Sector Analysis 24 June 2012
/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.
iShares DJ US Telecom
ETF Symbol: IYZ
DJ
US Telecom pulled back to the support level at $21.80
last week. Now I'm now looking forward to a bullish move.
iShares DJ US Technology
ETF Symbol: IYW
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.
iShares DJ Transportation Average
ETF Symbol: IYT
DJ Transportation Average is
behaving somewhat erratically - stay on the sidelines.
iShares DJ US Basic Materials
ETF Symbol: IYM
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.
iShares DJ US Consumer Goods
ETF Symbol: IYK
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.
iShares DJ US Industrials
ETF Symbol: IYJ
The
DJ US Industrial chart has no obviously tradeable
patterns; so I recommend staying on the sidelines.
iShares DJ US Healthcare
ETF Symbol: IYH
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.
iShares DJ US Financial
ETF Symbol: IYF
DJ US Financial was slightly bullish last week and I expect more of the same in the coming week.
iShares DJ US Energy
ETF Symbol: IYE
DJ US Energy continued on its downward journey last week. I expect more of the same this coming week.
iShares DJ US Consumer Services
ETF Symbol: IYC
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.
iShares DJ US Utilities
ETF Symbol: IDU
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".
