How To Take Advantage Of Recent Moves In U.S. Sector Strength

21 Agu 2023

Hey guys! In this post, we'll be breaking down our Sector Strength readings for the most recent week, along with the best way to take advantage of how the markets are currently moving.

First, here are the most recent readings:



Here's our take:

Strength across all sectors weakened this last week as the market sold off broadly, ruining momentum and causing some changes to the standings.

The notable exclusion to this trend was Energy, which still reads a '+3' momentum score and a '+5' overall score, which is highly impressive.

We expect this stability to continue, especially as we begin heading into a cold winter season.

Notable moves occurred in Building Materials, Consumer Defensives, and Financials, as combined scores dropped 4 points in these sectors.

Given that Macros are improving, and that we see a market rebound in the short-term cards, it would appear that Energy and Industrials are the two best places to be in the market, while Consumer Defensive and Utilities will likely lag more EPS-responsive sectors during a rally.

Let us know if you have any questions in the comments below. Cheers!


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