Edition 0019. 06.12.2022. Week of 06.06 - 06.12.2022.
This weekly commentary examines all 11 S&P sectors. We first analyze the large cap sectors in depth. Then we check in on the mid and small-cap spaces.
Key Takeaways
Last week all 11 sectors in the small, mid, and large-cap spaces closed lower.
We continue to see more market cap trending downwards than upwards.
We continue to see more market cap making new lows than new highs.
Several sectors have given back their YTD gains leaving energy with YTD gains across the cap scale as well as utilities in the large and mid-cap space.
Large-Cap Leadership
S&P 500 Equally Weighted ETF (RSP) / S&P 500 Cap Weighted ETF (SPY). Click to enlarge.
RSP has been outperforming SPY for the last 6 months. The relationship is at a key level. How it resolves will speak to relative strength moving forward.
Large-Cap Sector Relative Strength
Sector Performance Table. Sorted using our proprietary relative strength ranking: E.C.C. RS.
Click here for the performance table guide. Click the performance table to enlarge.
Larger numbers means more relative strength. Current as of 06/12/2022.
Energy, RYE and XLE, have the strongest rating.
Behind energy is utilities, RYU and XLU.
Behind utilities is staples, RHS and XLP.
Cap-Weighted Sector performance sorted by one-week rate-of-change.
Click here for the performance table guide. Click the performance table to enlarge.
Last week 0 of the 11 sectors closed with a gain.
6 sectors - XLE, XLP, XLV, XLU, XLC, and XLI - outperformed SPY.
There were more ranked lows than highs.
XLC, XLRE, and XLF closed at 52-week lows. XLV and XLB closed at 13-week lows. XLU printed a 5-week closing low.
On average, the group is 20 weeks and 18.25% below their last 52-week closing high.
From a quantitative perspective, XLE is in an uptrend with confirming momentum while XLU is in an uptrend without confirmation from momentum.
Year-to-date sector and SPY performance.
Click to enlarge.
Year-to-date, XLE continues well ahead of the pack with a 60% gain. XLU has closed below the 0 line and given back all of its year-to-date gains. All of the other sectors are negative. XLY remains the YTD laggard.
Equally-Weighted Sector performance sorted by one-week rate-of-change.
Click here for the performance table guide. Click the performance table to enlarge.
Last week 0 of the 11 sectors closed with a gain.
5 sectors – RHS, RYE, RYH, EWCO, and RYU - outperformed SPY.
There were more ranked lows than highs.
RYH, EWCO, RYT, RYF, and EWRE closed at 52-week lows. RTM closed at a 13-week low. RYU printed a 5-week closing low.
On average, the group is 22 weeks and 16.75% below their last 52-week closing high.
From a quantitative perspective, RYE is in an uptrend with confirming momentum while RYU is in an uptrend without confirmation from momentum. RTM remains in a range with neutral momentum.
Year-to-date sector and RSP performance.
Click to enlarge.
Year-to-date, RYE continues well ahead of the pack with a 62.25% gain. RHU is still above 0 with a 2.5% gain YTD despite closing lower for the last 2 weeks. RHS and RTM have both closed below the 0 line and given back all of their YTD gains. RCD remains the YTD laggard.
Sector Charts!
Cyclical sectors: sectors that tend to lead as the economy expands and lag as
the economy contracts.
Consumer Discretionary: XLY & RCD. Click to enlarge.
Financials: XLF & RYF. Click to enlarge.
Materials: XLB & RTM. Click to enlarge.
Real Estate: XLRE & EWRE. Click to enlarge.
Defensive sectors: sectors that provide goods & services that people require
in both economic expansions and contractions.
Consumer Staples: XLP & RHS. Click to enlarge.
Health Care: XLV & RYH. Click to enlarge.
Utilities: XLU & RYU. Click to enlarge.
Sensitive sectors: sectors that rise and fall with the general economy, but at
the same time have a sensitivity to additional factors.
Communication Services: XLC & EWCO. Click to enlarge.
Energy: XLE & RYE. Click to enlarge.
Industrials: XLI & RGI. Click to enlarge.
Technology: XLK & RYT. Click to enlarge.
Large-Cap Sector Summary Table
Click to enlarge.
Current weightings sources. Cap Weighted: https://www.sectorspdr.com/sectorspdr/
Equally Weighted: https://www.invesco.com/us/financial-products/etfs/product-detail?audienceType=Investor&ticker=RSP
In the cap weighted space, there is more market cap in downtrends than uptrends.
In the cap weighted space, there is more market cap making new lows than new highs.
In the cap weighted space, XLU and XLE are in uptrends.
In the cap weighted space, XLB, XLP, and XLV are rangebound.
In the cap weighted space, XLY, XLF, XLRE, XLC, XLI, and XLK are in downtrends.
In the equally weighted space, there is more market cap in downtrends than uptrends.
In the equally weighted space, there is more market cap making new lows than new highs.
In the equally weighted space, RYE is in an uptrend.
In the equally weighted space, RTM, RHS, and RYU are rangebound.
In the equally weighted space, RCD, RYF, EWRE, RYH, EWCO, RGI, and RYT are in downtrends.
Weighted Sectors Across The Cap Scale
& Equally Weighted Large Caps
This table is sorted by Year-to-Date performance.
Click here for the performance table guide. Click the performance table to enlarge.
Every single sector across the cap scale closed lower last week. Small-caps were the best of the worst, while equally weighted large-caps led the losses. Across the cap-scale, price printed more ranked closing highs than lows.
YTD the equally weighted large-caps are the best of the worst while the cap-weighted large-caps are the worst of the worst.
In the mid-cap space, 4 sectors printed 52-week closing lows and 1 sector printed a 13-week closing low. YTD we see massive gains from energy with a small gain from utilities. Materials has given back its YTD gains.
In the equally weighted large-cap space, 3 sectors printed 52-week closing lows, 2 sectors printed 13 week closing lows, and 1 sector printed a 5-week closing low. YTD we see massive gains from energy with a small gain from utilities. Materials has given back its YTD gains.
In the large-cap space, 3 sectors printed 52-week closing lows, 2 sectors printed 13 week closing lows, and 1 sector printed a 5-week closing low. YTD we see massive gains from energy and no other sectors.
In the small-cap space, 2 sectors printed 52-week closing lows. YTD we see massive gains from energy. Materials has given back its YTD gains.
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