging buy/sell lists. That’s where the biggest winners are likely to be uncovered.
More conservative types should pay attention to the mature members. While they probably offer less upside, they do have more, well-established support behind them.
EMERGING BUY: industries with positive technical analysis traits that are in the early stages, indicating possible above average returns in the near-term:
Autos Auto Parts Business Training
Banks Basic materials Commercial Vehicles
Chemicals Containers & Packaging Defense
Electric Components Industrial Metals Electronic Equipment
Healthcare Non-Ferrous Metals Real Estate
Small-Cap Steel General Industries
Furnishings Commercial Vehicles Durable Household Goods
MATURE BUY: industries that have outperformed and their charts suggest the above average returns could continue:
Aerospace Delivery Services Media
Broadcasting Biotech Construction & Materials
Industrial Machinery Industrials Industrial Engineering
Hotels Paper Forestry & Paper
Home Construction Diversified Industries
MATURE SELL: industries that have under-performed and based on their current chart patterns and could continue to lag:
Beverages Personal Products Specialty Construction
Computer Services Food & Beverage Fixed Telecom
Business Support Leisure Goods Waste Disposal
Soft Drinks Food Products Toys
EMERGING SELL: industries that have fresh negative technical analysis set ups and could have subpar performance in the weeks ahead:
Consumer Services Electricity Property & Casualty
Reinsurance Multi-Utilities Consumer Goods
Gold Mining Large-Cap Growth Personal Household Goods
Gas Distribution Software Non-Durable Household Goods
Tobacco Utilities Gas & Water
