econintersect.com
       
  

FREE NEWSLETTER: Econintersect sends a nightly newsletter highlighting news events of the day, and providing a summary of new articles posted on the website. Econintersect will not sell or pass your email address to others per our privacy policy. You can cancel this subscription at any time by selecting the unsubscribing link in the footer of each email.



posted on 20 March 2017

Market And Sector Analysis 18 March 2017

by Lance Roberts, Clarity Financial

S&P 500 Tear Sheet

The “Tear Sheet" below is a “reference sheet" provide some historical context to markets, sectors, etc. and looking for deviations from historical extremes.

If you have any suggestions or additions you would like to see, send me an email.


Sector Analysis

Despite the rout in interest rate sensitive sectors of the market last week, the sector rotation continues currently with only a couple of exceptions.

Technology and Discretionary picked up steam last week moving from weakening back into leading for the moment.

Industrials, Materials, Financials, Small and Mid-Cap stocks continued to weaken in terms of relative performance.

Energy continued to struggle after breaking its 50-dma and is now flirting with breaking its 200-dma. The big risk right now is a failure of oil prices (West Texas Intermediate Crude) to hold $48/bbl. A failure at that level will likely bring a lot more selling into the commodity putting further downward pressure on the energy sector.

Utilities, Healthcare, and Staples just had the 50-dma cross back above the 200-dma suggesting a much better buying opportunity on sector pullbacks in the future. We will be looking to add to our current holdings on such an opportunity.

Emerging Markets, International, and Dividend Yield Stocks are again very overbought. The bull trend is still intact but some profit taking and rebalancing is advised.

As noted Small-Cap and Mid-Cap stocks are testing their 50-dma’s. Neither are oversold currently, so watch for further deterioration.

Bonds and REIT’s got oversold last week and performance improved this past week. If the broad markets run into trouble look for a continued rotation in the “safety trade."

Overbought conditions exist almost unilaterally across the entire complex suggesting a higher risk/reward condition currently until a correction occurs. Due to this condition, we did rebalance portfolio weightings three weeks ago to raise some cash. As noted, we are not adding any new equity exposure currently for this reason. We are, however, actively buying individual bonds for portfolios.

The table below shows thoughts on specific actions related to the current market environment.

(These are not recommendations or solicitations to take any action. This is for informational purposes only related to market extremes and contrarian positioning within portfolios. Use at your own risk and peril.)

Portfolio Update:

After hedging our long-equity positions 13-weeks ago with deeply out-of-favor sectors of the market (Bonds, REIT’s, Staples, Utilities, Health Care and Staples) we did rebalance some of our long-term CORE equity holdings back to original portfolio weightings harvesting a bit of liquidity.

The short-term bullish trend is still very positive which keeps us allocated on the long-side of the market. HOWEVER, the technical setup required for an increase in equity risk in portfolios currently is NOT FAVORABLE currently.

We continue to maintain very tight trailing stops as the mid to longer-term dynamics of the market continue to remain very unfavorable as well.

Rebalancing remains strongly advised.

>>>>> Scroll down to view and make comments <<<<<<

Click here for Historical Investing Post Listing










Make a Comment

Econintersect wants your comments, data and opinion on the articles posted. You can also comment using Facebook directly using he comment block below.




Econintersect Investing








search_box
Print this page or create a PDF file of this page
Print Friendly and PDF


The growing use of ad blocking software is creating a shortfall in covering our fixed expenses. Please consider a donation to Econintersect to allow continuing output of quality and balanced financial and economic news and analysis.







Keep up with economic news using our dynamic economic newspapers with the largest international coverage on the internet
Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government





























 navigate econintersect.com

Blogs

Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day
Weather

Newspapers

Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government
     

RSS Feeds / Social Media

Combined Econintersect Feed
Google+
Facebook
Twitter
Digg

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution

Contact

About

  Top Economics Site

Investing.com Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2017 Econintersect LLC - all rights reserved