Reviewing the sector charts – there is plenty to like, from a bullish perspective. 

Pretty much every sector I looked at, I could find myself a reason for why there could be a bullish take on it. So overall, the charts aren’t all that bad. What I am  concerned with more than anything else, is the breadth among stocks we are seeing when the market is rallying. Right now, the top sectors remain Tech and Healthcare, while Discretionary has been apathetic to anything the market is doing as a whole. New to the top three though, is the financials, which have been rallying hard since earnings season began. 

Here’s what I see as the top 3 sectors right now:

  1. Technology
  2. Healthcare
  3. Financials

The 3 worst sectors are:

  1. Materials
  2. Industrials
  3. Energy

You’ll definitely want to stay away from the financials as they start reporting tomorrow, and there’s no need for trapping yourself in a bad trade .

Let’s review the sectors:

Basic Materials (XLB)

xlb 2

Energy (XLE)

xle 2

Financials (XLF) 

xlf 2

Industrials (XLI)

xli 2

Technology (XLK)

xlk 2

Consumer Staples (XLP)

xlp 2

Utilities (XLU)

xlu 2

Health Care (XLV)

xlv 2

Consumer Disretionary (XLY)

xly 2