US Sector Update: Friday, November 9, 2012

Bull and bear markets - and corrections - occur in evolutions, not events.  So we now have completed the Election process that has dominated the thinking of investors for well over a year, and in the last two days, we've seen some sharp weakness, but if you really put this weakness in perspective, you can see the steady evolution.
 
All year long, the topic has been that the US stock market was the only game in town, as we saw the very international oriented Industrials and Basic Materials stocks hit very hard.  But as shown in the tables below, that evolution appears to be moving to a new broader-based, and economically oriented status.
 

 
Industrials and Basic Materials stocks are leading the parade in the percentage of stocks moving above their 50-day moving average.  We have been moving up our recommended weighting in these sectors for the last several weeks and they still appear as the "comeback" sectors.
 
 
Don Hays, Nicholas Warf & Justin Wood
 
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