Thursday, November 22, 2012

Sector & Group Mid Week Update - 11/22/12



The markets have enjoyed gains now for 4 consecutive days, perhaps suggesting a follow through day could be coming up. With that possibility in mind here’s a quick mid week update on industry group performance Mon – Wed of this week. The observations below apply to the trailing 3 trading days only.

Defensive groups waned with only 2 groups in the top 50, and 10 in the bottom 50. 26 of 33 defensive groups finished in the bottom half in price performance Mon – Wed.

Commodity oriented groups rebounded, with 13 groups in the top 50 for the 3 day period, and only 3 in the bottom 50. Energy groups helped to drive this performance, of the energy related groups 4 were in the top 50, 9 of 13 finished in the top half, and only one group was in the bottom 50. Of particular interest to readers could be the Oil&Gas-U S Expl&Prod and Oil&Gas-Field Services groups. These groups are ranked #100 and #150 in the MarketSmith industry group rankings but finished in the top 50 for price performance over the trailing 3 days. Both groups should offer opportunities in the event of a follow through day.

The performance of technology oriented groups was below average, 6 were in the top 50 while 10 were in the bottom 50 over the trailing 3 days.

This blog has mentioned the strength in Auto related groups for several weeks and that's more and more looking like a solid trend. Auto groups finished Wednesday with 3 of 5 groups in the top 50 for price performance and all 5 groups in the top half.

Housing related groups enjoyed strong performance with 6 of 9 groups in the top 50, and the other 3 groups ranked between #50 and #62.

Banks were very weak, the best group finished #95, all other groups finished in the bottom half.

Chemical related industry groups performed well with all 3 groups finishing in the top 58 overall over the trailing 3 days.

Finance related groups finished with 4 of 9 in the top 50 over the trailing 3 days. The Finance-Mrtg&Rel Svc group bounced back with 3.8% gain ranking #22 for the trailing 3 days. Of particular interest is the Finance-Consumer Loans group. This group has a MarketSmith industry group rank  of  #147, but ranks in the top 50 of all groups in price performance over the trailing 1, 2, 3, and 5 week price performance lists. MarketSmith subscribers should review the stocks in this group.

Machinery related groups were strong with 4 of 6 groups finishing in the top 50 overall, and the 2 remaining groups in the top half.

Utilities continued their weak performance, 3 of 4 groups finished in the bottom 50, 4 of 4 in the bottom half, and the Utility-Electric Power group actually lost 0.4%.

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