Markets Overall Uncategorized

All Sectors Indicate The Sell-Off To Continue.

There was a heck of a sell-off this week. I hope you didn’t get caught in the sucker’s rally on Friday morning. I sort of did; I picked up three inverse ETFs early in the week and set up some 5% trailing stops on them; Friday morning, the stops were executed for a gain, but by Friday afternoon, I would have been better off if the sales didn’t execute.

Based on the models, the sell-off will continue through October. The overall 30-day score, the average of all the sectors, remains unchanged. This week’s average fell dramatically to 3.46 from last week’s 4.07. So the models are very bearish.

No sectors are showing an average in the bullish zone. The bullish zone is above 4.5.

The Energy sector’s average, which had been strong for the previous three weeks, took a big step down to a score of 3.69.

The Biotech sector is the only sector showing green on a daily basis, but even its 30-day score is bearish at 4.30. The models predict some good numbers start in October.

The sector with the worst score is Technology. With an average of 2.66, I don’t expect much good news coming out of that sector for the next six weeks.

And watch out for some bad numbers this coming week in Commodities and the U.S. Stock Market.

Markets Overall

Stock Market Models Get More Bearish

The overall 30-day score, which is the average of all the sectors, has fallen. This week’s average is 4.07, down from last week’s average of 4.22. So the models are still bearish.

For the second week in a row, the Energy sector is in the number one spot with the most bullish number. Energy’s 30-day average score is 5.33, up from 5.12. Look for a peak during the first week of September. The Commodities sector comes in second with an average score of 4.57, slightly above the neutral number of 4.5. The models have Commodities with some strength during the second and third week of September.

The three sectors at the bottom of the list are the US Stock Market with a score of 3.81, the Technology sector scoring 3.78, and Emerging Markets with a score of 3.68.

So, like the past six weeks, the models are bearish, except for Energy.