Exposing Ideas to the Envelope of Serendipity



Contact moo at: bluechipbulldog@gmail.com



Thursday, September 3, 2009

SECTOR WATCH : RSI(7)


Aviat helped sparked an idea for me that I think will help quantitatively identify when  sector rotation maybe afoot. The idea is simple; RSI(7) will show us where and when demand/supply are taking root. Do not mistake these signals to prompt immediate actionable trades, but instead consider it a "heads up". Drilling further down into a sector and finding possible candidates for a trade would only occur with other information 

What we should look for is excessive supply being demonstrated in one or more sectors  while at the same time witness excessive demand in others. I think the weekly and monthly signals will be the ones to watch, but the daily signal will demonstrate the first steps into or out of the important zones of consideration.


Right now, Regional Banks and DJ US UTILS are building supply, while Healthcare, Pharmacuticals, and Basic Materials building demand.

On the side bar, I have included a link to an RSI(7) tool that will accept any list of symbols. 


I generated the chart below using this list of US Sectors:
IAT ITB IYR IEZ IYG IYF IDU IYE IYJ IEO IAI ITA IYC IYT IHI IAK IYH QQQQ IYK IYW IYZ IHE IYM IHF

Ticker Last RSI7d RSI7w RSI7m Zone (estimate) 
IAT    *
19.2026.9452.2643.091st Day below 30
ITB    *
12.3434.3658.0850.93
IYR    *
37.7532.4857.6348.49
IEZ    *
35.6335.1554.2746.65
IYG    *
51.7232.3359.9748.88
IYF    *
48.8633.7461.4449.23
IDU    *
69.1828.3657.2348.171st Day below 30
IYE    *
29.5333.1650.5445.88
IYJ    *
46.3034.7559.5650.16
IEO    *
44.4632.2753.0348.17
IAI    *
26.5538.7558.551.04
ITA    *
44.1248.4762.6450.74
IYC    *
48.9239.7662.5254.98
IYT    *
64.8335.2759.7751.3
IHI    *
47.5936.6265.8256.21
IAK    *
25.3540.966.6351.03
IYH    *
57.5137.0265.2756.88
QQQQ    *
39.2535.4261.7557.42
IYK    *
50.1534.2163.3154.13
IYW    *
48.6239.2465.4360.76
IYZ    *
17.3630.9446.2943.48
IHE    *
49.4148.0569.9761.87
IYM    *
49.6340.5161.2552.48
IHF    *
42.3348.5969.456.1



Industry Tickers: 
GDX ADRE IIH ADRA IGN BBH IAH PBW IHF IGV PBJ IYZ PSL PTE QQEW QQQQ PYZ SWH IBB PXN XLV PSP IYM PIV IGW PTH IGM XLP IYW EVX IHE PBS IYH IWM IYT PEJ PSJ XLB BDH XLK PXQ HHH PKW WMH ADRD IJT PBE MKH PUW IYC XSD IYK PXI PHO IJR IHI ADRU IJK TTH PKB IVW IJS PRN PZD PXE IGE ISI PEZ SMH IYY NYC PJP IYJ MDY IJH IJJ PMR IVV SPY PSI PPA XBI NY XLY PJB PPH IVE XLI OEF PUI PXJ SLX RTH IYE XLE PFI IEZ ITA XHB IDU ITB DIA IEO IYG PEY IAI PIC IAK XLF UTH IYF IAT XLU OIH IYR RKH ICF

View Industry RSI(7) D,W,M 
(After the jump, click the "GO" button to generate the RSI values)

View McClellan Breadth ETF Rankings
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