The market timer continues to tick towards 180 days from the March low and momentum is weak in a slightly oversold situation. I really can’t add much that I have not been posting for the past month. I decided to look a which industries are in the best position relative to their three year price high. I flipped through the best charts and found the following as the strongest long term industries. I am not recommending to buy anything from these industries as I am not bullish on the market. But as people start to short the upcoming weakness, I do suggest avoiding shorting stocks associated with these industries.
Do not spend too much time analyzing “why” I placed the Gann Fans as I did. Remember, the fan is a tool to measure relative strength over time. While it makes sense to place the 1×1 angle to hit significant highs and lows, it is not necessary for the fan to be useful.
It appears people are going back to school and drinking a lot of beer.
I would be careful with automobile related companies as their fate is completely in the governments hands. And government changes it’s mind all the time. I think the autos may trade like biotechs for many years.
The discount stores should continue to draw share from the high end businesses.
Health related industries are doing well in spite of the unknown future of government policies.
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