Last weekend, in my Sector Watch, I mentioned that XLF is not looking too healthy. XLF closed the week below $30, although it did make a good bounce on Friday. A continued rally above $30 would get it above its 10-day MA. We’ll have to watch this sector closely. GS and MA are still among my favorite plays in this sector.
INX2 has been weak for about 3 weeks now. This week, GOOG made a good comeback, adding more than $40. The holiday shopping seacon has also just started. Some attention may come back to online retailers. AMZN, for instance, was pretty solid all week.
Last weekend, I said, “USOâ€™s chart is looking strong again.” This week, it jumped +3.87%! It looks like USO can still go higher. It is trying to catch its daily upper BB and start a new leg up. The 10-day MA is above the 20- and above the 30-day MA, a bullish formation.
OIH (oil services)
As the oil prices rise, oil services are getting buying attention also. OIH made a solid advance this week, adding more than $5. RIG is completing its merger with GSF, and it’s looking to go higher!
GLD was strong this week, adding +4.5%. It has risen again above its daily MAs. As 12/11 draws near, with the possibility of another rate cut, it seems that investors are buying up gold again. GLD could be looking to start a new leg up.
XME (metals and mining)
XME also had a good week. If GLD is rising, it’ll be interesting to see if XME can also catch some strength. It closed the week above its 10-day MA. BHP, RTP, ATI, FCX, PCU are some of the movers on my watchlist.
Hope you’re enjoying your weekend!