OIH has moved up a percent or so since I pointed out the tight trading range it was in last week:
XLB, the basic materials ETF, is also showing strength, a good sign for those
looking for an upturn in the economy.
What I don't like is the weakness in the overall market. The SPY for instance,
if Thursday's down-close ends up being a short-term high, will have set a
lower-high. More worrisome is the number of recent down-close days with above
average volume:
There are a number of big-name stocks with similar patterns, setting lower
highs with strong volume on down-close days.
The financials however are doing well, as IYF's chart shows. In past
recoveries, financials have often led the pack (ok, not 2009, but many other
times).
As far as themes on individual stocks, insurance stocks have been showing
considerable strength for some time. American Financial Group (AFG), Aflac
(AFL), Allstate (ALL), Chubb (CB), (Hartford Financial (HIG), and many more are
all showing signs of steady accumulation. Somebody thinks insurance stocks are
a bargain right now, and these stocks often have strong seasonal patterns
indicating institutions take interest in them this time every year.
Of course, there's much more you need to know and many more stocks you can
capitalize upon each and every day. To find out more, Click Here: www.markettamer.com/newsletters
By Gregg Harris, MarketTamer Chief Technical Strategist
Copyright (C) 2013 Stock & Options Training LLC
Unless indicated otherwise, at the time of this writing, the author has no positions in any of the above-mentioned securities.
Gregg Harris is the Chief Technical Strategist at MarketTamer.com with extensive experience in the financial sector.
Gregg started out as an Engineer and brings a rigorous thinking to his financial research. Gregg's passion for finance resulted in the creation of a real-time quote system and his work has been featured nationally in publications, such as the Investment Guide magazine.
As an avid researcher, Gregg concentrates on leveraging what institutional and big money players are doing to move the market and create seasonal trend patterns. Using custom research tools, Gregg identifies stocks that are optimal for stock and options traders to exploit these trends and find the tailwinds that can propel stocks to levels that are hidden to the average trader.
Related Posts
Also on Market Tamer…
Follow Us on Facebook