Read a post by Brett Steenbarger and would like to share with friends here. I agree with Brett that the stock market is an environment of sector rotation, rather than a general trending up or down.
"... I follow a basket of 40 stocks, which consists of five highly-weighted issues within each of eight S&P 500 sectors...
Interestingly, after Monday's drop and Tuesday's rise, we have 13 of the stocks in the basket trading in uptrends, 14 neutral, and 13 in downtrends. This suggests an environment of sector rotation, rather than one of general trending...
Weakness in the commodity-related sectors, Materials and Energy, is evident. The two strongest sectors are among the most recession-resistant: Consumer Staples and Health Care... "
Read full post at http://traderfeed.blogspot.com
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