January 12, 2014 SIN Executive Summary

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January 12, 2014 SIN Executive Summary

Total Market:

  • The most important message this week was the improvement in breadth over and above what was reflected in the major index price action.
  • Short Term indicators did pivot back higher which takes away one caution for now.
  • Longer Trend remains strong and actually improving on most measures.
  • No signs of breadth deterioration that usually accompany major topping patterns.

Broad Sectors:

  • A little more strength from defensive sectors this week, but may turn out to be new year rotation into last year’s weakness in Real Estate, Utilities and Health Care.
  • AD Line showed more volatility this week, but not enough to cause any concern. Some even improved overall for the week.
  • McClellan Indicators continue to be a great tell and sign the strength is still underneath this market.
  • Real Estate made a near term breakout this week trying to forge a bottom.
  • Health Care looks like it could be in the early innings when looking long term.

What We are Watching:

  • Small caps continue to perform well and still have some tailwinds.  I think they can remain out front near term. $IWM $IWO
  • Growth is pulling away from value. $IWO $QQQ $IWP
  • Sector concentration should lean toward Growth and Cyclical sectors with the addition of Health Care, which I believe is going through a game changing shift. $IAI $IYJ $XLK $FDN $SMH $ITA $IYT $IYF
  • Health Care, while not really a cyclical sector, I believe is going through a game changing shift that will drive it in a growth phase for a long time to come. $IYH $IBB $IHE $IHI $PSCH
  • Real Estate while still near the bottom of the RS Rankings is breaking out bases on some ETFs  $IYR $MORT $ROOF $VNQ

Thanks for taking the time to review this report.  I am looking for a visual reference point for this summary.  Some type of RPM gauges would fit perfectly…let me think on it for a bit.  If there are any other improvements I can make, I would love to hear them.  Please email me at gtlackey@gmail.com and please include your Stocktwits or Twitter handle.

Good luck this week.  It is there for the making!

G. Thomas Lackey Jr, CMT CFP®

Follow me on StockTwits and Twitter @gtlackey
(All market data above are derived from Stockcharts.com, Esignal, and Reuters Datalink)
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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.