Central Theme Now: Sector Rotation

 Summary of content for the week of  Nov 20:

1. Week 47 major indexes performance;

2. Week 47 US sector indexes performance;

3.Major indexes weekly charts of support and resistance levels;

U.S

U.S major indexes ended mixed for the week ended Nov 20, SPX and DJI finished lower after two-week up in a row but tech-heavy Nasdaq index(COMP) record slight weekly gain. As the incoming positive vaccine news and restriction measures resurface caused by the recent spike in virus cases and hospitalizations, we see this tug-of-war likely continuing between the leaders so far and the economically sensitive investments that have lagged. 

Sectors Rotate: Tech and growth stocks, and also stocks related to "stay-at-home" led the mark since Mar bottom. However, the recent vaccine developments acted as a catalyst for the shift in investment theme, as confidence in economic rebound a matter of time has been strengthened. In the previous two weeks, We see obvious rotation to cyclical sectors such as energy and financials which have been negatively impacted by the pandemic. 

Among 11 SPX sectors, Energy(XLE) outperformed as oil prices rose. Healthcare(XLV) and Utilities(XLU) lagged. Market starts to pay attention to travel and holiday leisure-related stocks such as airlines, cruise ships, and casino stocks. Refer to below weekly sector performance table. 

China/HK

Shanghai SSE index rose strongly to its two-month high after solid economic data, China also signs the Regional Comprehensive Economic Partnership(RCEP) with 14 other Asian countries. The free trade area is the world's biggest accounts for over 30% of the current global GDP. Technically, SSE still trading inside its four-month sideway price top range. 

HSI index also rose to its four-month high, 3rd week consecutive up, next resistance to watch out is at 27000 level. 

Singapore

STI has been exceptionally strong in the past three weeks, added a total of 15.3% as compared to its total loss of 25.7% from the beginning of the year till three weeks ago. Immediate technical resistance to watch at previous high 2839 hit in June. The badly hit airline and related stocks performed the best, such as SIA and SATS.