October 19, 2021, 2:09 pm EDT
Looking for the Leadership
The stock market has been strong since the beginning of October where it bounced from the weak September. Thus, we are looking for the leadership to pave the way for the new path or new record highs.
Today the leading sectors are healthcare (as shown), utilities, energy, and technology. One-week leaders are Consumer discretionary, technology, and materials. One-month leading sector belongs to the energy sector. Details are available at Sector Bar Chart.
Individually, we can see new highs from the mega tech like TSLA, MSFT.
But, it is hard to identify the new offensive leaders from the technology and consumer discretionary areas.
Traditional energy (oil), renewable energy (solar, fuel cell), electrical energy (cars, battery), and materials still dominate the leadership from the performance perspective for the past few weeks.
The lack of offensive leaders is a signal to remind us to be cautious rather than excited when the new highs are inches away. If the new leaders emerge when indexes make a new high, we should be able to identify them. Meantime, let’s keep watching the development.