US Sector Update: Friday, November 2, 2012

In some ways, the most optimistic story we've heard this week comes from the action of our sector studies.  It is a very healthy sign when you have Telecom, Consumer Discretion, Healthcare and Financials performing such that they've landed in our over-weighted category, and 3 out of 4 are seeing a slightly increasing weighting. 
 
To join those 3 improving sectors is Industrials that was hit very hard as the international economies were tanking.  The Basic Materials sector is not getting an increase this week, but even the beleaguered sector is showing some signs of life.  In fact, the weakness in the Basic Materials sector occurred early in the year, and since June this sector has held its own.  In general, these are economically sensitive sectors, and that is very good news for those of us that like "growth-oriented" bull markets.  However, the one BIG missing link is Technology.
 
Check out this week's updated relative strength charts below.
 
 
 
 
Don Hays, Nicholas Warf & Justin Wood
 
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