Last week was another great week for stocks as the indexes tacked on another 2%. As a result of the stock market pushing higher, these sectors produced new technical analysis buy signals on their stock charts.
Despite stocks heading north last week, we see mucho grande danger ahead for auto related stocks. September is looking like a horrible month for auto sales. We wrote about the initial warning flares on September 1. This Edmunds.com September Auto Sales Report points out that cash for clunkers pretty much killed future demand and is killing profits. We would advise keeping a very close eye on Auto Stocks and Auto Parts Stocks as both sector charts produced technical analysis sell signals.
We would also keep an eye on Medical Equipment Stocks, Semiconductor Stocks and Property & Casualty Stocks. While none have produced an official sell signal, recent price movements have pushed these sectors below key support levels on their stock charts.
