From the desk of Steve Strazza @Sstrazza
For the week ended Friday, May 29, 2020:
Every weekend we publish performance tables for a variety of different asset classes and categories along with commentary on each.
This was a special week as Friday marked the end of May which means fresh monthly candlestick data. Analyzing these long-term monthly charts every several weeks is a great exercise as it forces us to take a step back and identify the structural trends that are in place.
As such, this week’s theme is the continued outperformance over both the short and long-term from those areas sporting the strongest primary uptrends.
Tech $XLK is by far the best performing sector over the trailing year. It is also the 2nd best over the past month and quarter, behind Communications $XLC and Health Care $XLV, respectively. Not surprisingly, these same sectors are also the next best performers over the trailing year.
Click table to enlarge view.
This tells us that the strongest sectors coming into the recent selloff have maintained leadership coming out of it.
JC noted the strength from these areas in his May Monthly Charts post as these sectors were all on his list of new all-time monthly closing highs.
Click chart to enlarge view.
The following Industry ETFs were also on that new all-time high list: Semiconductors $SOXX, Software $IGV, Internet $FDN, Medical Devices $IHI, and Biotech $IBB.
Notice how there is a lot more green in these ETFs across all timeframes. No different from our Sector list above, these secular leaders continue to exhibit relative strength over the near term as well.
Here are monthly charts of the Tech Industry ETFs mentioned above making new all-time closing highs.
By glancing at our US Index table below, I'm sure you can guess which one of these ETFs was also on that new all-time closing high list...
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