This week, TOP Equity News finds more balance between sectors showing signs of outperforming or underperforming in the next 1 to 3 months. So, maybe, the less lopsided results indicate that the current correction will not be that deep or harsh. TEN can see the indexes testing their March lows and hopefully that’s it, a run-of-the-mill 5% pullback.
However, we do see strong trends emerging. Based on our technical analysis of the industry charts, a theme for where money is going is clearly defined; Wall Street believes people are going to spend money on themselves and “sin” stocks. While the evening out of buys and sell is a good sign, the industries in the bull columns are considered defensive. It could be a sign that Wall Street expects earnings growth to slow.
Additionally, Top Equity would advise our readers to concentrate on large-cap stocks, particularly growth, and avoid mid and small-caps. The charts for small and mid-sized companies are rolling over and don’t look good right now. It’s possible that Apple Inc. (AAPL) is distorting the large-cap growth picture, but the chart says buy. So, we record it as a buy.
Although volatility, or fear, as measured by VIX still indicates that investors are fairly complacent and not worried about too much, Top Equity News reads the avoidance of smaller companies as risk off. TEN Would not be surprised to see the weekly range between highs and lows expand in the weeks ahead.
EMERGING BUY: industries with positive technical analysis traits that are in the early stages, indicating possible above average returns in the near-term:
Beverages
Personal Products
Consumer Goods
Personal Goods
Soft Drinks
MATURE BUY: industries that have outperformed and their charts suggest the above average returns could continue:
Gambling
Travel & Leisure
Consumer Services
Business Support
Personal Household Goods
Apparel & Retail
Specialty Retail
Consumer Finance
General Retailers
Tobacco
MATURE SELL: industries that have under-performed and, based on their current chart patterns, could continue to lag:
Aerospace
Medical Equipment
Basic Materials
Specialty Chemicals
Food Retail/Wholesale
Oil & Gas
Oil Equipment Services
Tires
EMERGING SELL: industries that have fresh negative technical analysis set ups and could have subpar performance in the weeks ahead:
Media
Chemicals
Commercial Chemicals
Construction & Materials
Industrial Suppliers
Electronic Components
Industrial Engineering
Industrials
Semiconductors
Sector Selector: Narcissistic Charts is an article from: 
