Intro

For the last several months, we have been discussing our expectations for economic slowdown fears to become more widespread and that a negative estimate revisions cycle had a near 100% chance of occurring.  Additionally, we have commented that our work has been suggesting that all things cyclical — Industrial Cyclicals, Commodity Cyclicals, Consumer Cyclicals, and Tech Cyclicals — would be hit the hardest and likely be underperformers as the S&P 500 ultimately falls into our next downside target zone of 3600-3500. 

We have had a lot of client interactions regarding our positioning forecast and have been asked what sub-industries (GICS L-4) should be avoided (being underweight) or could be shorted based on our work.  

So, in this note, we include the results of our deep dive into which areas are flashing the most unfavorable readings using the following proprietary analytical tools:

  • 8-panels/ASM
  • HALO

(see appendix for description of 8-panels and HALO)

The video in this report is only accessible to members

Sub-Industry — Avoid/Short

Materials

  • Commodity Chemicals
  • Construction Materials
  • Aluminum
  • Div Metals & Mining
  • Steel

Industrials

  • Building Products
  • Electrical Comp & Equip
  • Conglomerates
  • Industrial Machinery
  • Trading Companies
  • Trucking

Consumer Discretionary

Homebui...

Unlock this article with a FREE 30-Day Trial!

An FSI Pro, or FSI Macro subscription is required in order to access this content.

*Free trial available only on a monthly plan

Disclosures (show)

Get invaluable analysis of the market and stocks. Cancel at any time. Start Free Trial

Articles Read 2/2

🎁 Unlock 1 extra article by joining our Community!

You’ve reached your limit of 2 free monthly articles. Please enter your email to unlock 1 more articles.

Already have an account? Sign In

Want to receive Regular Market Updates to your Inbox?

I am your default error :)