Sector Analysis 4 June 2012

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by Steve Auger

I am seeing "red" all around.  The markets are looking for QE3 to prop up markets.  This will likely happen in the near future and when it does there will be massive short covering - the markets will "pop".   Keep this in mind - be bearish but be smart.  Don't be overly aggressive or you will get blown out...

ETF Trading System

Caution (yellow light)

iShares DJ US Telecom

ETF Symbol: IYZ

Stock chart of iShares DJ US Telecom showing technical analysis for June 4, 2012 DJ US Telecom fell to a support level.  Remain on the sidelines this week.

 

 

Sell ETF (red light)

iShares DJ US Technology

ETF Symbol: IYW

Stock chart of iShares DJ US Technology showing technical analysis for June 4, 2012 DJ US Technology remains bearish this week.  WilliamsR is signalling a bearish trend.  The price crossed below the 200-day Simple Moving Average last week.

 

 

Sell ETF (red light)

iShares DJ Transportation Average

ETF Symbol: IYT

iShares Dow Jones Transportation Average IYT stock chart showing technical analysis for June 4, 2012 DJ Transportation Average has resumed its downward trend.

 

 

Caution (yellow light)

iShares DJ US Basic Materials

ETF Symbol: IYM

iShares DJ US Basic Materials stock chart showing technical analysis for June 4, 2012

DJ US Basic Materials is at a significant support level.  Look for a possible bounce this week.

 

 

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 4, 2012

DJ US Consumer Goods had a very bad day Friday, crashing through the support level.  This ETF should continue to drop down to the 200 day Simple MOving Average. and support level of $68.60.

 

Sell ETF (red light)

iShares DJ US Industrial

ETF Symbol: IYJ

iShares DJ US Industrial stock chart showing technical analysis for June 4, 2012Look for DJ US Industrial to continue its downward trend. 

 

 

Caution (yellow light)

iShares DJ US Healthcare

ETF Symbol: IYH

iShares DJ US Healthcare stock chart showing technical analysis for June 4, 2012

DJ US Healthcare is near a support level.  This ETF will probably bounce here but not far.  It will likely continue downward but stay on sidelines for now.

 

 

Sell ETF (red light)

iShares DJ US Financial

ETF Symbol: IYF

iShares DJ US Financial Sector stock chart showing technical analysis for June 4, 2012

DJ US Financial broke through local support and is now approaching a new support level.  Trend remains down.

 

 

Sell ETF (red light)

iShares DJ US Energy

ETF Symbol: IYE

iShares DJ Energy stock chart showing technical analysis for June 4, 2012

DJ US Energy is in a long-term bear market.  I have drawn an Andrews Pitchfork on the chart - not one of my favorite indicators, but let's see if the price stays within the pitchfork boundaries.  I expect this ETF to continue down.

 

Caution (yellow light)

 iShares DJ US Consumer Services

ETF Symbol: IYC

iShares DJ US Consumer Services stock chart showing technical analysis for June 4, 2012

DJ US Consumer Services is at a support level.  Aggressive traders should short this ETF at $76.

 

 

Caution (yellow light)

iShares DJ US Utilities

ETF Symbol: IDU

iShares DJ US Utilities stock chart showing technical analysis for June 4, 2012

DJ US Utilities price is bouncing between support and resistance.  Stay on the sidelines.

 

 

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