Nine Sector Grid Overview Shows Bullish Strength
Wed, Oct 4, 11:51 AM ET, by Corey Rosenbloom
As the market jumps to another new all-time high, let’s step inside the market to see money flow among the nine sectors.
It’s revealing a bullish picture as this grid helps us visualize what’s happening beneath the market.
Here we go!
We’re seeing our Nine Sector Grid with the AMEX Sector SPDRs in our Sector Rotation Style.
The top six ETFs are in the “bullish” or “offensive” group while the bottom three are “defensive.”
We use this logic to cross-check if money is moving toward Risk-ON or Risk-OFF activities.
Let’s just ask which sectors are outperforming the others – we just look at the hourly price trend:
Financials (XLF), Tech (XLK – except for today’s down-gap) , Discretionary (XLY), Industrials (XLI), Materials (XLB), and even Energy (XLE).
Our three “bearish” or Risk-OFF sectors are showing money flow OUT of these groups with the exception of Health Care (XLV).
Staples (XLP) and Utilities (XLU) are hitting new swing lows via intraday downtrends.
For the moment, the situation remains “Risk-ON” bullish or offensive in terms of money flow among sectors.
Continue watching this picture for any sudden changes in money flow across our sector grid.
Follow along with members of the Afraid to Trade Premium Membership for real-time updates and additional trade planning.
Corey Rosenbloom, CMT
Afraid to Trade.com
Follow Corey on Twitter: http://twitter.com/afraidtotrade
Corey's book The Complete Trading Course (Wiley Finance) is now available along with the newly released Profiting from the Life Cycle of a Stock Trend presentation (also from Wiley).”
SDI Glossary: "price" Definition
SDI Glossary: "ETFs" Definition
SDI Glossary: "Finance" Definition
SDI Glossary: "Risk" Definition
SDI Glossary: "Sector" Definition
SDI Glossary: "Stock" Definition
SDI Glossary: "Trend" Definition
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