The Sectors: Published: 28 Dec 2024
The Sectors continued down into the red territories with the most notable changes in Communication Services Sector and Consumer Defensives. They are now negative in the Weekly also. This slow deterioration in the markets is little discussed and noted by financial media. Instead the focus seems to be elsewhere. Because when we look at the indexes for S&P500 and Nasdaq we see a continued bullmarket. They are weighted towards the Technology Sector which is still holding up pretty well.
Underneath the surface we have other parts of the markets that are making less progress. The Healthcare Sector, Basic Materials Sector, Real Estate Sector and Energy Sector are in negative Weekly. Industrials Sector and Utilities Sector are nearing the negative Weekly. The markets have been falling for 12-15 days straight down but recovered the last few days.
The best performing Sectors right now are Financial Services, Technology and the Consumer Cyclical Sector, although they have also fallen the last two weeks. This is where we look to find trades. The common Mag 7 stocks seems to have reached levels of exhaustion and traders are looking to the smaller companies or specialized technology companies like the Quantum computing business or AI.
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