Stock Market - Sector: Brewing Up Buy Signals

Submitted By The Correct Call

This stock market is death defying. There is bad news all around, with a few exceptions, and stocks take off. As a result of yesterday’s rally, our momentum indicator turned the buy light back on. It joined our leadership model that posted the same buy signal on Friday. One word of caution, the pendulum for both is barely over the center line, so a minor setback in stock prices could push both back into the dark-side.

This week we find two sectors that made both our top performing sector list and produced new buy signals on their stock charts; they are Electronic Office Equipment stocks and Brewer stocks. As a Cubs fan we hate to see the Brewers so hot when our Cubs are sooooo cold. We will be digging through these two sectors and all the top performers looking for some stocks that are worthy of your investable dollars.

Here are the past week’s top and worst performing sectors:

Performance versus the S&P 500
Rank	Industry	% Return +/- the S&P	% up/down
1	METALS-NON FERROUS	7.51%	4.83 %
2	CONTAINERS & GLASS	7.31%	4.63%
3	ALTERNATE ENERGY SOURCES	5.81%	3.17%
4	AEROSPACE-DEFENSE	5.60%	2.97%
5	SEMICONDUCTORS	4.24%	1.63%
6	COMPUTER-OFFICE EQUIPMENT	3.82%	1.23%

Here are the week’s poorest performing industries:

Performance versus the S&P 500
Rank	Industry	% Return +/- the S&P	% up/down
59 of 59	LEISURE SERVICE	-7.94%	-12.53%
58	CONSTRUCTION-BUILDING SERVICES	-1.35%	-3.81%
57	CONS PROD-MISC STAPLES	-0.97%	-3.44%
56	FOOD/DRUG-RETAIL/WHOLESALE	-0.23%	-2.72%
55	MACHINERY-ELECTRICAL	-0.20%	-2.69%
54	INSURANCE	-0.18%	-2.67%

The week’s new buy signals include:

Brewer Stocks
Electronic Office Equipment Stocks
Healthcare Stocks

The week’s sell signals are:

Consumer Services Stocks
Medical Supplies Stocks
Home Construction Stocks
Software Stocks
Transportation Stocks

Transportation stocks would frighten us for a while. The cost of fuel is on the rise again (with no George Bush to blame) and the economy is still in the tank. Costs going up while demand is down is a bad, real bad, equation for earnings. We will look under the hood to see if there are any worthy short or put option candidates here.

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