Overtime
Sector check-up
Good morning,
We’ve got a lot to review after a week off, so I reserved most of our sector work from the Playbook for today’s Overtime report.
The layout you’ll see here today is one of my favorites, and my go-to for our monthly trades. We’ll review the absolute technicals for all 11 S&P 500 sectors using the SPDR ETFs, 3-month flow data for a sentiment check, and relative strength to demonstrate how well the sector is doing vs. the index.
We’ll go down the list in order of where each sector sits within its 52-week range, a rough proxy for relative strength itself.
Sectors
Healthcare
Healthcare looks great. XLV has broken out of a two-year base that measures to $190. 3-month flows sit near the neutral line, which shows the sector isn’t overly consensus (though some sub-group that are were highlighted in yesterday’s Playbook) and relative strength is neutral, but riding an uptrend line since early June.
Financials
Financials have also recently broken out of a base, with XLF hitting an all-time high early last week. Flows and relative strength are both neutral, so while I think XLF works higher, I like our focused position in the banks more.
Industrials
