On Friday I was trying to decide if I wanted to carry any positions over the long weekend and it was a fairly easy decision because I’m so torn on the future direction of the markets. I’m noticing strength in individual sectors, but the overall markets seem to be losing momentum and I’m not sure the dip buyers are going to show up this time. Without trying to be a bull or a bear, I’ve decided to pay attention to the strongest sectors and here are a few that I’ve deemed the strongest.
These industry groups are the furthest away from their 4 day moving average and their daily charts all have a ADX that is moving up in conjunction with a +DI relationship to the -DI. This tells me that not only are the buyers pushing up these sectors, the longer term trend is conducive for a continued advance. Should the markets stay positive, these are the sectors I’ll be focusing on. I’ve included some of the best performing stocks in these industries to help narrow your focus on the leaders.
I’ll try and do a post on some of the negative things I’m seeing in the overall indexes later tonight. You can then decide if you are a bull or a bear.
