Sector Analysis 24 June 2012

Added on by StockMarketStudent.

by Steve Auger

This last week we saw some separation of price action among the Dow Jones (DJ) ETF sectors.  i.e. they were not following the general market trend.  Some sectors are starting to present some pretty bullish charts and I believe the Europe crisis will be ignored for the next few weeks.  If this year follows the typical seasonal pattern then we should be good until the end of July - then the next phase of the bear market will likely kick into high gear.

ETF Trading System
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.

Buy ETF (green light)

iShares DJ US Telecom

ETF Symbol: IYZ

Stock chart of iShares DJ US Telecom showing technical
analysis for June 24, 2012 DJ US Telecom pulled back to the support level at $21.80 last week.  Now I'm now looking forward to a bullish move. 

 

 

Buy ETF (green light)

iShares DJ US Technology

ETF Symbol: IYW

Stock chart of iShares DJ US Technology showing technical
analysis for June 24, 2012 DJ US Technology broke out from the descending channel last week and should see further bullish action this week.  The IYW price chart is building on successive higher lows, and WIlliams%R is showing a trend.

 

 

Caution (yellow light)

iShares DJ Transportation Average

ETF Symbol: IYT

iShares Dow Jones Transportation Average IYT stock chart
showing technical analysis for June 24, 2012 DJ Transportation Average is behaving somewhat erratically - stay on the sidelines.

 

 

Caution (yellow light)

iShares DJ US Basic Materials

ETF Symbol: IYM

iShares DJ US Basic Materials stock chart showing
technical analysis for June 24, 2012

DJ US Basic Materials is trading within an ascending channel at the lower trend line.  Aggressive traders should short upon a breakdown i.e. breech of the lower trendline.

 

 

Sell ETF (red light)

iShares DJ US Consumer Goods

ETF Symbol: IYK

iShares Dow Jones US Consumer Goods stock chart showing
technical analysis for June 24, 2012

DJ US Consumer Goods has hit a support level on the down side.  The price could bounce around between support and resistance here but I expect further downside action based on the Williams%R and On-Balance Volume divergence.


Caution (yellow light)

iShares DJ US Industrials

ETF Symbol: IYJ

iShares DJ US Industrial stock chart showing technical
analysis for June 24, 2012The DJ US Industrial chart has no obviously tradeable patterns;  so I recommend staying on the sidelines.

 

 

Caution (yellow light)

iShares DJ US Healthcare

ETF Symbol: IYH

iShares DJ US Healthcare stock chart showing technical
analysis for June 24, 2012

DJ US Healthcare should be entered long on a breakout above $78.5.  Williams%R is showing trend and the OBV looks bullish.  The only thing holding this ETF back right now is the resistance level.

 

 

Buy ETF (green light)

iShares DJ US Financial

ETF Symbol: IYF

iShares DJ US Financial Sector stock chart showing
technical analysis for June 24, 2012

DJ US Financial was slightly bullish last week and I expect more of the same in the coming week.

 

 

Sell ETF (red light)

iShares DJ US Energy

ETF Symbol: IYE

iShares DJ Energy stock chart showing technical analysis
for June 24, 2012

DJ US Energy continued on its downward journey last week.  I expect more of the same this coming week.

 

Buy ETF (green light)

 iShares DJ US Consumer Services

ETF Symbol: IYC

iShares DJ US Consumer Services stock chart showing
technical analysis for June 24, 2012

DJ US Consumer Services was slightly bullish last week.  I believe that this ETF will continue to climb, hugging the trend line shown on the chart.

 

 

Buy ETF (green light)

iShares DJ US Utilities

ETF Symbol: IDU

iShares DJ US Utilities stock chart showing technical
analysis for June 24, 2012

DJ US Utilities should see some bullish action this week after the surge/pullback last week.

 

 

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