Weakness in the retail sector mirrors the economy

The other main reason for the 6.7% loss in the retail sector is the now 16 million (i.e., up from 15 million in the past year) adults that are no longer part of the workforce. McDonald’s decision to replace cashiers with robot kiosks will kill thousands of jobs and put many of these people eventually added to the 15 million mentioned above.

The Technology Group lost strength due to a 4.7% loss in the Telecommunications Sector and a 3% loss in Technology Hardware. This was largely offset by a 6.8% gain in the Bio-Technology Sector. Gains in some of the other sectors are suspect. An example is the Auto Sector. It gained 4.3%. But there is a soon-to-come avalanche of formerly leased cars to be added to the amount of used cars. There is already a very big over supply of used cars and is bound to continue to push down prices of used cars. But, new car prices will suffer as well.

Here is the chart of the relative-strength Retail Sector:

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