Breadth Leaders Suggest Keeping the Offense on the Field

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Breadth Leaders Suggest Keeping the Offense on the Field

This weekend in my normal Moving Average Breadth review the breadth measures were Football Playunder pressure due to the rough week, but I mentioned my read was the sectors that were holding up the best favored the markets going higher and the economy firming.  Basically starting the new year with the offense on the field looking to work our way toward the touchdown.  After Mondays strong end to the year let’s take a look at the leading players right now.

Of course we start with the total universe of 1898 securities so we have a comparative.  this is posted over the $SPY

12-31-2012 Total Universe wSPYSo now that we have our baseline, the 3 sectors I think look the strongest are Industrials, Materials and Financials

12-31-2012 IndustrialsIndustrials (252)

12-31-2012 Materials

Materials (148)

12-31-2012 Financials

Financials (316)

with an honorable mention more Technology

12-31-2012 TechnologyThe top three have been showing strong breadth even during the pullbacks.  Technology is improving and held the pullback last week very well, so we should keep an eye on it as it is one of the best offensive sectors historically.

These sectors leading the markets while defensive sectors like Utilities, Health Care and Telecom lagging are a positive and a change in character for the markets in the coming year.  It also paints a picture of economic growth stabilizing and maybe even surprising to the upside in 2013. We shall see!

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, 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.