Sector positions for 15-03-2010
Technology which had strength on both weekly and daily ranking has leaded the list today, followed by Basic Materials. Apart from these 2 sectors all the rest have closed negative. The weaker sectors today were Telecom followed by Financials. Technology is weak on the weekly charts, so this rally shows that something is fundamentally brewing underneath this sector.
Financials are yet to retrace any bearish divergence, but the move from March 2009 did not coincide with the prominent sectors. It had a good side ways pattern for the past 4 months before making this current move up to reach for previous high levels.
Basic Materials is also one of the sectors which have not retraced any bearish divergence patterns yet. But there is no room left for new entries, you should have already boarded the train when it stopped or retraced to value in February last.
Consumer Services is the only sector which has more strength now. Of the Industries that form this sector, Diamond Jewelry and Hotels are having strength. Stocks in this industry can be checked good entries which will reap good returns. But the stock charts also should have similar strength like their Sector chart. Titan, Indian Hotel etc., are stocks which can be looked at.
Telecommunications is one sector which has been lagging the total market for the past many months. Though charts show bullish patterns, the sector as whole is not moving up.
Days of big money in the markets are over. With Institutions starting to churn their portfolios and large investors in the verge of liquidating positions (if they have not already done so when the right signals emerged), traders do not have big time opportunities like we had in 2009. Still there would be gains available, for which we have to do strong research.
Larger timeframes show signals for a side ways move. If monthly and weekly charts go sideways, then Daily or intraday does not have much space to move around. The ball which went sky high, pitched down, took a decent bounce not able to go beyond previous high, has now started to settle down. As the pitch was very strong, the bounce too was relatively good. Now the steam is out, it will roll down a bit before gathering any wind to move in either direction.
We sat back and watched our portfolios churning out money, now it is time to enjoy the booty. Sit aside and watch the market play its lessons on those who have lost the opportunity to exit at right levels. Those who are smart win all along, while the lazy are the ones who bear all the brunt.
While watching the game going on, lets do our research with more sharp view and find some really good stocks or wait for the right moment to jump into a big move.
Happy holidays, fellow investors.