20130712 Moving Average Breadth
The markets came out this week and proved to many this was more than window dressing or a holiday week ramp. It was the end of a correction. I mentioned to my partner a couple weeks back that I noticed in recent years turns have been near holiday weeks. Could just be a coincidence or maybe not. This week we saw both expanding breadth and expanding volume as we made new highs. It is hard to argue with action like that. At this point most breadth figures are back in gear and getting near highs. These highs are being confirmed almost across the board. Enjoy it, don’t fight it. Sure, being it is summer, we could see more volatility, but the structure is solid and markets are moving ahead with or without you. It’s your decision.
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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