Defensive Sectors Emerge Top Performers in February

On the last day of the month I always stick my head up from the day to day noisy swing trading weeds and look through monthly charts of all of the major markets and individual sectors to gain some high level perspective.

This month, we’ve seen three of the four top sector SPDR components fall into defensive categories: health care, staples, and utilities.

Monthly charts to follow.

Staples $XLP broke out from a 6 month pullback into the rising 20 period EMA and are now quickly back to new closing monthly highs.

Utilities $XLU also snapped a 6 or 7 month pullback and is quickly in route to test all time highs.

Perhaps the most actionable and powerful setup is healthcare $XLV which is potentially emerging from an over 2 year consolidation.

That’s a pretty nice looking continuation pattern in the works there on a very large timescale.

Note all of these charts are adjusted for dividends.

Thanks for reading and good luck out there.

Enjoy what you read? Share it below and be sure to tag @thetraderisk.

Find similar content on the following:
Posted in ,
Tagged with

Evan Medeiros

Evan is the founder of the Trade Risk. With 25 years of coding experience and a B.S. in computer science, Evan brings a systematic discipline to investing in the stock market.

Don't miss out on more educational articles just like this!

Please enter your name.
Please enter a valid email address.
Something went wrong. Please check your entries and try again.

Leave a Comment