When I was younger, I remember thinking of the stock market as some complex, incomprehensible entity. I’m guessing that’s how you probably felt at one time or another as well…
Now I see it in a completely different light altogether because I’ve uncovered the patterns, researched the subtle nuances, and studied the secrets.
That’s how I’m able to stay ahead of the curve when new market situations arise, and how I can quickly sense the dangerous areas like this one…
Investor sentiment can be as hard to read as the market ups and downs themselves. I guess it’s no coincidence that the two are intertwined…
But there are plenty of indicators to tell us what is likely, and many hints dropped by unwitting insiders or even the market itself.
And one place I like to dig around in to get a better grasp of the current market is researching the market sectors.
That’s how I find what to avoid, which way the overall market could be leaning, where to look for the strongest stocks, etc.
And my most recent research session showed me that a recent sector power may be falling from grace…
Utilities have been 1of the 2 strongest sectors for quite a while, that is until maybe a few weeks ago.
The interest in this defensive sector had illustrated bearish market sentiment for some time, but now it could be making way for the more bullish sectors.
This much is apparent by looking at the recent performance of the utilities sector. As of yesterday, it was the only sector in the negative over the past week, 2 weeks, and month.
And after a long reign at the top, a big fall might be just what we can expect from utilities…
