Sector analysis

[MS+Tradesim]

So I figure there should be a thread for sector analysis. To kick it off here is a chart comparing the GICS sectors to the XJO. Healthcare (XHJ) is outperforming very steadily and after running though the XHJ constituents I pick Ansell as one to watch. (I won't add how I would approach it as everyone has a different trading style and will approach situations very differently.) Have included monthly and daily charts.

 

[tech/a]

Sector analysis has been discussed many times before.

I have done a lot of work on it in the past (8 yrs ago).
My conclusion was that by the time a sector showed that it was clearly out performing the base index and the few stocks in it that were really belting along to hoist up the index ---- any benifit you were likely to get was lost as most of the out performance if not ALL had already passed.

So the trick is to identify EMERGING out performers.
Ive found a pretty good way of doing that.(well I think.)

On way is to use a scan as You have done usually using a comparitive strength comparison and the other is mine all mine.

There are no sectors which are staring (in my view).

The ASX top 20 as is the top 50 are out performing the all ords (top 500) so its the large caps currently pulling up the All Ords.

Gold and property though are clearly worst!

 

[MS+Tradesim]

Adding URSC to my systems has always resulted in outperforming an identical system that lacks it. Not all RSC methods are equal.

 

[Cam019]

BUMP! Thread Resurrection!

I thought it'd be nice to have a thread where we can post up charts and/or analysis about sectors that look like they could have potential to rotate into the current 'hot' sector in the not too distant future. It would be appreciated that just like the potential and outstanding breakouts threads, you have a chart (preferably) and/or explanation about what you are seeing and what you like about the sector and/or its chart.

A potential trend direction change for the XTJ with price recapturing the 50 and 100-day SMA's and price beginning to move up nicely toward recapturing the 200-day SMA ...OR it could be a bullish trap and it could plummet down to historical lows of around 900 (but I'm a glass half full kind of guy and it looks promising to me). Only time will tell.

Current charts of interest in this sector include: 5GN, MNF, SDA, TLS, TPM, VOC and ZIP.

XTJ: 5 Year Daily


XTJ: 1 Year Daily

 

[Cam019]

Here is the weekly chart for the XJO vs XTJ over the past 3 years. Significant under performance by the XTJ for the past 17 months.