MARKET OUTLOOK, 24 JANUARY 2020

The S&P500 index was down -1.0% last week and closed at 3329.62.

We look for oversold, up moving momentum sectors or overbought down moving momentum sectors.

Here are the momentum and overbought/oversold analysis for this week :

As usual, we are looking for sectors that are picking up on momentum while oversold.

The Pharmaceuticals sector (XPH) continues to move ahead with positive rank, it is still in an uptrend despite last week’s correction, we believe there is still upside for that sector therefor we are long on the Pharmaceuticals sector.

Another sector that is underperforming and our models predict a move up is the Materials sector (XLB) which has been lagging the S&P but we believe has some room to the upside.

The Semiconductor sector (XSD) had a nice run to the upside and is in oversold territory, it held its ground last week (mostly due to INTC flying up more than 8%), we forecast a correction so our portfolio reduced exposure to that sector.

The real jewel of the week is the Aerospace & Defense (XAR) which has finished correction and is ready for the next leg up.

Specific stocks in these sectors may be found in our detailed alerts and stock picks service.

AlphaOverBeta Trades

We have a number of specific stock picks in the above sectors described in our website.
You may find all of AlphaOverBeta trades in the Real Time Trading Updates of our website

Trade Safely,
Alon

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