A lot of trend-lines breaks and topping patterns are forming
The safe sectors is where big money is putting its capital. Utilities are practically on the brink of new all-time highs. I’d also like to add stocks supporting the military or have big dollars in the Pentagon defense budget are also holding up well and attracting a lot of interest too. Just take a look at Northrop Grumman (NOC), Lockheed Martin (LMT) and L3Harris (LHX) for examples.
I still have Technology listed in the top three, but that is more because of its trend-line off of the December lows has held up so well, though it is currently being tested and could see a break any day now. But for now, the chart, despite a heavy pullback in August, still is better than most of the charts out there, with a clear set of higher-highs and higher-lows.
Here’s what I see as the top 3 sectors right now:
- Utilities
- Staples
- Technology
The 3 worst sectors are:
- Energy
- Financials
- Discretionary
Let’s review the sectors:
Basic Materials (XLB)
Energy (XLE)
Financials (XLF)
Industrials (XLI)
Technology (XLK)
Consumer Staples (XLP)
Utilities (XLU)
Health Care (XLV)
Consumer Disretionary (XLY)