The past few weeks has made for a very boring market. But boredom can breed ideas at times. I've watched the stock market endlessly looking for signs of life and I may have found some.
I said to myself, "there has to be a stock or sector, setting up somewhere for a trade."
While I can sit for hours on end looking through charts for possible trades, I had no intentions on going through thousands of charts.
So I decided to resort to an old method and take a short cut by looking through sector ETFS. By doing this; I had hopes of getting a glimpse into what sector (s) my attention should be 'zeroed-in' on.
Specifically speaking, I went through 9 SPDR ETF's.
Consumer Discret Sel Sect SPDR ETF (XLY)
The Select Sector SPDR Trust - The Consumer Staples Select Sector SPDR Fund (XLP)
The Select Sector SPDR Trust - The Energy Select Sector SPDR Fund (XLE)
The Select Sector SPDR Trust - The Financial Select Sector SPDR Fund (XLF)
Health Care Select Sector SPDR ETF (XLV)
The Select Sector SPDR Trust - The Industrial Select Sector SPDR Fund (XLI)
The Select Sector SPDR Trust - The Materials Select Sector SPDR Fund (XLB)
The Select Sector SPDR Trust - The Technology Select Sector SPDR Fund (XLK)
SPDR S&P Retail ETF (XRT)
After a "good enough" analysis; I would say most are in the extended or approaching the over/extended territory, with the exception of healthcare and retail.
As odd as that may sound; if you're looking for trade ideas on the long side; pay attention to the healthcare and retail sector.
What are your thoughts?
Tina Lashley holds a Bachelor of Arts in Forensic Psychology and a Master's of Science in Mental Health Counseling and has been a stock market participant for over a decade. Currently a Full-Time Trader and Blogger of all things financial.