Weekly Sector Report | 11/26/10

An interrupted trading week:  interrupted by our American Thanksgiving tradition, some spit spat between N/S Korea as well as continued concerns about sovereign debt.  The broad market index was down .61% with quite a bit of push and tug in the underlying sectors.  Here's the sector summary (click all images to make larger):

 Banks, Financial Services and Financials were hardest hit.  With the USD strengthening in the wake of these concerns, Basic Materials and Resources also suffered.  Retail stood tall, and the results of Black Friday will certainly impact this sector.

Let's take a look at the weekly chart of the total stock market index:

It was a light volume week due to the holiday, and the market continues to consolidate at this level. It is going to go one way or the other.  Would that I had a crystal ball!  Mine's in shards; perhaps yours is in better shape. 

I want to point out the the lower part of the chart  where I've consolidated two indicators (that show up on the detail charts).  The purple dashed line shows the performance of this index for the time period shown (Jan 07- current).  The broad market is still 20% below those highs.  It is a cogent reminder that "not-losing" is the key to winning.

The market is gathering energy through this consolidation for a move.  I don't mind being marginally committed (a/k/a standing aside) to see which way that might be. If the N/S Korean conflict and the sovereign debt issues get cleared, the move is likely to be up.  If not, a pullback will be in store.

I've prepared a chart book for you which you can access here.  It is a large file, so please be patient with the download.