March 2024 barometer update
World stock markets have made significant gains since the start of the year. However the FTSE 100 has been choppy in comparison and flat during February. Seasonality trends point to there being a low in March.
The Sector Rotation Clock continues to point to Early Expansion in the stock market cycle. Technology and Consumer Discretionary top sectors confirm this by being bullish. Here is the clock with the bullish and bearish sectors updated:
The dial continues to sit on the edge of Early Expansion. The top sectors which benefit from this stock market phase are Technology and Consumer Discretionary.
According to the Barometer the Consumer Discretionary sectors that are worth examining are still Household Goods, General Retailers, Media and Travel & Leisure. I am looking to purchase an AIM-listed travel company.
To summarise the indicators:
The Barometer has fallen slightly to +2.
The Hi-Lo-Grometer has returned to the light green zone. The 52-week highs and lows both exceed 100.
The US Treasury Yield indicator has risen further to above -120 points. Will it continue to rise until it ceases to be inverted?
The seasonality trends indicate that there should be a pull back during March. However there should be a good buying opportunity once that low has passed.
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