Out of nowhere, today’s Institute for Supply Management (ISM) manufacturing report prints an out of the box topside surprise. With yesterday’s regional manufacturing news from Dallas and Chicago, the result was truly unexpected on the good side.
The ISM report breaks a string of major economic report disappointments and flies in the face of last week’s first quarter GDP growth numbers. It’s like the Sesame Street (or was the Electric Company?) skit of one thing doesn’t belong where they would show something like three fruits and a truck tire, and you have to pick the one that doesn’t fit. Today’s ISM report is the truck tire. Let’s hope the apple, orange, and banana are replaced with other types of tires in future news on the economy.
As always, having an understanding of the macro or top down picture is important, and right now the outlook is mixed at best for the ongoing health of the economy. It’s just as important to keep track of what’s happening on the ground. Where is the money flowing as defined by which sector and industries are poised to out or under-perform?
Top Equity News believes the days of a rising tide lifts all ships of indiscriminate buying are gone – for now – and must be replaced with a more selective, focused, what’s working now approach.
A few things emerge in this week’s sector selector, insurance stocks look ready to roll – maybe it’s going to be a light natural disaster summer and fall? Telecom and utilities join insurance stocks as industries that are likely to do better than most in the weeks ahead.
Here are the full lists.
EMERGING BUY: industries with positive technical analysis traits that are in the early stages, indicating possible above average returns in the near-term:
Airlines
Beverages
Personal Products
Specialty Construction
Fixed Telecom
Reinsurance
Nonlife Insurance
Multiutilities
Pharmaceuticals
Broadline Retail
Soft Drinks
Insurance Products
Telecom
MATURE BUY: industries that have outperformed and their charts suggest the above average returns could continue:
Media
Broadcasting
Consumer Services
Property & Casualty Insurance
Business Support
Hotels
Consumer Finance
MATURE SELL: industries that have under-performed and, based on their current chart patterns, could continue to lag:
Delivery Services
Autos
Business Training
Industrial Engineering
Household Goods
Commercial Vehicles
Furnishings
EMERGING SELL: industries that have fresh negative technical analysis set ups and could have subpar performance in the weeks ahead:
Clothing
Telecom Equipment
Industrial Suppliers
Industrials
Paper
Forestry & Paper
Durable Household Products
Non-Durable Household Products
Trucking
Sector Selector: One of These Things is not Like the Other is an article from: 
