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Markets Overall

Stock Market Call: Two Weeks Up, Four Weeks Down.

Let’s look at last night’s sector strength chart; the overall average has improved from last week’s 3.10 to last night’s 3.98. The models are still calling the market to remain bearish up to September 2. As you will see, some of the sectors have some bullishness to them for the next two weeks, but all sectors have bearish numbers through the end of August.

Let us start with the strongest sectors first. Energy and Bonds both have an average score of 4.53, Energy sector has strong numbers through the first week of August. Unlike Energy, the Bonds numbers are not as strong, but both sectors fall off through the end of August. Biotechnology scores a 4.48. Biotech is one of a few sectors with strength numbers that return to the bullish territory at the end of the 90 days. The Consumer sector comes in at 4.14.

As you will see, the remaining charts have a similar pattern to the Energy chart, strong through the first couple of weeks of August, then falling off. Next is the U.S. Stock Market at 4.13. And, Technology with a score of 4.12 with a considerable dropoff at the end of August. The Financial sector scores a 3.82. With Health Care following at 3.80. Non-U.S. Stocks, scoring 3.78, barely makes it into the bullish zone next week. Both Emerging Markets and Real Estate score 3.76. Coming in at twelfth is the Commodities sector with a score of 3.70. And finally, we get to the Precious Metals and Miners with an overall average of 3.23.

So, like the past two weeks, the models expect a downside to the markets through August.

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