by Steve Auger

The election caused a great deal of turmoil last week.  Most sectors dropped fairly significantly, in particular utilities and technology.  I strongly believe there will be some relief this week, a short term bounce as some of the sectors are at major support levels. 

The following is this week's ETF sector analysis of the DJ symbols IYZ, IYW, IYT, IYM, IYK, IYJ, IYH, IYF, IYE, IYC and IDU.

Sell ETF (red light)

iShares DJ US Telecom

ETF Symbol: IYZ

Stock chart of iShares DJ US Telecom showing technical analysis Last week a short position was entered in DJ US Telecom.  This ETF has continued downward.  Keep the short position but move the protective stop to $24.20.

 

 

Caution (yellow light)

iShares DJ US Technology

ETF Symbol: IYW

Stock chart of iShares DJ US Technology showing technical analysis DJ US Technology continues to trade in the descending channel.  The ETF is now at a major support level and will likely bounce here.  But if this ETF drops below the support then it could end up in a free fall.  I'm not expecting this (yet) but be prepared to jump on the short side.

 

Caution (yellow light)

iShares DJ Transportation Average

ETF Symbol: IYT

iShares Dow Jones Transportation Average IYT stock chart showing technical analysis DJ Transportation Average is still going nowhere fast. Remain on the sidelines until there is a clear signal.

 

Caution (yellow light)

iShares DJ US Basic Materials

ETF Symbol: IYM

iShares DJ US Basic Materials stock chart showing technical analysis

I still don't like the chart for DJ US Basic Materials.  Stay on the sidelines until there is a clearer signal.

 

Caution (yellow light)

iShares DJ US Consumer Goods

ETF Symbol: IYK

iShares Dow Jones US Consumer Goods stock chart showing technical analysis

DJ US Consumer Goods is trading within a descending channel, at the lower trend line.  The price is also at the 200 day Simple Moving Average. If the ETF drops below the SMA then it will drop fast. Enter a new short position on a sell stop at $72.40.

 

Caution (yellow light)

iShares DJ US Industrials

ETF Symbol: IYJ

iShares DJ US Industrial stock chart showing technical analysis Exit the DJ US Industrials short trade and stay on the sidelines here.

 

Caution (yellow light)

iShares DJ US Healthcare

ETF Symbol: IYH

iShares DJ US Healthcare stock chart showing technical analysis

DJ US Healthcare is approaching a support level.  Stay on the sidelines this week.

 

 

Caution (yellow light)

iShares DJ US Financial

ETF Symbol: IYF

iShares DJ US Financial Sector stock chart showing technical analysis

DJ US Financial ETF has conflicting signals. Stay on the sidelines this week.

 

 

Sell ETF (red light)

iShares DJ US Energy

ETF Symbol: IYE

iShares DJ Energy stock chart showing technical analysis

A short position in DJ US Energy was initiated last week on a sell stop.  The price has dropped below the 200 day SMA, considered very bearish.  Maintain the short position with a protective stop at $40.50.

Caution (yellow light)

 iShares DJ US Consumer Services

ETF Symbol: IYC

iShares DJ US Consumer Services stock chart showing technical analysis

Exit the short position in DJ US Consumer Services as the ETF will likely trade higher within the descending channel this week.  Even if IYC breaches the lower trend line of the descending channel it won't likely drop too far.

 

Caution (yellow light)

iShares DJ US Utilities

ETF Symbol: IDU

iShares DJ US Utilities stock chart showing technical analysis

All I can say is WOW!  Lots has been made on this short trade on DJ US Utilities.  It's time to exit the trade and take profits as the ETF is now at a major support level. 

 

 

Sector Inspector's Sign Language

Sell ETF (red light)

- Sell short,continue to hold a short position or close long position

Caution (yellow light)

- Do not initiate a new position

Buy ETF (green light)

- Go long, continue to hold a long position

Technical Analysis Terminology

resistance level support level  trend line  descending triangle   symmetrical triangle  ascending channel  Williams%R

Disclosure:  The author "Walks the walk" in addition to "Talking the Talk".

Posted
AuthorStockMarketStudent