Trade U.S. Stocks with Unum Capital.
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*Note Prepared on Thursday, 20 March (into the close of the U.S. trading session).
Strengthening sectors, exhibiting improvement across all timeframes, include Financials and Industrials. Deteriorating sectors, showing consistent weakness, are Materials and Technology. The remaining sectors exhibit a mix of trends: Communications are overbought long-term but strong medium-term; Energy and Utilities show strong bullish momentum short and medium-term but are neutral long-term; Consumer Staples and Healthcare are neutral long and short-term but strong medium-term; Real Estate is neutral long and short-term but strong medium-term; and Consumer Discretionary shows bearish momentum across all timeframes, approaching oversold conditions.
Understanding the Legend:
Red (Top): Overbought - Indicates a potential sell/reduce range. Prices may be too high and due for a correction.
Yellow: High Bullish Momentum/Approaching Overbought - Strong upward trend, but nearing overbought territory, suggesting potential caution.
Blue: Strong - Solid upward trend.
Neutral: No clear trend, or a balance of opposing forces.
Pink: Weak - Downward trend.
Green (Bottom): Oversold - Indicates a potential buy/add range. Prices may be too low and due for a rebound.
Dark Green: High Bearish Momentum/Approaching Oversold - Strong downward trend, but nearing oversold territory, suggesting potential buying opportunity.
Sector Analysis:
1. Materials vs. SPY:
Short-term: Neutral
Medium-term: Strong
Long-term: Weak
Overall: Mixed signals. Short-term neutrality and medium-term strength are countered by long-term weakness.
2. Communications vs. SPY:
Short-term: Weak
Medium-term: Strong
Long-term: Overbought
Overall: Conflicting signals. Short-term weakness and long-term overbought suggest potential sell/reduce. Medium-term strength is a counterpoint, but the weight of short and long term is concerning.
3. Energy vs. SPY:
Short-term: Overbought
Medium-term: High Bullish Momentum/Approaching Overbought
Long-term: Neutral
Overall: Strong bullish momentum, but nearing overbought territory in both short and medium terms. Potential sell/reduce in the short-term, but monitor closely.
4. Financials vs. SPY:
Short-term: High Bullish Momentum/Approaching Overbought
Medium-term: Strong
Long-term: Strong
Overall: Consistently strong across all timeframes. Short-term approaching overbought suggests taking some profits, but the overall trend is very positive.
5. Industrials vs. SPY:
Short-term: Strong
Medium-term: Strong
Long-term: Neutral
Overall: Strong short and medium-term trends suggest continued strength. Long-term neutrality suggests monitoring for potential changes.
6. Technology vs. SPY:
Short-term: Neutral
Medium-term: Weak
Long-term: Weak
Overall: Weak across all timeframes. Short-term neutrality is the only positive, but the overall trend is concerning.
7. Consumer Staples vs. SPY:
Short-term: Weak
Medium-term: Strong
Long-term: Neutral
Overall: Conflicting signals. Short-term weakness is concerning, but medium-term strength is positive. Long-term neutrality suggests monitoring.
8. Real Estate vs. SPY:
Short-term: Neutral
Medium-term: Strong
Long-term: Neutral
Overall: Strong medium-term trend is positive. Short and long-term neutrality suggests monitoring for potential changes.
9. Utilities vs. SPY:
Short-term: Strong
Medium-term: High Bullish Momentum/Approaching Overbought
Long-term: Neutral
Overall: Strong short-term trend and approaching overbought in the medium-term suggest caution. Long-term neutrality suggests monitoring.
10. Healthcare vs. SPY:
Short-term: Neutral
Medium-term: Strong
Long-term: Neutral
Overall: Strong medium-term trend is positive. Short and long-term neutrality suggests monitoring for potential changes.
11. Consumer Discretionary vs. SPY:
Short-term: High Bearish Momentum/Approaching Oversold
Medium-term: High Bearish Momentum/Approaching Oversold
Long-term: Neutral
Overall: Strong bearish momentum, but approaching oversold territory in both short and medium terms. This suggests a potential buy/add opportunity for those looking for a rebound. However, monitor for confirmation of a trend reversal.
Lester Davids
Analyst: Unum Capital
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