Not so easy to come, fairly easy to go. Equity markets made a nice advance yesterday on Greek polls that show the citizens want to stay in the Euro, and rumors of stimulus. However, the European and Chinese Central Banks shot those ideas out of the minds of investors immediately. Even the Bank of Japan says they can do no more, and it is up to the politicians to get things moving – good luck with that.
This morning, the Dow started down triple digits on the news that Spain’s borrowing costs rose, and its banking system is on shaky ground. The EU debt contagion is spreading like a malignant tumor. A massive bank run could be the end game, stay tuned.
If you recall last summer’s debt crisis, the market’s next immediate move was very difficult to assess. One day it was the fears have eased, and stocks would rise, a lot. The very next day it was back to panic mode and equities would give up more than they got the previous day. That was after the August free-fall. The sky didn’t really clear up until early October.
It wouldn’t be surprising to Top Equity News to see a similar summer of 2012, with the big exception of the November election, and another debt ceiling fight in September/October.
It becomes more important to know which sectors are strong and which are weak relative to the S&P. Here’s this week’s skinny list of out and under performance candidates.
EMERGING BUY: industries with positive technical analysis traits that are in the early stages, indicating possible above average returns in the near-term:
Electrical Equipment
Industrial Transportation
Specialty Chemicals
Recreational
Trucking
MATURE BUY: industries that have outperformed and their charts suggest the above average returns could continue:
Airlines
Specialty Construction
Industrial Machinery
Media
Footwear
Broadline Retail
Home Construction
Distilleries/Vintners
MATURE SELL: industries that have underperformed and, based on their current chart patterns, could continue to lag:
Defense
Oil & Gas
Heavy Construction
EMERGING SELL: industries that have fresh negative technical analysis set ups and could have subpar performance in the weeks ahead:
Home Improvement
Sector Selector: European Summer Replay from 2011 for 2012? is an article from: 
