“The top stocks in the SP500 are equal in weight of the bottom 250.” -Carter Worth
On 7/8/2016 the SP500 closed at 2,129.72 and on Friday it closed at 2,133.29. On 7/8/16 Eight of the nine S&P sectors were above their respective 50-day moving average, today only two are above.
XLK and XLE are the only two S&P sectors above their 50-day, if you believe in relative strength then those are the two sectors to focus on. The weakest of the bunch have been XLP, XLV, and XLU, these are the ones to look at if you believe in mean reversion.
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On a quarterly basis, AGG and TIP are stronger than SPY and DIA. The SP500, DJ-30, QQQ, IWM, Nasdaq Composite, MDY, are all a shade below their respective 50-day moving average.
As you can see below, the top 20 industries based on relative strength of the last 65-days is being dominated by the energy sector.
Some big heavyweights will be reporting this week; AMD, BAC, IBM, INTC, JNJ, MCD, MSFT, NFLX.
Over the last two weeks individual swing set-ups have dried up and have stopped working, most individual stock set ups stopped working right around the same time that ACIA announced their secondary offering.
Frank Zorrilla, Registered Advisor In New York. If you need a second opinion, suggestions, and or feedback in regards to the market feel free to reach me at email@example.com or 646-480-7463.
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