Remember in the first half of last year, it was only the Energy stocks that were in Uptrends.
You can use a simple 200 day moving average to point to and say, “OK price is above that so it’s probably not a downtrend”.
Then in October, we were talking about how Bear Markets are a choice, and one that investors didn’t have to sit through if they didn’t want to.
By that point, Healthcare was already being added to the list of Sector Indexes that were above their 200 day moving average.
So now entering Q4 you had Energy AND Healthcare.
By November, you then had 3 more added to the list of uptrends: Financials, Industrials and Materials.
To be clear, the list of Sectors in uptrends kept getting longer throughout the 4th quarter, not shorter.
And so now here we are, with all of those sectors still above their 200 day moving averages. But you can also add Technology and Communications to that list as well.
Yes I’ll say it again, Technology and Communications – some of the worst performing groups in the world over the last couple of years. [Read more…]