Weekly Market Composition — April 21

We’ve seen a yo-yo effect between consumer goods stocks and basic materials in the last several weeks.  When the market is up basic materials are ripping.  When we get downticks, defensive consumer goods stocks get bid up.  Basic materials (HAL, BHI, FCX) and healthcare (JNJ, UNH) dominated the bullish trade this week.  Financials (BAC, WFC, BK, USB, GS) continue to be a drag on the market.

I’m keeping an eye on some strength in insurance (MET, ALL) and select financials (V, COF).  Even though they have not broken down, I’m still very cautious on anything tied to retail or the consumer (PG, HD, HNZ, KFT).

The market continues to climb the wall of worry and feast on the black swan musings of financial blogs worldwide.



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