|
In the main article, we showed our concerns with the relative strength and price trends of transportation stocks. A similar situation exists in the charts of technology software & services stocks. The good news is a favorable relative strength trend versus the general stock market.
Software & Services Stocks - Relative Strength (1989-2008)
The bad news is weak trends in the price of the stocks. Notice the firm break of the uptrend from 1991 to 2007 in these software and services stocks (see below). Theses charts tell us even the stocks of stronger industry groups are falling in price. The stronger stocks are simply losing less than the weaker stocks.
Software & Services Stocks - Price (1989-2008)
You would expect the charts to be weak in a devastating bear market, but you would also expect to see some improvement as the market turns. The following industry groups all have respectable relative strength, but negative price trends.
Food, Beverage & Tobacco: Good News Relative Strength Trend
Food, Beverage & Tobacco: Bad News Price Trend
Food & Drug Retailing: Good News Relative Strength Trend
Food & Drug Retailing: Bad News Price Trend
Household & Personal Products: Good News Relative Strength Trend
Household & Personal Products: Bad News Price Trend
Hotels, Restaurants & Leisure: Good News Relative Strength Trend
Hotels, Restaurants & Leisure: Bad News Price Trend
Pharmaceutical & Biotechnology: Good News Relative Strength Trend
Pharmaceutical & Biotechnology: Bad News Price Trend
Utilities: Good News Relative Strength Trend
Utilities: Bad News Price Trend
Technology Hardware & Equipment: Good News Relative Strength Trend
Technology Hardware & Equipment: Bad News Price Trend
Moderately Good News and Bad News
The following industry groups have a mixed bag in terms of relative strength. Unfortunately, we see nothing to get excited about in terms of price action. Banks have shown some improvement in relative strength, but no decisive breakout to the upside.
Banks: Relative Strength Trend
Share prices of banks continue to suffer.
Banks: Price Trend
Energy stocks have managed to stay within a basic upward sloping trend channel in terms of relative strength.
Energy: Relative Strength Trend
The story in terms of price for energy stocks remains concerning. The trend remains firmly down and includes the potential for more downside.
Energy: Price Trend
Commercial Services & Supplies: Moderately Good News - Relative Strength (in 2008)
Commercial Services & Supplies: Bad News Price Trend
Retailing: Moderately Good News - Relative Strength (in 2008)
Retailing: Bad News Price Trend
The Bad News and The Bad News
Automobiles, financials, capital goods, insurance, consumer durables, and materials all have negative relative strength trends and negative price trends. From an economic standpoint, weakness in these industry groups is not bullish for the general stock market.
Automobiles: Bad News - Relative Strength Trends
Automobiles: Bad News Price Trends
Financials: Bad News - Relative Strength Trends
Financials: Bad News Price Trends
Capital Goods: Bad News - Relative Strength Trends
Capital Goods: Bad News Price Trends
Insurance: Bad News - Relative Strength Trends
Insurance: Bad News Price Trends
Consumer Durables: Bad News - Relative Strength Trends
Consumer Durables: Bad News Price Trends
Materials: Bad News - Relative Strength Trends
Materials: Bad News Price Trends
Return to Main Article
Ciovacco Capital Home
All material presented herein is believed to be reliable but we cannot attest to its accuracy. The information contained herein (including historical prices or values) has been obtained from sources that Ciovacco Capital Management (CCM) considers to be reliable; however, CCM makes any representation as to, or accepts any responsibility or liability for, the accuracy or completeness of the information contained herein or any decision made or action taken by you or any third party in reliance upon the data. Some results are derived using historical estimations from available data. Investment recommendations may change and readers are urged to check with tax advisors before making any investment decisions. Opinions expressed in these reports may change without prior notice. This memorandum is based on information available to the public. No representation is made that it is accurate or complete. This memorandum is not an offer to buy or sell or a solicitation of an offer to buy or sell the securities mentioned. The investments discussed or recommended in this report may be unsuitable for investors depending on their specific investment objectives and financial position. Past performance is not necessarily a guide to future performance. The price or value of the investments to which this report relates, either directly or indirectly, may fall or rise against the interest of investors. All prices and yields contained in this report are subject to change without notice. This information is based on hypothetical assumptions and is intended for illustrative purposes only. PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS.
|