Sexy Looking Sectors to Buy Today

Sexy Looking Sectors to Buy Today

What are the sexy looking sectors you should be buying today and the potential new leaders for 2014?

Despite several short and sharp moves up and down since May 2013, the S&P ASX 200 and US Dow Jones Industrial Average today trade at similar levels to where they were 6 months ago.

However, taking a look under the bonnet, there are a couple of economically sensitive sectors that continue to act well and suggest that despite this 6 month correction, we should still be looking for higher prices into next year.

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The ASX 200 Industrials Sector, shown below, has risen 33% since its low in September 2011, but it’s ride higher has been anything but smooth. A significant set back between March and July 2012 and another significant correction between February and June 2013 took investors in this sector on a wild and turbulent ride. However, through that time, although the retracements have been deep, each peak has resulted in a higher high and each trough has resulted in a higher low. This is the sort of price action that one should be looking for to identify any stock or sector that is trending higher. Confirmation of this uptrend is also seen with the 10, 35 and 50 day moving averages now all trading above a rising 200 day moving average. While it has been a torrid time for the ASX 200 Industrials Sector over the past 4 years, it appears an upside break-out from its 4 year long sideways correction is just around the corner.

ASX 200 Industrials Sector Index

2013.10.12 ASX 200 Industrials

(Source: HUBB Intergrated Investor)

In a world where economic growth is still a concern, one industry suggests that perhaps clearer sky’s lay ahead. As the world recovers from the worst economic event in a generation, although we have had to deal with several aftershocks, it  now appears that the increase in global economic activity witnessed in recent months is also being reflected in the world’s demand for energy. If economic activity is to increase, the consumption of energy will need to increase as the production of goods and services ramps up and the transportation of those goods and services around the globe increases.

As shown below, both the ASX 200 Energy Sector Index and the US Dow Jones Energy Sector Index are grinding higher with higher highs and higher lows and the technical trends now suggest  that these moves higher are likely to continue well into 2014. With these higher highs and higher lows in both indexes now being confirmed by the 10, 35, and 50 day moving averages trending higher above rising 200 day moving averages, there surely must be some interesting opportunities starting to present in both markets.

ASX 200 Energy Sector Index

2013.10.12 ASX Energy

(Source: HUBB Intergrated Investor)

US Dow Jones Energy Sector Index

2013.10.12 US DJ Energy

(Source: HUBB Intergrated Investor)

While I have written about this sector quite a bit in the past 12 months, I’ll continue to bang my hands on the table until someone listens. The opportunities I continue to find in the technology sector are just too good. At UGC, we believe that we are in the early stages of perhaps one of the most powerful technology bull markets ever witnessed. One that could last for at least a full decade but possibly longer. The value offered in some of the world’s best technology companies is quite incredible, especially when you consider how much cash these companies produce each year and how incredibly strong their balance sheets are. As shown below, it appears the smart money is also attracted to this sector as the US Dow Jones Technology Sector edges higher and now the moving averages are confirming the trend.

US Dow Jones Technology Sector Index

2013.10.12 US DJ Technology

(Source: HUBB Intergrated Investor)

From a technical analysts point of view these sectors are looking as good as it gets.

The months ahead could be extremely arousing!!

Contact United Global Capital today and speak with one of our financial strategists for a No Cost, No Obligation consultation on 03 8657 7640 or email info@ugc.net.au to learn how you can position your self to profit safely.

Here’s to your long term health and wealth.

The information contained in this report is General in nature and has been prepared without taking into account your objectives, financial situation and needs.
Joel Hewish

Joel Hewish

CEO / Chief Financial Strategist at United Global Capital
B.Bus (Bank & Fin), GDipAppFin, GCertFinPlan
Authorised Representative No. 416387
Joel is the founder and CEO of UGC.
He is a licensed financial advisor with 15 years experience assisting clients grow, manage and protect their wealth.
Joel Hewish