2012: Top Down Sector Analysis Part 2

This is a continuation from my previous post http://ibankcoin.com/dchsn6/2012/01/02/2012-top-down-sector-analysis-part-1/

4. SPDR Consumer Discretionary (NYSE: XLY)

This is sector has held up really well even after the volatile 2011. $35 region has been a nice support as long the prices are above $35.

I like Mcdonald’s (NYSE: MCD), however not at these prices. If you are trying to have NYSE: MCD in your portfolio look for dips in the market for buying opportunities as a long term hold. A slight pullback to $90-$95 region would give the best risk-reward play.

5. SPDR Consumer Staples (NYSE: XLP)

As long it hold $29 region, I would be a dip buyer in this name.

I didn’t like any of the chart setups in this sector. Maybe in a few weeks time, some of them might setup.

6. SPDR Energy (NYSE: XLE)

I need to see how it behaves in the $82 region.

I like Elpaso Corporation (NYSE: EP) as long as it holds over $22

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