Commentary
Sector Watch


Play of the Day
Current Plays
Watch List
New Plays
Play Updates
Drops


Announcements
Current Split Catalog
New Candidates
Candidates Index
Expected Splits
Splits 101


Play Results
Split Predictions


Ask the Trader
Trading 101
Bookstore
Glossary
Dow Charts
FAQ


Splits
SEC Filings
Coming Economic Events
BoD Meetings
Earnings


Chat Room
Message Boards


Email Newsletter
Author Search
Advertise With Us
Change Password
Contact Us

Sector Watch, Tuesday, 03/27/2001

No alerts were triggered Tuesday, but 12 sectors have moved up one notch. This puts 16 of the 21 sectors we monitor right in the middle position of their posture. BTK has joined the SOX as the closest sectors to resistance, and the OIX and NWX are the slowest to move off support.

Broad Market Sym Last Support Posture Resistance Alert
Dow Jones 30 DOW 9,948 9,050 10,900  
S&P 500 SPX 1,182 1,050 1,270  
NASD Comp COMPX 1,972 1,750 2,280  
S&P 100 OEX 606 545 660  
Russell 2000 RUT 453 415 500  
NASD 100 NDX 1,736 1,550 2,050  
High Tech MSH 580 515 645  
Technology Sym Last Support Posture Resistance Alert
Biotech BTK 474 360 525  
Hardware XCI 801 710 890  
Software GSO 196 170 235  
Semiconductor SOX 622 515 670  
Networking NWX 480 445 585  
Internet INX 166 140 200  
Finance Sym Last Support Posture Resistance Alert
Banking BIX 629 545 660  
Brokerage XBD 469 415 555  
Insurance IUX 704 645 780  
Other Sym Last Support Posture Resistance Alert
Retail RLX 848 770 915  
Drug DRG 378 335 425  
Healthcare HCX 779 700 850  
Airline XAL 141 118 157  
Oil & Gas OIX 309 296 335  

Sector Watch Description

The Sector Watch is a tool that has been designed to give you a snapshot glance of where the major market sector and indices are headed. The goal is for a visual representation within a specific area to help in gauging future movement. The description of each column is as follows.

SYM - This is the symbol that many charting services use for the corresponding sector.

LAST - Last trade value for the corresponding sector at 4:00 EST on the day (upper right corner) of the report.

SUPPORT - A level over the past three weeks where demand has been greater than or equal to supply. If this level were broken it could signal a bearish tone toward the sector/group. When support areas are broken, we then look for what could be the next level of support for that particular sector.

POSTURE - A graphical representation of a particular range that a sector is trading in. Traders should monitor this area against previous reports. Those sectors showing increasing demand should be moving from support to resistance. Conversely, those sectors where supply is greater should be moving down from resistance to support.

RESISTANCE - A level where supply has been greater than or equal to demand. If this level were broken it could signal a bullish tone toward the sector/group. When resistance areas are broken, we then look for what could be the next level of resistance for that particular group.

ALERT - A notification to traders that a previous level of support or resistance was broken and that action may be warranted.

This tool can be useful for bullish and bearish traders. When you've identified a sector that is of interest to you, you can then concentrate on stocks within that sector, thus making for a more focused and alert trader.

We realize that there are different kinds of bullish traders. There are those that like to buy stocks on pullbacks and those that prefer to buy "momentum", stocks that are breaking out of consolidation or to new highs. Whichever strategy you are most comfortable with, the Sector Watch will help you quickly identify the level, within a trading range, where a particular sector is trading.

A bullish trader that prefers to buy "strong stocks" on pullbacks would be most likely to concentrate on a sector they have identified as having a bullish trend, that is currently trading in the lower half of the trading range and closer to a level of support. A bullish trader that prefers to buy "strong stocks" with momentum would focus on those sectors that have been in up-trends, and are trading near key resistance levels, where a significant breakout may occur.

Bearish traders can also benefit from this tool when determining levels at which to sell. There are two types of bearish traders. There are those that attempt to sell rallies and those that sell when a level of support has been broken.

Understanding risk is a concept that many traders and investors have trouble with. Not all sectors consistently move between support and resistance levels. At given times, sectors may tend to stay in the upper half of trading ranges, while others are stuck in a lower range. If you're bullish or bearish on a particular sector, you can use support/resistance levels to help assess and manage risk by implementing the use of stops below/above those levels.

 


Copyright 2001 SplitTrader.com

Do not duplicate or redistribute in any form.
Privacy Statement   Disclaimer   Terms Of Service