HOW TO USE THE RELATIVE SECTOR REGIMES: Example/JSE Technology

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HOW TO USE THE RELATIVE SECTOR REGIMES: JSE Technology as an example. This data set is published daily and shows how a sector is performing compared to the broader market (using JSE Top 40 Index as a proxy). Toward the latter part of last week, NPN and PRX (JSE Technology) was trading in an oversold range versus the Top 40 Index. This can be seen with indicator trading in the blue shaded area (value/cheap zone). By trading in this zone, the data suggested that there was an opportunity to possibly buy the sector for a rebound trade. We have since seen NPN and PRX stabilize, with a minor rebound, which gave short term/actives traders an opportunity to profit.

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