by Steve Auger

Sector Analysis Summary

Most of the sector ETFs traded sideways last week.  The energy ETF (IYE) dropped fairly significantly (against my green light) and my protective stop was triggered.  I am giving the remaining sectors (other than energy) the same Red / Yellow / Green status as last week.

ETF Trading System

Cation (yellow light)

iShares DJ US Telecom

ETF Symbol: IYZ

Stock chart of iShares DJ US Telecom showing technical analysis for March 25, 2012  DJ US Telecom dropped in price last week but is trading in the middle of an ascending wedge.  IYZ will likely retreat to the lower trend line on the chart $22.30.  Longer term this ETF will probably follow the general market.  An Ascending Wedge can be very bearish if the price falls below the lower line. I suggest sitting on the sidelines until a clearer pattern is established.

Cation (yellow light)

iShares DJ US Technology

ETF Symbol: IYW

Stock chart of iShares DJ US Technology showing technical analysis for March 25, 2012 DJ US Technology traded sideways last week.  I expect the price will reach the ascending channel lower trend line in the near future, approximately $76.  IYW will be a good buying opportunity at that level with protective stop near the support level shown on the chart.

Sell ETF (red light)

iShares DJ Transportation Average

ETF Symbol: IYT

iShares Dow Jones Transportation Average IYT stock chart showing technical analysis for March 25, 2012

DJ Transportation Average retreated last week and although IYT is at a local support level I have to keep the red light signal on given the On-Balance Volume divergence and likely continuation downward of the Williams%R.

 

Sell ETF (red light)

iShares DJ US Basic Materials

ETF Symbol: IYM

iShares DJ US Basic Materials stock chart showing technical analysis for March 25, 2012

DJ US Basic Materials dropped last week but is still trading within a Descending Channel.  I'm getting mixed signals here as the OBV is showing bullish divergence but Williams%R didn't make it to the -20 level before starting to drop.  Given that the pivot points are showing lower highs and lower lows, I still believe that IYM is still bearish.  If the ETF does break out from here then it will experience resistance levels at $73 and $74.

Buy ETF (green light)

iShares DJ US Consumer Goods

ETF Symbol: IYK

iShares Dow Jones US Consumer Goods stock chart showing technical analysis for March 25, 2012

DJ US Consumer Goods traded sideways last week but is still trading within an ascending channel.  The status of this ETF remains green light with a protective stop below the support level shown on the chart.



Cation (yellow light)

iShares DJ US Industrial

ETF Symbol: IYJ

iShares DJ US Industrial stock chart showing technical analysis for March 25, 2012

DJ US Industrial fell back last week and came close to touching the lower trend line of the Ascending Channel.  IYJ is sitting a a support level.  Wait for a bullish move on strong volume before entering a long position.  The OBV is still showing strong negative divergence.

 

Buy ETF (green light)

iShares DJ US Healthcare

ETF Symbol: IYH

iShares DJ US Healthcare stock chart showing technical analysis for March 25, 2012

DJ US Healthcare pulled back to a support level last week and appears to be initiating a move up, following the trend line shown on the chart. 

 

 

Cation (yellow light)

iShares DJ US Financial

ETF Symbol: IYF

iShares DJ US Financial Sector stock chart showing technical analysis for March 25, 2012

DJ US Financial traded sideways last week.  Wait until IYF retreats to the trend line shown on the chart before entering a position.  The On Balance Volume is still exhibiting bearish divergence.  OBV should be watched carefully.



Cation (yellow light)

iShares DJ US Energy

ETF Symbol: IYE

iShares DJ Energy stock chart showing technical analysis for March 25, 2012

DJ US Energy fell out of the ascending triangle from last week and triggered my stop loss (so I no longer hold a position).  IYE has now formed a descending triangle with lower highs and lower lows.  I suggest staying on the sidelines here as the next move is difficult to call.

 

Buy ETF (green light)

 iShares DJ US Consumer Services

ETF Symbol: IYC

iShares DJ US Consumer Services stock chart showing technical analysis for March 25, 2012

DJ US Consumer Services, like IYK Consumer Goods, managed to stay within its ascending channel and support level.  The status of this ETF remains green light with a protective stop below the lower trend line.

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Cation (yellow light)

iShares DJ US Utilities

ETF Symbol: IDU

iShares DJ US Utilities stock chart showing technical analysis for March 25, 2012

DJ US Utilities has formed an ascending triangle.  Agressive traders could go long here but the OBV bearish divergence suggests it is better for conservative traders to stay on the sidelines.



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

Posted
AuthorStockMarketStudent