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Markets Overall

Most Sectors Are Bullish By Mid June But…

Let’s look at last night’s sector strength chart based on the corresponding ETF averages; this week’s overall average is still bearish with a value of 4.38, which is better than last week’s 4.00.

This week, four of the thirteen sectors tracked are in the bullish zone; there were only two bullish sectors last week. The bullish sectors are Energy, Commodities, Financials, and Foreign Stock Markets. The bearish sectors are Real Estate, Emerging Markets, Bonds, Health Care, US Stocks, Tech, Metals & Miners, Consumer, and Biotech.

Looking at the individual charts; Energy comes in with an average score of 6.2, with most of its strength at the end of this month. The Commodities sector scores 5.16 and peaks twice; once next week and the second time after the fourth of July. The Financial sector is third with a score of 4.97 but falls off quickly starting in July. And the last bullish sector is the International Stock Market scoring a weak bullish number of 4.67.

Starting with the bearish sectors first is Real Estate with a score of 4.46; it was a bullish sector last week. Then follows Emerging Markets, averaging at 4.36. The third bearish sector is Bond Sector, with a score of 4.10. Following Bonds is the Health Care Sector also with a score of 4.10. Fifth in the bearish group is US Stock Market, with an average 30-day score of 4.00. US Stocks are closely the Technology sector with a score of 3.86. Tech is followed by the Precious Metals and Miners sector, scoring 3.84. The eighth sector is the Consumer sector, with a score of 3.72. And finally, the last sector is Biotechnology at 3.54.

So nine out of the thirteen sectors, the models’ track are bearish, and the remaining four are bullish.