top of page
Search

Technical Value Names - Part II

S&P Technology, Healthcare and Financials will likely continue to lead the marketplace this year as evidenced by the strong relative strength and price momentum trends. Since the three S&P sectors account for over 50% of the overall SPX by market capitalization their performances will directly influence the overall market trend.

Nonetheless, these leadership S&P sectors are trading at near-term overbought levels. Since tax loss selling has ended, and if market breadth continues to broaden, as we expect, it is reasonable to expect lagging S&P sectors and S&P names may begin to emerge into early-2020.


Individual names residing within the improving quadrant of the RRG charts can offer investors/traders potential candidates since many of these stocks are not technically extended and most important, are now beginning to show technical signs of improving relative strength and price momentum.


In addition, investors and traders tend to take greater risk earlier in the year seeking out underperforming names with favorable risk/reward opportunities. Enclosed below are the Relative Rotation Graphs (RRG) of S&P Communication Services (XLC), Energy (XLE), Industrials (XLI), and Consumer Discretionary (XLY). Also attached are charts of individual names along with their technical projections based on technical breakouts and risk levels.


Most of these stocks reside within the improving and leading RRG quadrants and most have been undergoing significant technical basing efforts over the past year. This list of stocks is for patient investors and traders looking for technical value names.


Source: Courtesy of StockCharts.com

Source: Courtesy of StockCharts.com

Source: Courtesy of StockCharts.com

Source: Courtesy of StockCharts.com

Source: Courtesy of StockCharts.com

Source: Courtesy of StockCharts.com

Source: Courtesy of StockCharts.com

Source: Courtesy of StockCharts.com

Source: Courtesy of StockCharts.com

Source: Courtesy of StockCharts.com

Source: Courtesy of StockCharts.com


Source: Courtesy of StockCharts.com

Source: Courtesy of StockCharts.com

Source: Courtesy of StockCharts.com

Source: Courtesy of StockCharts.com

Source: Courtesy of StockCharts.com

Source: Courtesy of StockCharts.com

Source: Courtesy of StockCharts.com


40 views0 comments

Recent Posts

See All

Closing of the Newsletter

Dear clients, After four rewarding years, the time has come for me to close the Lee Technical Strategy Newsletter, effective today. I want to take this opportunity to let you know what a great honor a

Technical Review of the Top 25 NDX 100 Index Stocks

NASDAQ 100 Index (NDX) – NDX is a modified market capitalization-weighted index comprising 100 of the largest non-financial companies on the NASDAQ Composite Index (COMPQ). NDX is heavily weighted tow

bottom of page