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*Data as of Thursday, 06 March (intraday, 12h45).
Sector-by-Sector Breakdown:
1. Technology vs. Top 40:
Short Term: Neutral
Medium Term: Strong
Long Term: Strong
Overall: Strong. Despite a neutral short term, the consistent strong performance in medium and long terms suggests continued positive momentum. The short term neutrality could be a temporary pause.
2. Miners vs. Top 40:
Short Term: Weak
Medium Term: High Bearish Momentum/Approaching Oversold
Long Term: High Bearish Momentum/Approaching Oversold
Overall: Weak with potential for reversal. The persistent bearish momentum across all timeframes is concerning. However, the "Approaching Oversold" condition in medium and long terms hints at a possible rebound if momentum shifts.
3. Banks vs. Top 40:
Short Term: Neutral
Medium Term: Weak
Long Term: Neutral
Overall: Weakening. The neutral short term doesn't offset the weakness in the medium term. This sector is showing signs of deterioration and needs close monitoring.
4. Insurers vs. Top 40:
Short Term: Weak
Medium Term: Neutral
Long Term: Neutral
Overall: Weakening. The weak short term is a red flag. The neutral medium and long terms don't provide enough support to counter the immediate weakness.
5. Gold Miners vs. Top 40:
Short Term: Strong
Medium Term: Strong
Long Term: Strong
Overall: Strong. Consistent strength across all timeframes. This sector is a clear outperformer.
6. Platinum Miners vs. Top 40:Short Term: Neutral
Medium Term: Neutral
Long Term: Neutral
Overall: Neutral. This sector is stable but lacks clear direction. It's neither improving nor deteriorating significantly.
7. Consumer Staples vs. Top 40:
Short Term: Weak
Medium Term: Weak
Long Term: High Bearish Momentum/Approaching Oversold
Overall: Weak with potential for reversal. Similar to Miners, this sector is weak but showing signs of potentially being oversold in the long term.
8. Consumer Disc. vs. Top 40:
Short Term: Neutral
Medium Term: Oversold/High Bearish Momentum/Approaching Oversold
Long Term: Neutral
Overall: Weak with potential for short-term bounce. The oversold condition in the medium term suggests a possible short-term recovery, but the overall trend is still weak.
9. Healthcare vs. Top 40:
Short Term: Oversold
Medium Term: Oversold
Long Term: Weak
Overall: Weak with potential for short-term bounce. Heavily oversold in the short and medium terms. A bounce is possible, but the long-term weakness is a concern.
10. Hospitals vs. Top 40:
Short Term: Weak
Medium Term: Weak
Long Term: High Bearish Momentum/Approaching Oversold
Overall: Weak with potential for long-term reversal. Similar to Consumer Staples, the long term shows potential for a rebound.
11. Coal Miners vs. Top 40:
Short Term: Neutral
Medium Term: Weak
Long Term: Weak
Overall: Weakening. The neutral short term doesn't offset the persistent weakness in the medium and long terms.
12. Telecoms vs. Top 40:
Short Term: Weak
Medium Term: Neutral
Long Term: Neutral
Overall: Weakening. The weak short term is the primary concern, with the neutral medium and long terms offering little support.
13. Paper & Pulp vs. Top 40:
Short Term: Neutral
Medium Term: Neutral
Long Term: High Bearish Momentum/Approaching Oversold
Overall: Potentially Bottoming. The oversold condition in the long term suggests a possible turnaround, but the short and medium terms are still neutral.
14. Chemicals vs. Top 40:
Short Term: Neutral
Medium Term: Neutral
Long Term: Oversold
Overall: Potentially Bottoming. Similar to Paper & Pulp, the oversold long term hints at a possible recovery, but the short and medium terms are neutral.
15. Luxury Goods vs. Top 40:
Short Term: Weak
Medium Term: Neutral
Long Term: Strong
Overall: Mixed. The strong long term is a positive, but the weak short term and neutral medium term create uncertainty.
Key Takeaways:
Strong Sectors: Technology and Gold Miners are showing consistent strength across all timeframes.
Weak Sectors with Potential Reversal: Miners, Consumer Staples, Healthcare, Hospitals, Paper & Pulp, and Chemicals are showing signs of being oversold, indicating potential for a bounce or reversal.
Weakening Sectors: Banks, Insurers, Coal Miners, and Telecoms are showing signs of deterioration, especially in the short term.
Neutral Sectors: Platinum Miners and Consumer Discretionary are currently neutral, lacking a clear trend.
Lester Davids
Analyst: Unum Capital
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