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:

  1. Utilities
  2. Staples
  3. Technology

The 3 worst sectors are:

  1. Energy
  2. Financials
  3. Discretionary

Let’s review the sectors:

Basic Materials (XLB)

xlb 2

join the swing trading splash zone

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

 

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