Sector Review

We remove LMT and add CAT. We have a profit in LMT but that stock is breaking down. Defense stocks may have trouble under Trump, but construction should do well.

Breadth momentum has been very poor, and NASDAQ breadth in particular has continued to be extremely weak.

While equities should be ok until the election, we have concerns about 2025. We rarely change sector weightings before an election.

The markets have rallied back after early August’s pullback but Accumulation is weakening. Small Cap indexes still have the best Accumulation pattern, and QQQ the worst.

Stocks Indexes had a sharp drop in early August. Breadth momentum has been very poor, and NASDAQ breadth in particular has been extremely weak. The markets have rallied back after early August’s pullback but Accumulation is weakening.

Breadth momentum has been very poor, and NASDAQ breadth in particular has been extremely weak. As we go to press this is starting to improve. We see small cap indexes rally – which will not affect materially these sectors.

Stocks Indexes have rallied but the market is getting narrower. The market has tried to broaden out in fits and starts but is failing so far.

XLV broke out above 140, tested that area, and is starting another advance. XLI is similar. Most analysts are not talking about this. There is real potential here!

No Sector Weighting changes but a couple of stock moves in Consumer Staples, Technology, and Materials.

Stocks have rallied after a rough beginning to 2024.

The character of the market changed at the end of 2023, with RSP, Small Cap, and Mid Cap improving vs. the popular averages.

Stocks exceeded upside targets near 460 on SPY and are consolidating after a rough beginning to January.

Stocks hit downside targets near 420 on SPY, and now have rallied into the Christmas holiday. The character of the market has changed a bit, with RSP, Small Cap, and Mid Cap improving vs. the popular averages. 

The market is still too narrow, but we expect a strong end to 2023. The market should broaden out.

Stocks hit downside targets near 420 on SPY, and now are retesting that area.

In our Equal Weights, we note XLF and XLB have improved, and look strong.

Stocks have traded up to next resistance as measured by SPY. Except for the NASDAQ indexes, other indexes have been lagging.

(?ETF?) is a new breakout. We mentioned a possible upgrade last month. Now is the time, and note most analysts are not talking about this. There is real potential here!

We have not made any sector changes in this report, but we have made stocks changes, selling two of our high relative strength tech names.

We sold all trading positions into the end of January. We recommended buying them back as SPY hit 380 and have sold them again as SPY moved into the 420 area. Now, we expect a move down to the 380-area once again.