Sector Spotlight: Healthcare and Energy VS Financials and Consumer Discretionary $XLV, $XLE, $XLF, $XLY

• Posted by DynamicHedge
• on June 5th, 2011

Last week was the sixth consecutive week of lower trading on the market.  The selling was enthusiastic and broad based, with only a few oil service names staying in positive territory.  I was bearish but I’m thinking we could see some strength.  The market has yet to give any clear signals, but I like the odds of a bounce from these levels.  The sky is not falling.  The world is not ending.  The end of American exceptionalism may be drawing closer but it is not here yet.

If the market can’t find footing here, we could test the $SPX 1250 level and rally from there.

Winners: $BHI, $NOV, $SLB, $HAL, $PFE, $UNH

Losers: $DIS, $NKE, $TGT, $WFC, $MET, $COF

The most gamed economic event of the month has come and gone and there’s nothing heavy on the economic calendar for the week ahead.  Trading will be very light.

Keep in mind the big picture: we are in year three of an epic bull market that no one believes in.  The market has not yet seen it’s all time highs.  If you think you can predict that event will come, you are psychotic.

Winners (if you can even call them that):

Biggest Losers:

Bonus: Breathless Drudge headline from June 1:

If “Economic ‘Horror'” in a headline isn’t extreme negative sentiment I don’t know what is.

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