Sector Update

The chart above published by Bespoke Investment Group shows the percentage of stocks in each S&P 500 sector that are trading above their 50 day moving average.  The obvious laggard here is energy, reflecting the steep decline in oil prices this fall.  The other thing to note here is that when 82% of the S&P 500 stocks are trading above their 50 day moving average then the market is over bought at least in the short term.

Much has been made about the windfall to consumers of falling gasoline prices stemming from the decline in oil.  I normally don't pay much attention to the price of gasoline in regards to consumers because the 20-40 cent price variance that we've mostly seen in the past few years I don't think matters too much in the big picture.  On a personal level we don't drive that much so the usual small changes aren't that noticeable to my pocket book.  But I couldn't help but notice that gas cracked the $3.00 level for the first time here this week and I'm likely paying a dollar to 65 cents less for gas than I was a year ago.  That IS a big deal to folks when your saving 10-15 dollars each time you fill up.

*Each of these sectors above is represented in some strategy of our investments for clients.

Link:  Bespoke: #EBE

Posting schedule next week will be light due to Thanksgiving.  Expect something here Monday-Wednesday and then we'll be back the following week.