Sector Performance: Cash Turning Auto Parts Stocks Into Clunkers
For the first time that we can remember – we didn’t uncover 1 new buy or sell signal during our technical analysis of more than 150 industry and sector charts.
We did see something in the charts that caught our eye, Auto Parts stocks look like they are weakening. If you think about it; it makes sense. Cash for Clunkers resulted in 690,000 new cars sold in just a few weeks. That means there are about 690,000 less used cares needing new parts and maintenance. This will have to have some impact on stores Like AutoZone, Pep Boys, Advanced Auto Parts… we wouldn’t be at all surprised to see some of these stocks exhibit some weakness in price, earnings and sales in the next 3-to-6 months.
We will keep an eye on these stocks, if and when any Auto Parts stocks hit short territory, we will let you know.
The Week’s Best Performing Sectors:
Performance versus the S&P 500
| Rank |
Industry |
% Return +/- the S&P |
% up/down |
| 1 |
PHOTO EQUIPMENT & SUPPLIES |
5.48% |
5.77% |
| 2 |
MISC TECHNOLOGY |
3.77% |
4.05% |
| 3 |
NONFOOD RETAIL-WHOLESALE |
2.73% |
3.01% |
| 4 |
APPAREL |
2.49% |
2.76% |
| 5 |
BANKS-MAJOR |
2.46% |
2.74% |
| 6 |
SEMICONDUCTORS |
2.28% |
2.56% |
The Week’s Poorest Performing Sectors:
Performance versus the S&P 500
| Rank |
Industry |
% Return +/- the S&P |
% up/down |
| 59 of 59 |
COAL |
-4.59% |
-4.33% |
| 58 |
MACHINERY-ELECTRICAL |
-2.27% |
-2.00% |
| 57 |
TELECOMMUNICATIONS EQUIPMENT |
-1.82% |
-1.55% |
| 56 |
CONS PROD-MISC STAPLES |
-1.69% |
-1.42% |
| 55 |
OIL-INTEGRATED |
-1.60% |
-1.33% |
| 54 |
TOBACCO |
-1.55% |
-1.28% |
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iStockAnalyst opinion. Further, the author is not personally advising you
regarding the suitability of the story for your investment needs. In no event
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