The consumer is alive, technology and oil are playing dead. That’s what we found in this week’s review of industry charts. The sectors with charts delivering buy signals include:
Consumer Electronics
Consumer Goods
Recreation
Household Goods
Nondurable Household Goods
& Furnishings.
To take advantage of this emerging trend, investors can add iShares US Consumer Goods Index Fund (IYK). More aggressive investors wanting more juice will want to own ProShares Ultra Consumer Goods (UCC). Its objective is to deliver 2 times the performance of the Dow Consumer Goods Index.
On the downside, oil and tech charts are starting to cough and wheeze. Both industries have had negative MACD cross-unders above zero, usually a reliable sell signal. The sectors we would be wary of are :
Basic Materials
Coal
Computer Hardware
US Telecom
Oil & Gas
Non Ferrous Metals
Integrated Oil & Gas
US Exploration Technology
& Tech Hardware.
Short investors with some guts can own ProShares Short Oil & Gas (DDG), and those with stomach of brass, ProShares Ultra Short Oil & Gas (DUG) for double the fun. For tech, ProShares Ultra Technology (REW) will keep you on the edge of your seat with 2x the performance of the Dow Technology Index.
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