JSE Relative Sector Ratings: Here's What's Leading/Improving

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Here's an analysis of the JSE sectors considering the weighting of the timeframes (Short > Medium > Long):

Technology VS TOP 40

Short Term: Weak
Medium Term: Neutral
Long Term: Strong
Change Analysis: A drastic deterioration from Strong (Long Term) to Neutral (Medium Term) and further to Weak (Short Term).
Overall Preference: Leans Weak due to the most recent Short Term signal outweighing the Long Term strength.

Miners VS TOP 40

Short Term: Neutral
Medium Term: Weak
Long Term: High Bearish Momentum / Approaching Oversold
Change Analysis: Improvement from High Bearish Momentum/Approaching Oversold (Long Term) to Weak (Medium Term) but no further improvement in the Short Term.
Overall Preference: Leans Weak due to the recent Medium Term signal and the negative Long Term momentum.

Banks VS TOP 40

Insurers VS TOP 40

Short Term: High Bullish Momentum / Approaching Overbought
Medium Term: Strong
Long Term: Strong
Change Analysis: Improvement from Strong (Long Term) to Strong (Medium Term) and further to High Bullish Momentum/Approaching Overbought (Short Term).
Overall Preference: Strong, with the Short Term signal indicating potential for continued outperformance but also caution due to overbought conditions.

Gold Miners VS TOP 40

Short Term: Neutral
Medium Term: Neutral
Long Term: Strong
Change Analysis: Deterioration from Strong (Long Term) to Neutral in both Medium and Short Term.
Overall Preference: Neutral, as the recent signals outweigh the Long Term strength.

Platinum Miners VS TOP 40

Consumer Staples VS TOP 40

Short Term: High Bullish Momentum / Approaching Overbought
Medium Term: Strong
Long Term: Neutral
Change Analysis: Improvement from Neutral (Long Term) to Strong (Medium Term) and further to High Bullish Momentum/Approaching Overbought (Short Term).
Overall Preference: Strong, with the Short Term signal suggesting continued outperformance but nearing overbought levels.

Consumer Disc. VS TOP 40

Healthcare VS TOP 40

Short Term: High Bullish Momentum / Approaching Overbought
Medium Term: Neutral
Long Term: Weak
Change Analysis: Significant improvement from Weak (Long Term) to Neutral (Medium Term) and further to High Bullish Momentum/Approaching Overbought (Short Term).
Overall Preference: Strong, driven by the recent Short Term momentum.

Hospitals VS TOP 40

Short Term: Neutral
Medium Term: Neutral
Long Term: Weak
Change Analysis: Improvement from Weak (Long Term) to Neutral in both Medium and Short Term.
Overall Preference: Neutral, with some improvement from the longer term.

Coal Miners VS TOP 40

Short Term: Neutral
Medium Term: High Bearish Momentum / Approaching Oversold
Long Term: High Bearish Momentum / Approaching Oversold
Change Analysis: Improvement from High Bearish Momentum/Approaching Oversold (Long Term and Medium Term) to Neutral (Short Term).
Overall Preference: Neutral, showing some recent stabilization after a period of negative momentum.

Telecoms VS TOP 40

Paper & Pulp VS TOP 40

Short Term: Neutral
Medium Term: Neutral
Long Term: High Bearish Momentum / Approaching Oversold
Change Analysis: Improvement from High Bearish Momentum/Approaching Oversold (Long Term) to Neutral in both Medium and Short Term.
Overall Preference: Neutral, indicating a recent stabilization after negative longer-term momentum.

Chemicals VS TOP 40

Short Term: Neutral
Medium Term: Strong
Long Term: High Bearish Momentum / Approaching Oversold
Change Analysis: Improvement from High Bearish Momentum/Approaching Oversold (Long Term) to Strong (Medium Term), followed by a slight deterioration to Neutral in the Short Term.
Overall Preference: Leans Neutral, with the recent Short Term signal carrying more weight than the Medium Term strength.

Luxury Goods VS TOP 40

Short Term: Weak
Medium Term: Neutral
Long Term: Neutral
Change Analysis: Deterioration from Neutral (Long Term and Medium Term) to Weak (Short Term).
Overall Preference: Weak due to the most recent Short Term signal.

Summary Ranking of Sectors (Preference based on Short Term, then Medium, then Long Term):

Insurers VS TOP 40: High Bullish Momentum / Approaching Overbought (Short Term)
Consumer Staples VS TOP 40: High Bullish Momentum / Approaching Overbought (Short Term)
Healthcare VS TOP 40: High Bullish Momentum / Approaching Overbought (Short Term)
Telecoms VS TOP 40: Strong (Short Term)
Chemicals VS TOP 40: Neutral (Short Term), Strong (Medium Term)
Gold Miners VS TOP 40: Neutral (Short Term), Neutral (Medium Term), Strong (Long Term)
Banks VS TOP 40: Neutral (Short Term), Neutral (Medium Term), Neutral (Long Term)
Platinum Miners VS TOP 40: Neutral (Short Term), Neutral (Medium Term), Neutral (Long Term)
Consumer Disc. VS TOP 40: Neutral (Short Term), Neutral (Medium Term), Neutral (Long Term)
Hospitals VS TOP 40: Neutral (Short Term), Neutral (Medium Term), Weak (Long Term)
Coal Miners VS TOP 40: Neutral (Short Term), High Bearish Momentum / Approaching Oversold (Medium Term)
Paper & Pulp VS TOP 40: Neutral (Short Term), Neutral (Medium Term), High Bearish Momentum / Approaching Oversold (Long Term)
Miners VS TOP 40: Neutral (Short Term), Weak (Medium Term), High Bearish Momentum / Approaching Oversold (Long Term)
Technology VS TOP 40: Weak (Short Term), Neutral (Medium Term), Strong (Long Term)
Luxury Goods VS TOP 40: Weak (Short Term), Neutral (Medium Term), Neutral (Long Term)

Lester Davids

Senior Investment Analyst: Unum Capital

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