Commercial & Professional Services Industry group set to outperform

This obscure sounding group of stocks is one of the 24 S&P Industry groups within their Global Industry Classification Standard (GICS). It sits within the Industrials sector (there are 10 GICS sectors).

Stocks within this group can be found on http://money.cnn.com/data/sectors/commercial_services/

S&P Comm & Prof Svs Index vs. S&P 500 Index

• The MACD has crossed above zero for the first time since June 2009, fitting the criteria of looking for moving averages that have not crossed for over four years
• There is also a bullish divergence on the MACD (this was not the case for the 2008 crossover that failed to hold)
• The ratio is testing the top of a base that has formed since late 2012

Here is the sector against some of the other S&P Industries.

S&P Comm & Prof Svs Index vs. S&P Software Index

The moving averages have crossed for the first time since early 2009, with a potential base having formed since early 2012

S&P Comm & Prof Svs Index vs. S&P Media Index

• There has been a downtrend since early 2009
• In late January, the ratio made an 18 month high but has since pulled back into the base
• The MACD has not yet crossed

I’ll have to leave finding stock candidates today. There does seem to be some overlap with the media sector in the money.cnn lists.