Sector Buy/Sell Signals - Week of January 20, 2020
With the exception of the energy sector, momentum signals confirm that the bulls are in control almost across the board. Small-caps have trailed large-caps for a while now, but the current rally is finally putting the Russell 2000 within shouting distance of its all-time high last reached in mid-2018.
The story is the same in the international equity markets. Developed markets have posted gains, but the real strength lies in emerging markets where (up until recently) the weaker dollar, signs of an economic bottom and accommodative central banks have fueled optimism.
Treasuries have mostly been moving sideways lately, but the technical indicators still look alright. Corporate bonds continue to look a little better than Treasuries as investors remain firmly in the risk-on camp. High yield bonds, despite some of their structural deficiencies are still a target of income seekers.
Precious metals are also looking good here. Gold and silver both survived modest price drops recently and appear to have resumed their recent climbs. Gold's push towards $1600 may be a slow march ahead, but I believe it will still get there in the next month or so.
Here is the full scorecard for the week ahead.