Archive of Previous Issues

Sector

18Feb06 to
18Aug06

Week of 
18Aug06

Visual Chartist Commentary

Tobacco

+18.82%

Continues to perform strongly. All favorable news about court decisions merely reflect earlier technical strength.

Back up to the May highs. Very little of interest here. 

Holding on for dear life. The potentially ominous head-and-shoulders formation continues to add caution to this sector. Stocks need to rally strongly up through their overhead resistance, clearing the way for additional gains into the end of the year. Otherwise, weakness will bring in a rash of selling because we are nearing an inflection point for this sector.

Comfortably above support but few stocks offer much in the way of profit potential.

Very similar charts to the Metals & Mining sector. Needless to say, they live in the same realm of natural resources. This sector also needs a strong rally to negate the potentially ominous head-and-shoulders formation that continues to do its work. Plenty of congestion for both of these long-time market leaders.

Like watching grass grow. Strong stocks are extended well above support. 

Tested previous March highs and backed off. Otherwise, nothing worthy of mention here.

If it weren't for the foreign car makers, this sector would be sucking gas.

A few percentage points more and this sector breaks out into a new 3-year high. However, many stocks have to do a lot of work to do to get themselves into a good-looking pattern. Warrants constant watching.

Also right on the cusp of breaking into 3-year new high ground. Plenty of potential here, enough to conceivably cure a sick portfolio. Stocks are all over the place. Some extended well above support, others retreating back toward support. Still others trying to get above resistance. Definitely, a sector that offers promise.

The problem here is lack of volatility. And lack of volatility negates any worthwhile call options with enough meat to sell.

Also, the dull, the boring, and the low-volatility.

Last week we said it had to go now or else... So it went. The Generals are back in the lead and the Soldiers are trying to catch up. We really need a decisive upward move this week to clear away the congestion. Otherwise, it falls back into the mush. The spotlight is on the big caps to see if they can carry through. Any hesitation will be met with renewed selling.

Looking better. Another sector with lots of potential and definitely worth keeping an eye on. 

Big stocks with low volatility.

Some of the good mixed in with a lot of the bad. The sector is too weak to excite much interest.

Chemicals 

Finally came to life after a disastrous summer. Too little too late? A very few good-looking stocks mixed in with many weak ones. Forget it.

Part of the high-tech explosion this week. A few more weeks like this and we can party like it's 1999 again. Plenty of stocks and calls getting themselves into the "potentials" category, provided the sector can climb up in the standings. Must have Electronics and Hardware along for the ride to make it real.

Too much overhead resistance here for serious consideration.

Also has a lot of overhead resistance.

Not as bad looking as Retail, but not much to look at either. 

Definitely in a downtrend, about halfway between lower support and the May highs. A lot of damage has been done. Must work to repair weak charts. That could take some time. With the exception of Shipping, most industries are sinking.

Has dropped down to support, based, and is now trying to mount another rally. This sector contains a very mixed bag of assorted investments. Perhaps the whole world will become an ETF..eventually.

Disappointment hangs over this sector today. It was just getting up a good head of steam, climbing higher, then ran into overhead resistance...and stopped. Plenty of interesting stocks here if the sector can get its act together and continue onward.

Dropped all the way down to support. Now, trying to mount a new offensive to overcome resistance. Not much going on.

A healthy shakeout. Now that the various areas are down to or close to support, we will watch whether they can regroup and turn around.

Another sector that has seen better days. Down to supports. And as above, it must regroup and turn around if it is to regain former glory.

All areas have suffered significant damage. This uptick could be construed as merely a short-covering rally. Or, it could be the beginning of something more meaningful. It all depends on whether the sector can keep it together or fall apart again in the next few weeks.

A violent upsurge regaining about half of this year's selloff. All areas have significant overhead resistance that could squash higher prices.

Can't get anything moving here. Pass on it.

Plenty of overhead resistance. T'was a nice rally, but let's not hold our breath for the beginning of a new uptrend. In time, things could work their way higher. But in the mean time, we must wait for further strength.

Any meaningful rally is still some time away. The sector may very well be putting in a bottom, but it has a lot of work to do before it will attract our attention again. It was a good ride while it lasted, but all good things must come to an end.