The energy sector drops off a cliff while technology zooms ahead

Stock-compass.com analyzes the relative strength of the top 25 stock market sectors by comparing them to the S&P 500. The energy sector crashed by 11.1% during January. Stocks that represent or have a lot to do with certain commodities tend to move in advance of those commodities. This dramatic fall suggests a coming drop in the price of crude oil, gasoline and heating oil. Natural gas is already at a very low price due to the glut caused by new drilling techniques.

Within the overall technology sector every sub sector gained with the sole exception of telecommunications. Technology hardware was the lowest at a still impressive 3.2%, bio-technology gained 5.9%, computer software gained 6.2, and semiconductors zoomed up by 7%. Combine this with the 2.1% rise in the capital goods sector (it had been languishing for months) suggests that the economy is performing better than most people think.

Put in your name and email for our
free weekly stock newsletter

You'll get:

* Weekly Emailed Stock Market Analysis

* Trading Educational Tips - once or twice a week

email

name 

  • Every trader, no matter how good, has losses.

     

    The only ones that don’t are Ponzi schemes.

  • What kind of results will I get?

     

    You’ll get more wins than losses and average gains bigger than losses.

  • But, you need more than just good trades!

     

    Too much risk leads to disastrous losses.

    Geometrically increase your results with the correct use of risk.

  • How do I get started?

     

    Click subscribe (on the menu) and make a selection.

    Submit and you’re set to go once you receive a return email.