Sector Watch: What's Coming In Hot

Most of the sectors are showing sideways trading patterns. 

The market isn't entirely untradeable but it is getting pretty darn close to it. I'm finding the breakout plays to be more difficult than most, and instead focusing on the stocks that are forming a base and coming out of that base, following a sell-off. Most recent profitable trades include Facebook (FB) and Netflix (NFLX). Then again, you have today's trade in Weight Watchers (WTW) that did absolutely nothing but ultimately stop me out for a loss. There is a decent chance that tomorrow I get in one of both of them, as they are sporting some bull flag trading patterns in the short term. Technology is still a strong sector, just not as the three ahead of it. 

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

  1. Healthcare
  2. Discretionary
  3. Financials

The 3 worse sectors are:

  1. Energy
  2. Materials
  3. Staples

Staples actually aren't all that bad, they are pulling back during a time when the market is rallying, but the pullback as a whole, has actually been quite healthy. Energy though - absolutely no edge trading that sector right now. 

Let's review the sectors:

Basic Materials (XLB)

xlb 1

Energy (XLE)

xle 1

Financials (XLF

xlf 1

Industrials (XLI)

xli 1

Technology (XLK)

xlk 1

Consumer Staples (XLP)

xlp 1

Utilities (XLU)

xlu 1

Health Care (XLV)

xlv 1

Consumer Discretionary (XLY)

xly 1

Click here to download my Allocation Spreadsheet.

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