Trade U.S. Stocks with Unum Capital.
To get started, email lester@unum.co.za
*Note Prepared on Thursday, 13 March (pre-market U.S. trading session).
Key:
Short Term (1-10 days): Highest weight
Medium Term (2-4 weeks): Medium weight
Long Term (5-8 weeks): Lowest weight
Sector Analysis:
1. Materials vs. SPY
Short-Term: Strong (Green)
Medium-Term: Strong (Green)
Long-Term: Weak (Pink)
Overall: Improving. While long-term is weak, the short and medium-term strength indicates a potential turnaround.
2. Communications vs. SPY
Short-Term: Neutral (Yellow)
Medium-Term: High Bullish Momentum/Approaching Overbought (Green)
Long-Term: Overbought (Pink)
Overall: Mixed. The short-term neutrality suggests a pause after a strong medium-term rally. The long-term overbought condition warrants caution.
3. Energy vs. SPY
Short-Term: Strong (Green)
Medium-Term: Strong (Green)
Long-Term: Neutral (Yellow)
Overall: Strong and Stable. Consistent strength across all timeframes.
4. Financials vs. SPY
Short-Term: Weak (Pink)
Medium-Term: Neutral (Yellow)
Long-Term: Strong (Green)
Overall: Deteriorating. Long-term strength is being challenged by recent weakness.
5. Industrials vs. SPY
Short-Term: Strong (Green)
Medium-Term: Strong (Green)
Long-Term: Neutral (Yellow)
Overall: Strong and Improving. Short and medium-term strength is positive.
6. Technology vs. SPY
Short-Term: Neutral (Yellow)
Medium-Term: Weak (Pink)
Long-Term: Weak (Pink)
Overall: Weak and Potentially Stabilizing. Persistent weakness, but short-term neutrality suggests possible consolidation.
7. Consumer Staples vs. SPY
Short-Term: Neutral (Yellow)
Medium-Term: High Bullish Momentum/Approaching Overbought (Green)
Long-Term: Neutral (Yellow)
Overall: Improving with Caution. The medium-term momentum is positive, but the overbought condition needs monitoring.
8. Real Estate vs. SPY
Short-Term: Strong (Green)
Medium-Term: Strong (Green)
Long-Term: Neutral (Yellow)
Overall: Strong and Improving. Consistent strength in recent periods.
9. Utilities vs. SPY
Short-Term: Strong (Green)
Medium-Term: High Bullish Momentum/Approaching Overbought (Green)
Long-Term: Neutral (Yellow)
Overall: Strong with Caution. Similar to Consumer Staples, strong momentum but approaching overbought levels.
10. Healthcare vs. SPY
Short-Term: Strong (Green)
Medium-Term: Strong (Green)
Long-Term: Neutral (Yellow)
Overall: Strong and Improving. Consistent strength across all time frames.
11. Consumer Discretionary vs. SPY
Short-Term: Oversold (Green)
Medium-Term: High Bearish Momentum/Approaching Oversold (Pink)
Long-Term: Neutral (Yellow)
Overall: Weak but Potentially Turning. Oversold conditions in the short-term could indicate a potential bounce, but the medium-term bearish momentum is concerning.
Summary of Key Takeaways:
Strongest Sectors: Energy, Industrials, Real Estate, Utilities, and Healthcare exhibit strong recent performance.
Weakest Sectors: Technology remains weak, while Financials and Consumer Discretionary are showing signs of deterioration.
Sectors to Watch: Communications and Consumer Staples are showing positive momentum but are approaching overbought levels.
Lester Davids
Analyst: Unum Capital
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