Sector Analysis 18 November 2012

Added on by StockMarketStudent.

by Steve Auger

Many of the sectors are looking pretty bearish again this week with the 200 day Simple Moving Average coming into play for many of these ETFs.  As thanksgiving is a major holiday in the USA, I look for a potential turn positive after the holiday, probably at the start of the following week.

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 There is currently a short position being held in DJ US Telecom.  This ETF has continued downward within a descending channel. The price is sitting at the 200 day Simple Moving Average.  If this SMA is breached then look for the bottom to fall out of this. Keep the short position but move the protective stop to $23.50.

Sell ETF (red 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 has breached a major support level and traders should enter short with a protective stop at $68.5.

 

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 at a support level but there is still no clear signal. Remain on the sidelines.

 

Caution (yellow light)

iShares DJ US Basic Materials

ETF Symbol: IYM

iShares DJ US Basic Materials stock chart showing technical analysis

DJ US Basic Materials has fallen below the 200 day SMA.  Enter short with a protective stop at $67.50.

 

Sell ETF (red light)

iShares DJ US Consumer Goods

ETF Symbol: IYK

iShares Dow Jones US Consumer Goods stock chart showing technical analysis

A short trade was entered for DJ US Consumer Goods on a stop.  The 200 day Simple Moving Average was breached and then the ETF price rebounded to sit at the SMA.  Keep the short position but add a protective stop at $73.5.

Sell ETF (red light)

iShares DJ US Industrials

ETF Symbol: IYJ

iShares DJ US Industrial stock chart showing technical analysis Enter a short position for DJ US Industrials as the 200 day SMA was breached.  Place a protective stop at $69.90.

 

Caution (yellow light)

iShares DJ US Healthcare

ETF Symbol: IYH

iShares DJ US Healthcare stock chart showing technical analysis

DJ US Healthcare is hovering around 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 as Williams %R is showing a bearish trend with a support level breached, while the On-Balance Volume is showing bullish divergence. 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 previously initiated and it should be maintained as the price has dropped below the 200 day SMA.  A descending channel has formed and there may be a bounce here up to the $40.50 region.  The protective stop should be adjusted upwards to $40.75 to accommodate the potential short term bounce.

Caution (yellow light)

 iShares DJ US Consumer Services

ETF Symbol: IYC

iShares DJ US Consumer Services stock chart showing technical analysis

DJ US Consumer Services dropped out of the descending channel last week but is just above a major support level.  Stay on the sidelines.

 

Caution (yellow light)

iShares DJ US Utilities

ETF Symbol: IDU

iShares DJ US Utilities stock chart showing technical analysis

DJ US Utilities continued to drop last week.  I prefer to stay on the sidelines again this week as I still believe there will be a bounce after such a large move downwards.

 

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".