I’ve covered a few stocks and sectors that look to be emerging from “dog-hood” in the past couple of weeks. Here and here are the blogs. The stocks and sectors covered in those blogs were presented as potentially emerging opportunities.
Today, I’d like to look at a few sectors that are perhaps best avoided, at least until they show signs of technical improvement. I won’t do a write-up on the sectors—instead, I think my trendlines will deliver the message loud and clear. Note that my first chart- that of US utilities, is not officially bearish. I merely note that it is challenging a wall of resistance formed in 2014 – after a period of strong performance. That may be a consideration for those contemplating on new positions in the sector. The Canadian utilities face a similar situation. Here we go with my list of “best to avoid” sectors:
Paper Products ($DJUSPP)
Keith on BNN today: Monday May 30, 1:00pm
I’m doing the afternoon show today- Monday May 30th from 1:00PM – 2:00PM. Call in with questions during the show’s live taping between 1:00 and 2:00 pm. The toll free number for questions is 1 855 326 6266.