The Morrisian Indicator

I’ve figured out what sectors the stocks that I am following are.  Most of these stocks are in the basic materials sector (XLB).  Surprisingly, there are stocks that you would think would be in the Energy Sector (XLE) that are actually in XLB.  Here is the sector list and the stocks I am looking at.

IYK:  Consumer Goods:  ODP

XLV: Health Care:  EXEL

XLK: Technology:  AMD

XLI: Industrial Goods:  CX, MTW

XLF: Financials:  CBG, GNW, MS

XLB: Basic Materials:  AKS, CIE, DNR, FCX, MPC, MRO, MT, NBR, OAS, PBR, SDRL, TCK

Of the above Sectors XLV XLF & XLB are looking the worst on long-term charts.  The best looking long-term charts are IYK, XLK & XLI.  Right now all of the stocks I am following is at the following positions on my indicator starting from the highest to the lowest: GNW 1.47; MS 1.27; EXEL 1.23; ODP .73; MPC .57; PBR ..53; MRO .47; NBR .37; TCK .1; OAS .03; CBG 0; MTW -.03 (Crossover); AMD -.13; DNR -.17; CX -.27; MT -.43; CIE -.5; SDRL -.73; FCX -.83; AKS -1.07.

As seen above I had a crossover with MTW.  When one looks at the MTW near-term chart one can see that this stock recently dropped below its 200 period moving average and is trying to rise a bit.  It will probably rise to touch this moving average and head south again.  I will certainly be buying Puts for this position.

 

EC Morris

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