We are in the first week of the year and the stockmarket is trying to build momentum, like in November, but is not close to break out of the current consolidation. There seems to be a flow back in to the Mag 7. Bond yields pushed higher lately. The dollar and gold moved in tandem together. When they move up the stockmarket retraces. When dollar and gold goes down the stockmarket goes up. The large movers in the stockmarket continues to show up in the small common stocks. They are highly risky but the appeal for gambling seems to be there.
The Sectors:
The Technology Sector continues to be the strongest sector right now but was challenged a bit by the market before and during Christmas. Now it seems to be trying to fully recover. Consumer Cyclical Sector and Financial Services Sector takes second place this weekly update. Energy Sector is improving and now only lacks the Weekly positive signal. Industrials Sector dropped in December but seems to have reached the bottom for this correction. Now positive longterm but working on the Weekly. Utilities Sector also corrected in December and is now in a no mans land. Direction unclear but longer timeframes support.
The worst performing sectors are Healthcare Sector, Communication Services, Real Estate, Consumer Defensive and Basic Materials Sector. They are negative Daily and Weekly.
The coming week we have jobs data and interesting economic report from Delta Airlines. Lower fuelprices, cancelled flights due to winter weather and analyst upgrades are factors in the mix.
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