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Tackle Today: Sector analysis

October 1, 2020

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A part of top down analysis


It is the first day of October, and markets are starting the month off on a bullish bias with most sectors in the green.  One sector that is notably down is the Energy sector which is under pressure again as Crude Oil is down over -6% in mid-day trading.

Within top down analysis, sectors are an important part of the market to analyze.  Once you have looked at the broad market indexes, most traders then examine the sectors to identify strength and weakness within the market.

Energy (Ticker: XLE) is our lowest rated sector on our weekly rankings with a -20 reflective of the overall bearish trend.  Technology (Ticker: XLK) is our highest rated sector, along with Cyclicals, Basic Materials, and Industrials at the +35 yard marker which reflects a Slightly Bullish posture.

Learning to spot sector trends can help you make better decisions on individual companies.  It’s an important process to work through on a daily and weekly basis as you’re trading the markets.  If you have not yet been trained on top down analysis, you should take the 7 Step Guide to Trading course, which is free, on the Tackle Trading website. 

You can find the course here: https://tackletrading.com/course/seven-step-guide-to-trading/


Chart of the Day

Energy Select Sector SPDR Fund

The Energy Sector ETF (Ticker: XLE) has been bearish for some time now and is the worst performing sector year to date.  It is breaking down on Thursday with broad based weakness in these kinds of stocks.  Our weekly ranking was -20 in our newsletter and is our most bearish ranking amongst the sectors.

Video of the day

How to do Covered Calls in a Volatile Market

Watch the replay of our special webinar held last night with Coach Noah on how to trade Covered Calls in a Volatile Market.

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Halftime Report 12:30 PM EST

The Halftime Report starts at 12:30 EST and covers what news is driving the market, chart analysis from the movers and shakers of the day and fun in a way that only Matt and Tim can deliver.

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