20130201 MA Breadth
January came to an end this week closing an exceptionally strong month in both price and breadth. A great start to the year. We even got a glimpse into February that started out pretty well. This underlying strength continues as the calls for a correction or reversal that started 1 week into the year continue to get louder. I might argue we have been correcting along the way. It is just being done sector by sector and more on an intraday time frame. Eventually the daily indicators will have to work off some of the overbought readings, but it doesn’t have to be with a big decline in price (although your risk plan should still be prepared for this). Instead, so far in this rally we have seen these play out in time which is another sign of strength and appetite for shares.
First the Total universe of 1898 companies posted over the $SPY
Next I split the universe into 10 custom broad sector indexes
Consumer Discretionary (325)
Consumer Staples (91)
Energy (132)
Financials (316)
Health Care (199)
Industrials (252)
Materials (148)
Technology (338)
Telecom (24)
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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