We end the second quarter of 2023 on a strong note with the vast majority of indexes and sectors bullish. The “Misery Index” stands at 7.7 or one of the lower values for an administration approaching reelection for a second term.
New signals are generated by changes in two sectors and I’ll get to that information in a moment.
All major indexes with exception of the S&P 100 and Dow Jones Industrial Average (DJIA) ended higher this week. One or two stocks likely tipped the scales in both indexes. Small- and Mid-Cap stocks are still not participating to their fullest as we observe both the NYSE and NASDAQ continue to hover around the 50% bullish area.
Breaking U.S. Equities down into the eleven (11) sectors we find Discretionary and Real Estate recommending a Sell. For portfolios holding either sector, set a 3% TSLO under the ETF. If a portfolio is housed at Schwab, where decimals are permitted, I would set a TSLO of 2.6% for VCR or IYC.
Both Industrial and Technology flashed a Sell several weeks ago so I assume those TSLOs are still in place unless already struck.