Join        Login             Stock Quote

Share Market Weekly Review: Bullish On Vacations

 January 03, 2013 01:28 PM

(By Rich Bieglmeier) With stocks charging higher along with taxes for most Americans, iStock expected to find a slew of bullish sectors in this week's sector performance review. We were not disappointed. The number of bullish industries outnumbers bearish friends by a little more than two to one.

We see a strong trend and liking for industrial, chemical and some discretionary spending stocks. Meanwhile, retail and healthcare related stocks could be in trouble, in the days and weeks ahead.

It looks as if Wall Street anticipates that consumers will spend money on vacationing and furnishings, but not on clothing or general merchandise. But, don't most buy new clothes before going on vacation?

Semiconductors, gambling, hotels, and telecom equipment have the "best look" to them in our view. We'll be scanning through each of them for some potential ideas.

[Related -Is The Slump In US Manufacturing Easing?]

Traders also appear to be worried about healthcare stocks as sub-industries such as biotechs, pharmaceuticals, and medical equipment (Obamacare tax casualty?) joined the broader healthcare sector in the two bearish columns. A bearish consensus on retail stocks is evident with specialty retail, broadline retailers, and general retailers firmly exhibiting under-performance characteristics.

Investors looking to take advantage of and make the most of another "January Effect" might consider adding companies from our bullish sectors and avoiding the bears.

EMERGING BULL: Industries with positive technical analysis traits that are in the early stages, indicating possible above average returns in the near-term:

  • Basic Materials
  • Gambling
  • Commercial Chemicals
  • Travel & Leisure
  • Telecom Equipment
  • Industrial Suppliers
  • Marine Transport
  • Real Estate
  • Semiconductors
  • Steel
  • Commercial Vehicles

[Related -Market Potentially Facing Near Term Technical Headwinds]

MATURE BULL: Industries that have outperformed and their charts suggest the above average returns could continue:

  • Asset Managers
  • Electronic Equipment
  • Auto Parts
  • Media
  • Building Materials & Fixtures
  • Chemicals
  • Construction & Materials
  • Electronic Components
  • Electrical Equipment
  • Industrial Machinery
  • Industrials
  • Industrial Engineering
  • Hotels
  • Tires
  • Furnishings
  • Small-cap Value
  • Small-cap
  • Low-cap
  • Mid-cap

MATURE BEAR: Industries that have underperformed and, based on their current chart patterns, could continue to lag:

  • Medical Equipment (graduated from emerging bear)
  • Beverages
  • Specialty Retail
  • US Gas Distribution

EMERGING BEAR: Industries that have fresh negative technical analysis set ups and could have sub-par performance in the weeks ahead:

  • Biotech
  • Clothing
  • Pharmaceuticals
  • Broadline Retail
  • Retail
  • General Retailers
  • Healthcare   
iOnTheMarket Premium


Post Comment -- Login is required to post message
Alert for new comments:
Your email:
Your Website:

rss feed

Latest Stories

article imageEmerging-Markets Stocks Took The Lead Last Week

Emerging-markets equities enjoyed a solid rise last week among the major asset classes, based on a set of read on...

article imageDoes Your Latest Investment Pass This Test?

On Wednesday, I sounded the alarm about the problems looming for some consumer staples stocks. In short, read on...

article imageIs The Slump In US Manufacturing Easing?

Yesterday’s November survey data from the Philadelphia Fed hints at the possibility that a stronger trend read on...

article imageMarket Potentially Facing Near Term Technical Headwinds

After the S&P 500 Index pullback on Thursday and Friday last week, the market's advance on Monday and read on...

Popular Articles

Daily Sector Scan
Partner Center

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.