20121228 Moving Average Breadth

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20121228 Moving Average Breadth

This week the markets helped reinforce that probabilities are just the odds.  The week after Christmas has an 80% probability of being positive;  We fell in the other 20% this year.  Of course much of this was headline driven week magnifying the nervousness in very thin trade, but that turned out to be a recipe for beating the odds.  Now the real question is what effects did it have under the surface.  I found a few things very interesting this week.  First Defensive sectors seemed to be sold the hardest building on an ongoing theme in December.  Second, Industrials and Financials held pretty well.  Lastly, Technology seems to be holding up much better than price is showing.  Of course that has a lot to do with $AAPL in the cap weighted tech indexes.  Let’s take a look.

First the Total universe of 1898 companies posted over the $SPY

12-28-2012 Total Universe with SPY

Next I split the universe into 10 broad sectors

12-28-2012 Consumer DiscretionaryConsumer Discretionary (325)

12-28-2012 Consumer Staples

Consumer Staples (91)

12-28-2012 Energy

Energy (132)

12-28-2012 Financials

Financials (316)

12-28-2012 Health Care

Health Care (199)

12-28-2012 Industrials

Industrials (252)

12-28-2012 Materials

Materials (148)

12-28-2012 Technology

Technology (338)

12-28-2012 Telecom

Telecom (24)

12-28-2012 Utilities

Utilities (73)

These are custom indexes so you cannot invest directly in them, but there are plenty of ETFs available for each sector.  For me personally this is another form of relative strength, just with a broader lens .

Good Luck!  It is there for you to make.

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(All market data above are derived from Stockcharts.com, Esignal, and Reutersdatalink)
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About Author


is a Chartered Market Technician (CMT) and Certified Financial Planner (CFPr) in Greensboro Georgia (Outside Atlanta). Founding partner of Barber Lackey Financial Group, LLC, a Registered Investment Advisor. However, this blog is not affiliated with BLFG and does not make recommendations to buy sell or hold any securities.