The above chart represents a system I’ve developed for rating the various sectors and significant sub-sectors in the Australian market. It combines traditional ratio analysis and a 20-Day Rate of Change.
The three highest rated S&P Sectors are Materials, Health and Energy. A suggestion is to buy strong blue chip stocks in these sectors on any pull-back.
Blue Chip Stocks with an RSI currently above 60 in each of these three sectors are:
Materials: BHP, Bluescope Steel, Rio Tinto
Health: CSL, Sonic Health Care
Energy: Origin Energy, Oil Search, Worley Parsons.
These are not tips. Just observations. DYOR. Remember, any decision to invest or trade on the stock market is your decision. DYOR
The slugs are Consumer Staples and Consumer Discretionary. Contrarians would, of course, be looking to those two sectors first. (Being lumbered with a dual personality, I often sit on both sides of the fence, e.g., I’m looking with lust at Woolworths, one of the slugs, but until she puts on her party dress and yells “Let’s Boogie”, I’ll just continue leering.)
Good luck
Red
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