Morningstar Leisure Sector

by: Bill Zimmer Friday, February 26th, 2010 at 10:23 am

Last evening while reviewing some composite charts a few sectors that appear to be challenging recent highs caught my attention. Today we’ll take a look a the Morningstar Leisure Sector. Perhaps next week move on to a few others.

The 2010 highs for this sector loom just above the current price. However, our dollar weighted advancing minus declining volume has already moved into new high territory [first indicator box] as has the sectors relative strength as measured against the NYSE [second indicator box].  The A/D line while rising is not near new highs suggesting that the strength is not occurring in all component industry groups. The question becomes what is driving this sector and what may carry it to new highs.

The Leisure Sector is made up of seven industry groups as shown in the Changes and Trends Report:

Notice that 3 of the seven groups are in short-term downtrends, while a few are challenging highs or making new highs.

Momentum players will want to look at the strongest groups while value players may want to check out the laggards.  On the momentum side General Entertainment has been making new highs – most recent one on Wednesday the 24th.  The indicators advancing minus declining volume ($ weighted), Relative Strength, and A/D line look exactly like the overall sector.  Here are the stocks contained within Morningstar’s General Entertainment Group:

Happy Hunting!

Have a wonderful weekend!