FEBRUARY 20,2018

relative strength wednesday

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Relative Strength Wednesday shows us that EVERY sector has delivered positive returns in the previous 1 month. Even energy has generated positive returns in that time. Even when we look to the three month  period only one sector remains negative, Consumer Staples.  Power Gauge ratings remain defensive as utilities remain the only Very Bullish rating, along with health care, staples and real estate grabbing bullish ratings.  Industrials also move to bullish, led mostly by aerospace which has delivered 14% in the past month.  Looking for Chaikin buy signals in the three leading subsectors( 1 month returns; XSD,XITK,XAR)  proved difficult. 

YY, part of the XITK, was the lone buy signal and not one we would take. Our rules dictate the negative money flow automatically disqualifies us from entering a bullish trade.  So, we'd pass.  Sometimes sitting on your hands is the prudent thing to do.  We feel today is one of those days.