• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Stock The Best Five Sectors, #6
Stock

The Best Five Sectors, #6

by February 10, 2025
by February 10, 2025 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

No Changes In Top-5

At the end of the week ending 2/7, there were no changes in the top-5, but there have been some significant shifts in the bottom 5 sectors.

Most notably is the Consumer Staples sector which moved from 10th to 7th and the Healthcare sector which moved from 11th to 8th.

Real Estate remained unchanged at the 9th position. While Energy dropped to 10th from 7th and Materials dropped to the last position from 8th.

New Sector Lineup

(1) Consumer Discretionary – (XLY)(2) Financials – (XLF)(3) Communication Services – (XLC)(4) Industrials – (XLI)(5) Technology – (XLK)(6) Utilities – (XLU)(10) Consumer Staples – (XLP)*(11) Health Care – (XLV)*(9) Real Estate – (XLRE)(7) Energy – (XLE)*(8) Materials – (XLB)*

Weekly RRG

On the weekly RRG, the tails for XLY, XLC, and XLK are, still, inside the leading quadrant. XLK just crossing over from improving. XLF is inside weakening but at a negative RRG-Heading. And XLI is moving deeper into the lagging quadrant at a negative RRG-Heading.

The most interesting observation on the RRG is that no sectors are currently positioned inside the improving quadrant. The Healthcare sector seems closest to crossing over but at the same time, it is the sector with the lowest RS-Ratio reading.

Daily RRG

On the daily RRG, we can see why Staples and Healthcare made such big jumps. Both tails are pushing deeper into the leading quadrant on long tails.

Communication Services and Financials are confirming their positive outlook by continuing to move up on the RS-Ratio scale with only a minimum loss of relative momentum so far. XLY has returned to the leading quadrant but has already started to roll over. The positive thing for this sector is that it is all happening very close to the benchmark and on a very short tail.

Technology is the problem child on this RRG. This sector returned into the top-5 last week but is now again showing weakness on this daily RRG at the lowest RS-Ratio reading.

As I mentioned last week. The entry of XLK into the top 5 is not because of its strength but more as a result of weakness in other sectors. It’s all relative.

Consumer Discretionary

XLY is still holding above support, but last week formed a new peak. slightly lower, against the resistance offered by the mid-December peak. This makes the area between 235 and 240 an even more important barrier now.

First important support remains located around 218.

Relative strength is rolling over, but there is enough leeway for a correction after the strong move from August 2024 to now.

Communication Services

Communication Services is continuing to perform well and even managed to close higher than last week, confirming the uptrend in price.

As a result, and given the weakness of other sectors and the SPY, relative strength for XLC is continuing to push the XLC tail further into the leading quadrant.

Financials

Financials also managed to put in a higher close for the week, confirming the current uptrend in price.

Relative strength has also taken out its previous high. When both price and RS can hold these trends, the RRG lines will soon turn up again and complete a leading-weakening-leading rotation, underscoring the attractiveness of the financials sector for the time being.

Industrials

Industrials did not manage to reach or take out its previous high and has now put a lower high in place. This still happening inside the rising channel but it is not a sign of strength so to say.

A similar thing can be said about the relative strength for XLI. With both RRG lines below a 100 and falling the tail is being pushed further into the lagging quadrant.

Technology

The technology sector recovered well after a test of the lower boundary of its rising channel.

This is holding relative strength within the boundaries of the trading range which supports the slow improvement of the RRG lines. With RS-Ratio at 100.04, XLK has now just crossed into the leading quadrant.

Portfolio Performance

Shortly after the opening this Monday the portfolio is at a 4.01% gain vs 3.23% for SPY since the start of the year, picking up 0.78%.

Summary

The top-5 remains unchanged this week but in the bottom part of the list some noticeable changes are taking place. Mainly in favor of defensive sectors like Healtcare and Consumer Staples, after Utilities already rose to the #6 position last week.

For the time being the top-5 is still dominated by offensive sectors like XLY,XLC, and XLK. But how long will this last?

#stayAlert and have a great week. –Julius

You Might Also Like
  • Be Willing to Change Your Mind
  • An Indicator to Define the Trend and Quantify Momentum
  • DP Trading Room: This Powerful Scan Finds Stocks Showing NEW Momentum
  • Trade War Mayhem? Here’s How to Cut Through the Noise!
Share
0
FacebookTwitterPinterestWhatsapp

previous post
TSMC Sales Growth Slows Amid Global Challenges
next post
DP Trading Room: Gold Hits Another All-Time High

You may also like

DP Trading Room: Carl’s Grab Bag! – Chipotle (CMG), NVDA,...

June 24, 2024

DP Trading Room: Why SPY, Not SPX? Dividends!

May 15, 2023

MUST SEE Options Trade Ideas! DIS, AAPL, META, BA, LULU

December 24, 2024

What Are The Chances Of A Market Crash? This Indicator...

November 26, 2023

AMD Plunges to a Critical Support Level: Is Now the...

April 16, 2024

Technology Shares PLUNGE to Kick Off 2024

January 3, 2024

Bonds Got Clipped. Now What?

November 5, 2023

Stealth AI Stocks Are Taking Off in a Flat Market

October 4, 2024

Major Investing Themes Upcoming

June 9, 2023

What Could Go Wrong This Week? Ummmm, A Lot!

June 11, 2023

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout, pulls outlook

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025
    • The Unpredictable Stock Market: How to Make Sense of It

      May 8, 2025
    • AMD CEO calls China a ‘large opportunity’ and warns against strict U.S. chip controls

      May 7, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,632 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,339 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,320 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,302 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,186 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout,...

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    Stock Market Sells Off Ahead of...

    December 11, 2024

    M2 Continues to Fall, Making Stocks...

    August 23, 2023

    Why the NAAIM Exposure Index Matters...

    February 8, 2024
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here