by Steve Auger

The markets experienced a major bounce on a short trading week.  Most of the price charts look quite bearish but I do not recommend shorting everything as this strategy could be quite dangerous at this time of year.  So I am going to take a wait-and-see attitude.  Aggressive traders could initiate shorts at the first signs of downward movement.  The rest of us should stay on the sidelines this week, except for Basic Materials.

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.

Caution (yellow light)

iShares DJ US Telecom

ETF Symbol: IYZ

Stock chart of iShares DJ US Telecom showing technical analysis The short position in DJ US Telecom was stopped out last week.  It looks like the ETF will start falling again but it is best to stay on the sidelines given the time of year.  Look for a new downward move before reestablishing a new short position.

Caution (yellow light)

iShares DJ US Technology

ETF Symbol: IYW

Stock chart of iShares DJ US Technology showing technical analysis DJ US Technology - same commentary as US Telecom (IYZ).

 

 

Caution (yellow light)

iShares DJ Transportation Average

ETF Symbol: IYT

iShares Dow Jones Transportation Average IYT stock chart showing technical analysis DJ Transportation Average bounced off the support level last week but there is still no clear signal. Remain on the sidelines.

 

Sell ETF (red light)

iShares DJ US Basic Materials

ETF Symbol: IYM

iShares DJ US Basic Materials stock chart showing technical analysis

DJ US Basic Materials had a strong week but is now at the 200 day Simple Moving Average and the upper trend line of a descending channel.  Enter a short position with a protective stop at $67.75.

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  - same commentary as US Telecom (IYZ).

 

 

Caution (yellow light)

iShares DJ US Industrials

ETF Symbol: IYJ

iShares DJ US Industrial stock chart showing technical analysis DJ US Industrials  - same commentary as US Telecom (IYZ).

 

Caution (yellow light)

iShares DJ US Healthcare

ETF Symbol: IYH

iShares DJ US Healthcare stock chart showing technical analysis

DJ US Healthcare - Remain on the sidelines.

 

 

Caution (yellow light)

iShares DJ US Financial

ETF Symbol: IYF

iShares DJ US Financial Sector stock chart showing technical analysis

DJ US Financial - Remain on the sidelines.

 

 

Caution (yellow light)

iShares DJ US Energy

ETF Symbol: IYE

iShares DJ Energy stock chart showing technical analysis

DJ US Energy - same commentary as US Telecom (IYZ).

 

 

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  - Remain 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  - Remain on the sidelines.

 

 

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