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Current Hot and Cold Sectors

As at December 5th, 2016

The relative strength comparison (RSC) takes the progression in price of one instrument and compares it to another. If a share displays a positive relative strength in comparison to the All Ordinaries Index, this is a bullish sign. This share would have, in effect, been outperforming the index.

This section of the website now reports on the new Globally Standardised Industry Classifications (GICS). These sector classifications have recently been phased in as a Standard and Poor’s initiative to standardise industry classifications on a world-wide basis. These classifications are now the predominant way to observe the Relative Strength of each sector or Index.

The ultimate aim is to take long positions in shares that have been outperforming their sector, in sectors that have been outperforming the All Ordinaries Index. I prefer to take short positions in shares that have been underperforming their sector, in sectors that have been underperforming the All Ordinaries Index. This analysis was performed using GPS software which is a Share Wealth Systems product. For information about the shares included in each sector or Index, refer to http://www.asx.com.au/products/gics.htm.

Based on this analysis, here are the current Hot and Cold Sectors:

Please note:

  1. When the All Ordinaries Index is trending downwards, it is possible that some sectors in the ‘Hot’ list are also trending downwards, but at a slower comparative rate. When the All Ordinaries Index is trending upwards, it is possible that some sectors in the ‘Cold’ list are also trending upwards, but at a slower comparative rate.
  2. The sectors listed below are not in any particular order of strength or weakness.
  3. ‘Hot’ sectors have been outperforming the All Ordinaries for a minimum of 5 weeks. ‘Cold’ sectors have been underperforming the All Ordinaries for a minimum of 1 week.

General Advice Warning

Louise Bedford, The Trading Game Pty Ltd and Trading Secrets Pty Ltd are Authorised Representatives of Weather Pro Pty Ltd, Rep No. 418664, AFSL 419155. Whilst all care is taken in providing accurate RSC information as described, no responsibility will be taken by The Trading Game Pty Ltd, Trading Secrets Pty Ltd and /or its agents as to the accuracy of this information. This sector information can be derived by using your own charting package that can produce RSC analysis. The information on this website is of a general nature and does not take into account your objectives, financial situation or needs. Before undertaking any investment strategy, you should seek the advice of a licensed financial adviser.

 

Hot Sectors

  • Materials
  • ASX 50
  • ASX Small Resources
  • ASX 100 Resources
  • ASX 200 Resources
  • ASX 300 Resources
  • ASX Midcap 50 Resources

Cold Sectors

  • Consumer Discretionary
  • Consumer Staples
  • Health Care
  • Industrials
  • Information Technology
  • Property Trusts
  • Telecommunications
  • Utilities
  • ASX Small Ordinaries
  • ASX Small Industrials
  • ASX 100 Industrials
  • ASX 200 Industrials
  • ASX 300 Industrials
  • ASX Midcap 50
  • ASX Midcap 50 Industrials

General Advice Warning

The Trading Game Pty Ltd (ACN: 099 576 253) is an AFSL holder (Licence no: 468163). This information is correct at the time of publishing and may not be reproduced without formal permission. It is of a general nature and does not take into account your objectives, financial situation or needs. Before acting on any of the information you should consider its appropriateness, having regard to your own objectives, financial situation and needs.