A Look at Two Key Sectors as Markets Quiet Down
Markets have really quieted down as we get into the meat of December. That’s a plus for the bulls as the bears finally have some things on their side of the ledger to cling to. After such an amazingly powerful rally, the longer the bulls can hold off any meaningful pullback in stocks, the more likely the market will resolve itself higher sooner than later. As I have mentioned, we have a seasonal headwind for another week or two and then it turns strongly to a tailwind into January.
I haven’t posted my key four sectors in a while so let’s look at some.
Semiconductors are one group that is always on my radar screen. It seems like we are always adding or cutting to our position size. I expect semis to exceed their 2023 highs over the coming few months, but all-time highs remain farther away as you can see in the lower chart which is weekly instead of daily.
Banks are another key group and they have been under a lot of fire this year although most has been during the first half of the year.
The first chart shows the action this year. Since the collapse in Q1 banks have been building a foundation and establishing a base to launch higher in 2024.
The second chart is a weekly one where you can see the huge swings the sector has seen since 2020.
On Monday we sold PMPIX and some ITB and some XRT.
