The S&P500 index was up 2.0% last week and closed at 326.5; we look for oversold, up moving momentum sectors or overbought down moving momentum sectors.
On the right-hand side are the SPDRs ETFs representing the various sectors.
The left heatmap displays the Momentum with red for weak momentum and blue for strong momentum sectors, the right heatmap displays the overbought/oversold status for the same sector with red representing overbought and blue oversold.
Here are the momentum and overbought/oversold analysis for this week :
As usual, we are looking for sectors that are picking up on momentum while oversold.
The software and services sector (XSW) is picking up momentum and is not yet oversold so it represents a good opportunity to go long, so is the Health Care Equipment (XHE) and the Aerospace and defense (XAR).
The real jewel of the week is the Oil and Gas sector (XOP) which has finished correction and is ready for the next leg up, specific picks in that sector may be found in our trade alerts page
Specific stocks in these sectors may be found in our detailed alerts and stock picks service)
AlphaOverBeta Trades
We have a number of specific stock picks in the above sectors described in our website,
You may find all of AlphaOverBeta trades in the Real Time Trading Updates of our website
Trade Safely,
Alon