| Industry group | 1 month performance |
| Building – Residential | 19.70% |
| Finance – Consumer loans | 12.50% |
| Retail – Apparel Shoes | 12.30% |
| Banks – major regional | 11.30% |
| Banks – southwest | 11.20% |
| Oil – US exploration | -23.30% |
| Oil Field Machinery EQ | -26.60% |
| Machinery – Electrical | -27.20% |
| Steel – Producers | -29.70% |
| Coal | -65.57% |
| Money continues to slowly flow out of stocks. The one month | |
| RS rank is occupied by members of the retail and financial | |
| sectors. For first week since middle of July, they experienced | |
| stronger selling pressure. | |
| The usual suspects at the bottom (commodity related industries) | |
| finished the week lower, despite showing some resilience as the | |
| weekend approached. The small bounce in Thursday and Friday | |
| is most likely due to short covering than a consequence of | |
| renewed funds’ long interest. | |
| Market’s weakness is spreading slowly in all directions and there | |
| are fewer places to hide. If you are a retail investor, flexibility is | |
| your biggest weapon. There are no good or bad stocks, only | |
| good or bad trades. | |
Month: September 2008
Being Objective
The market reaction to news is more important than news itself.
You trade what you see, not what you think should happen.
Industry Relative Strength
| Industry group | 1 month performance |
| Building – Residential | 19.40% |
| Retail – Apparel shoes | 15% |
| Retail – Wsale Auto | 11.30% |
| Finance – SBIC Commercial | 10.30% |
| Finance – Consumer Loans | 10.10% |
| Mining – Silver | -18% |
| Oil Field Machinery EQ | -18.80% |
| Food – Meat Products | -21% |
| Steel – Producers | -29.50% |
| Coals | -37.70% |
| The group “Building – Residential” scored third consecutive week of gains and continues to top the list of monthly RS. The Retail – Apparel, shoes group is in strong uptrend since the middle of July and climbed to second position. Last week brought 2 financial industry groups at the top. Both are advancing in good temp since the middle of July. Medical groups, which dominated the list during the last month had bad week and only one (Medical – Hospitals) managed to stay in top 10. | |
| Looking at the bottom of the list, nothing changed. The same industry groups experienced even bigger correction. | |