New Positions Are Warranted, But Defensive Sector Strength Signals Modest Caution (The ETF Trader And Investor For The Week Of 10/5-10/9)

This column assumes that ETFs are the primary investment tool for the reader.

Please see my weekly market summation for a review of the macro-economic environment and general macro-level market trends.

Investment thesis: the macro-averages are now in a bullish posture; it’s a good time to take a new position. But be careful; defensive sectors are starting to rise, indicating traders are a bit more cautious.

Let’s start by looking at last week’s market activity, beginning with the treasury market:

TLT 5-day

The treasury market moved lower on Monday and then traded sideways for the rest of the week. Volatility was higher on late Tuesday and Wednesday as the market digested the whipsaw activity regarding additional fiscal measures. Also note the sharp sell-off and subsequent rally on Friday, likely due to additional fiscal talk.

SPY 5-day

SPY trended higher for the entire week as shown by the central tendency line

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2020 Life Sciences Sector Report from CLSA Shows Strong Growth in Jobs, Investments and Therapeutic Pipeline in California

SAN FRANCISCO, SACRAMENTO, SAN DIEGO, Calif. & WASHINGTON–(BUSINESS WIRE)–Oct 7, 2020–

California Life Sciences Association (CLSA), the trade association representing California’s life sciences industry, today released the 2020 California Life Sciences Sector Report, which shows that California’s life sciences sector directly employed 323,723 people, generated $191.6 billion in revenue, is projected to attract $6.5 billion in venture capital (VC) and received $4.5 billion in funding from the NIH. Produced with PwC US, the 2020 snapshot highlights the strength of California’s biomedical sector – the largest cluster in the world – as evidenced by significant increases in employment, earnings, graduating science and engineering PhDs, VC investment, and potential new drugs and medical devices in the pipeline.

Key Highlights from 2020 California Life Sciences Sector Report

  • 4.0% increase in total life sciences jobs (up more than 12,000 from prior year), with companies directly employing 323,723 Californians – the most in
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Global Lime Market- Post Pandemic Recovery Plan Strategies and Processes|Rapid Growth of Construction Sector to Boost Market Growth

The global lime market size is expected to grow by 20.60 million tons during 2020-2024. The report also provides the market impact and new opportunities created due to the COVID-19 pandemic. We expect the impact to be significant in the first quarter but gradually lessen in subsequent quarters – with a limited impact on the full-year economic growth.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20201007005531/en/

Technavio has announced its latest market research report titled Global Lime Market 2020-2024 (Graphic: Business Wire)

Request challenges and opportunities influenced by COVID-19 pandemic – Request a Free Sample Report on COVID-19 Impacts

Lime is a key ingredient in mortar and plaster used during construction activities. The rapid growth in the construction and renovation sector was a key driver for the growth of the global lime market in 2019. The construction sector in the US witnessed a growth of 1.7% in

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Adam Ferrari Describes How Technology Will Change the Energy Sector

Startup Fortune, El Segundo, CA: Founder of Ferrari Energy, Adam Ferrari, shares some of the fascinating ways technology will help the energy sector adapt for future generations.

Technology has transformed the way many businesses operate. The energy sector is no exception, with various new technologies making their mark on the industry.

One of the benefits of emerging technology is that it can help facilitate more efficient business practices. As a result, many companies in the energy sector are shifting their business models to integrate digital technology.

As more people become interested in adopting alternative energy sources such as solar and wind, energy companies are now being challenged to identify ways to predict trends for future energy production. This is already happening across many companies, with an increasing interest in improving technology that can predict weather patterns and catalog analytics to better understand energy usage requirements across various regions in

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House Passes Bills to Boost Emerging Tech and Shore Up Cybersecurity of Electric Sector

A batch of bills aimed at improving the cybersecurity and reliability of the energy sector and informing the United States’ use of emerging technologies, such as blockchain and quantum computing, passed the House Tuesday and now head to the Senate for consideration. 

Here’s a rundown on what the bills do.

Grid Security Research and Development Act

With this bill, Reps. Ami Bera, D-Calif. and Randall Weber, R-Texas, propose that Congress put over $800 million within the next five years toward developing tools and resources to strengthen the cybersecurity and reliability of the electric grid. The legislation is meant to make the energy sector more resilient to cyberattacks and physical impacts associated with climate change, such as the recent wildfires on the West Coast.

It calls on the secretary of Energy to establish research and development plans working with the National Science Foundation and the Department of Homeland Security’s Science and

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Micron’s Chart Hints at Chip Sector Improvement

Micron Technology (MU), a manufacturer of memory chips, reported fourth quarter earnings after Tuesday’s closing bell. The report comes amid a decline in chip prices, as the market works its way through a supply glut. 

Micron earned $1.08 per share, on revenues of $6.06 billion. The company was expected to earn .95 cents per share on revenue of $5.3 billion.

Micron has been an underperformer this year. As of Tuesday’s close, the stock was down 4.8% year to date. This compares unfavorably to the S&P 500, which has gained 3.24%, and the Nasdaq, which has gained nearly 30% so far this year. 

COMP CHART
Micron vs. S&P 500 vs. Nasdaq 100. Chart by TradeStation

However, there is good news for Micron bulls. While the major indices have had a tough month in September, Micron has been climbing higher. The relative strength of this stock vs. the major indices has been

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CyberSaint Launches Updates Supporting Financial Services Sector Cybersecurity Compliance and Risk Management Initiatives

New CyberStrong platform updates allow customers to quickly align with the Financial Services Sector Cybersecurity Profile and harmonize compliance standards across FFIEC, NIST, PCI, and others supported by patented automation.

CyberSaint, the developer of the leading platform for automated, intelligent cybersecurity program management, today announced the availability of new features supporting the Financial Services Sector Cybersecurity Profile within the CyberStrong platform, including automated mappings between those standards and the NIST Cybersecurity Framework, FFIEC, and others. These updates are supported by CyberSaint’s existing patented technology, which is used to optimize program performance and eliminate manual intervention for assessments, remediation, and reporting.

The Financial Services Sector Coordinating Council (FSSCC) cybersecurity profile was created by the Bank Policy Institute (BPI), leading organizations, and institutions to fulfill the need for a more efficient, tailored, and easily communicated framework to leverage across the financial services sector. The profile is designed for all financial services organizations

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Sanctions-hit Huawei ramps up investment in Chinese tech sector

SHANGHAI (Reuters) – Huawei Technologies has built up stakes in Chinese semiconductor companies and other tech businesses as the world’s largest telecoms equipment maker bolsters its supply chain in the face of pressure from the United States.

FILE PHOTO: The logo of the Huawei Technologies Co. Ltd. is seen outside its headquarters in Shenzhen, Guangdong province, April 17, 2012. REUTERS/Tyrone Siu

Habo Investments, set up by Huawei in April 2019, has closed 17 deals for stakes in Chinese tech companies since August last year, public records show.

The investment arm was established in response to what Huawei’s rotating chairman, Guo Ping, last week described as “suppression” by the United States after escalating restrictions that have cut off Huawei’s supplies of many overseas chips and effectively barred it from building its own.

“Since Huawei is only one company, we use investment and technology to help our supply chain partners become mature,”

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Ghana hails SGCI’s role in transforming the country’s Science and Technology sector

The government of Ghana has hailed the extraordinary role that the Science Granting Councils Initiative (SGCI) has played over the last five years in helping transform Science, Technology and Innovation (STI) in the country.

Special Advisor to the Minister of Environment, Science, Technology and Innovation, Oliver Boachie in an interview said Ghana’s participation in SGCI has seen the nation benefit from capacity building initiatives, as well as other support aimed at putting STI at the center of national development.

“We have received training on research management using grant management systems. That is a whole process of issuing calls for proposals, receiving proposals, vetting, allocation of resources, management of the resources, tracking of the output and so on.”

The SGCI is a multi–funder Initiative aimed at strengthening the capacities of 15 Science Granting Councils in Sub-Saharan Africa in order to support research and evidence-based policies that will contribute to economic and

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Refinitiv Lipper Chart Of The Week: Tech Sector Funds Fall Out Of Favor

Funds in Refinitiv Lipper’s Science & Technology (tech sector) classification (including both mutual funds and ETFs) suffered net outflows of $1.3 billion for the fund-flows week ended Wednesday, September 23. This was the tech sector fund group’s fifth largest one-week net outflow in its history (Refinitiv Lipper began tracking fund flows data in 1992). As could be expected from this peer group, its performance (both from a fund flows and total return perspective) has mirrored that of the technology-heavy NASDAQ Composite Index.

Similar to the majority of fund asset groups, tech sector funds were hit hard when the impact of COVID-19 took hold near the end of the first quarter. The group closed Q1 with four straight weekly net outflows that reduced their coffers by $1.8 billion. The peer group’s performance followed suit as it retreated 11.1% in March, which was slightly worse than the NASDAQ Composite which finished the

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