6.20.16 – Emerging Relative Strength and Weekly Letter

 Asset Class Overview



Sector Watch 



Morningstar Legacy Sectors:


Emerging Relative Strength and Weekly Letter

The weekly newsletter (If you did not receive it, let me know) the weekly look at the Morningstar Legacy Sectors showed the following (19 of 31) rated overweight:

  • MG110 -Chemicals-
  • MG120 -Energy-
  • MG130 -Metals & Mining-
  • MG210 -Conglomerates-
  • MG310 -Consumer Durables
  • MG320 -Consumer Non-Durables-
  • MG340 -Food & Beverage-
  • MG350 -Tobacco-
  • MG440 -Real Estate-
  • MG520 -Health Services-
  • MG610 -Aerospace/Defense-
  • MG620 -Manufacturing-
  • MG630 -Materials & Construction-
  • MG730 -Retail-
  • MG760 -Diversified Services-
  • MG820 -Computer Software & Services-
  • MG830 -Electronics-
  • MG840 -Telecommunications- &
  • MG910 -Utilities-

With this information let us look at this weeks emerging relative strength run. Of the 19 hits for emerging relative strength 14 are in overweight categories.


If you look at the Watch List update spreadsheet in the weekend updates you will recognize this format:


It may seem a bit laborious to do, just go to Use our Databases, scroll to buy ticker symbol. You can only do one at a time but it moves along pretty quickly with a few.

When I became a broker back in 1972 an old sage in the office told me only recommend stocks of household names. Why? Because then the calls you will get when the market goes down, is what’s the matter with GE instead of what is the matter with that piece of @##$% you sold me!

With that in mind I bold faced three stocks above ORCL, RDEN, and SKUL that may qualify as household names, a place to start.