The consumer staples sector was 11.7% overvalued at the end of July and is 10.2% overvalued today.
My benchmark for this sector is the Consumer Staples Select Sector SPDR (XLP), and its daily chart profile also shows overbought momentum. With XLP, we show that Tuesday was the "key reversal" day where the day's close was below Monday's low after setting a new multiyear high. On Aug. 6 I wrote "Book Profits in Overvalued Consumer Staples." XLP ($35.68) is trading between my annual and semiannual value levels at $32.87 and $31.34, respectively, and my monthly and quarterly risky levels at $36.06 and $37.64, respectively.
The oils-energy sector was 9.2% undervalued at the end of July and is 1.4% undervalued today. My benchmark for this sector is the Energy Select Sector SPDR (XLE), and its daily chart profile shows overbought momentum. On Aug. 1 I provided guidelines for Trading the Undervalued Energy Sector." XLE ($72.09) is above my monthly value level at $68.46, and this week's risky level is at $75.76.
The finance sector was 4.8% overvalued at the end of July and is 9.3% overvalued today. My benchmark for this sector is the Finance Select Sector SPDR Fund (XLF), and its daily chart profile shows overbought momentum. On Aug. 15 I wrote "Time to Book Profits in Financial Stocks: Opinion." XLF ($15.22) is below quarterly and annual risky levels at $15.50 and $15.59, respectively, but I do not show a nearby value level.The medical sector was 8.1% overvalued at the end of July and is 5.9% overvalued today. My benchmark for this sector is the Health Care Select Sector SPDR Fund (XLV), and its daily chart profile shows declining momentum. On Aug. 8 I wrote "Book Profits on Health Care Stocks." XLV ($38.43) is above my annual value levels at $36.71 and $34.12, respectively. My monthly and quarterly risky levels are at $40.06 and $40.83, respectively. The utilities sector was 12.9% undervalued at the end of July and is 14.6% overvalued today. My benchmark for this sector is the Utilities Select Sector SPDR (XLU), and its daily chart profile shows oversold momentum with the ETF below its 50-dey simple moving average at $37.17. On July 30 I wrote that investors should "Consider Taking Profits on Utility Stocks," and the high on Aug. 1 was $38.54. XLU ($36.89) is trading around my monthly pivot at $37.00. The 200-day simple moving average is $35.61, and the quarterly and annual risky levels are $39.89 and $43.70, respectively.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV