Browse Articles by Section : *Sector Rotation*
Sector Rotation : Week 41/09
October 5, 2009
This week, Consumer Staples (0.08%) is the only positive sector in the market. Financials (-5.24%) lead the sell-off followed by Industrials (-4.95%), Materials (-4.85%), Energy (-4.5%), Consumer Discretionary (-3.49%), Technology (-3.2%), Utilities (-3.16%) and Health Care (-2.39%).
Defensive Sectors such as Consumer Staple and Utilities will likely to benefit from the nervous market as investors shifted their funds to low beta stocks while analyzing the earnings reports in the market.
Look out for the material sector in this coming week. Alcoa and Monsanto earnings report will provide the investors a clue into the future earnings. A strong earnings report with good guidance will be a big boost to the sector.
In conclusion, the market will likely to be extremely volatile as this month might be the tipping point for the market to either finish the year high with style or finish the year low with plenty to worry about.
Sector Rotation : Week 40/09
September 28, 2009
This week, Materials (-3.63%) led the sell-off followed by Financials (-2.73%), Industrials (-2.68%), Consumer Discretionary (-2.56%), Energy (-2.1%), Health Care (-1.76%), Utilities (-1.15%), Technology (-1.06%) and Consumer Staples (-0.32%).
Homebuilders are likely to get beaten up in the coming week after the confirmation of lousy earnings from Lennar Corp, KB Home and Toll Brothers. This coming Monday, Hovnanian will be releasing their earnings report. If they also come out worst than expected, then homebuilders are likely to sell off for the next few months.
Defensive Sectors such as Consumer Staple and Utilities are likely to shine in the next few weeks as investors shifted their funds to low beta stocks. Seasonality stocks should benefit too as we are nearing the last quarter of the year.
Check out our latest monthly report (Financials) at the www.patterntradertools.com. This report will educate you on the best time to invest in Financial Sector. The report will also cover the relationship between the Fed and the Financial Sector. Of course, it will include the Monthly market analysis and market trivia for October 2009. So do remember to grab yourself a copy of the latest newsletter now at www.patterntradertools.com.
In conclusion, the market is likely to be very nervous in the coming week. This will greatly benefit defensive stocks. Also look out for Defense/Aerospace stocks too as the tension in Iran will be in focus in the coming week.
Sector Rotation : Week 39/09
September 21, 2009
This week, Financials (2.85%) led the market followed by Materials (2.66%), Consumer Discretionary (2.32%), Energy (2.19%), Industrials (1.54%), Utilities (1.09%), Consumer Staples (0.51%) and Health Care (-0.93%).
Homebuilders are likely to get a small boost in the coming week if the housing data manages to come out above expectations. A pullback is also highly possible as the 8k incentive to purchase houses will expire at the end of November this year.
The Commodity sector will be taking a back seat in the coming week. The dollar is expected to rebound from its lows, as there are rumors that the Fed might unwind some of the QE programs and even increase the fed fund rate by a quarter point in the near future. Potash cut its yearly guidance and this did not bode will with the sector.
Sector Rotation : Week 38/09
September 14, 2009
Last week, the Energy (5.18%) sector became the leader of the pack followed by Industrials (4.11%), Technology (2.99%), Consumer Discretionary (2.97%), Materials (2.53%), Financials (2.18%), Consumer Staples (1.97%), Health Care (1.51%) and Utilities (0.07%).
One significant area of strength toward the second half of the shortened week was in Transports. Airlines, Freighters and Ships registered the greatest gains by the end of the week, even as the market corrected on Friday. For more on this sector and its many wonderful industries, don’t forget to check out the current Monthly Report on Transports at www.patterntradertools.com.
The crude oil enjoyed a surge last week except on Friday when it fell more than $3 dollars in a day. The market is still searching for a leader week after week. It is as if the market does not seem to know where the smart money is.
This coming week, other sectors such as Consumer Staples and Health Care might take the top spot as the other sectors have become too expensive to invest.
Sector Rotation : Week 37/09
September 8, 2009
Material was the leading sector for last week with a gain of 3.8% followed by Industrial (2.89%), Technology (2.45%), Consumer Discretionary (2.37%), Financials (2.23%), Energy (1.35%), Health Care (1.17%), Consumer Staple (1.02%) and Utilities (-0.28%).
Material was the big gainer due to the effect of rising Gold prices and the weakness of the dollar. Industrial was benefit from the better than expected manufacturing data from the country.
Once again there was no obvious leader in the market for a couple of months as the market search for the leader. So stay cautious especially in the month of September.
Sector Rotation : Week 36/09
August 31, 2009
Financials (1.26%) once again lead the market for the week followed by Consumer Discretionary (1.03%), Industrials (0.55%), Technology (0.25%), Consumer Staples (0.16%), Health Care (0%), Materials (-0.5%), Utilities (-0.64%) and Energy (-1.53%).
This week the Financials leading the charge as majority of the traded volumes in the market revolve around Citigroup, Bank of America, AIG, Freddie Mac and Fannie Mae. Speculators had been busy bidding up all these zombie companies. This kind of rally will unlikely to last long. The market will likely to show its true color in the mid week of September.
This month August, the special report features Transportation. In order to know the health of the economy, one should have an insight of the Transportation. This is because Transportation is the blood of the economy. Seasonality plays a big part in Transportation sector. You will get to know the information on seasonality plays in this coming special report. Furthermore you will have an insight of how the market will likely to behave in the coming month September.
Grab the copy at www.Patterntradertools.com
In Summary, the safest thing to do now is to watch the market behaviors. The defensive sector will likely to fare better than the active sectors such as Financials and Energy in the coming months.
Sector Rotation : Week 35/09
August 24, 2009
Energy (6.68%) lead the charge for the week followed by Financials (6.67%), Materials (5.76%), Industrials (5.42%), Consumer Discretionary (5.03%), Technology (4.42%), Utilities (3.77%), Health Care (3.09%) and Consumer Staples (2.44%).
This week the energy sector lifted the whole market because of the unexpectedly large draw down in the crude oil inventories and the expiration of the front month crude oil contract. Financials had been doing well with the better than expected data from the Existing Home Sales and the bullish speeches from the IMF and Fed Chairman.
More good news will likely to be appearing in the headlines to fuel the stock to a higher ground. The energy sector will likely to be benefit from the surging crude oil price again. However be warn that when the crude oil price went out of control, it can be a denoting bomb to the market and the economy.
In Summary, the safest bet would still be the defensive sector especially the health care sector. The growth of the Health Care sector is very healthy as it did not gained too much in the recent mini bull run. They are unlikely to take too much of a beating too if the market decide to profit take and send it to a lower ground.
Sector Rotation : Week 34/09
August 17, 2009
Consumer Staples (0.41%) led the charge last week followed by Health Care (0.29%), Utilities (0.21%) and Technology (0.05%). Amongst the laggards were Materials (-0.07%), Financials (-0.35%), Industrials (-0.60%), Energy (-0.67%) and Consumer Discretionary (-1.45%).
The market turned cautious last week as it was clearly showing in the leading charts. The top 3 sectors last week were all defensive sectors. As the market took profit from recent gains, the cautious investors moved to park their money into these defensive sectors.
In Summary, the defensive sectors are likely to pick up the pace in the coming weeks as more investors are likely to park their money there. Commodity sectors are most likely to take the worst beating this week as the Chinese government has slowed down its purchases in recent weeks.
Sector Rotation : Week 33/09
August 10, 2009
Financials (7.57%) once again led the charge followed by Industrials (2.95%), Consumer Discretionary (2.75%), Materials (0.2%), Technology (-0.9%), Utilities (-1.06%), Consumer Staples (-1.10%), Health Care (-1.46%) and Energy (-2.1%).
Financial sector had been doing pretty good for the past 2 weeks. The better than expected GDP report and employment data had helped the financial sectors to surge higher. Good earnings reports from the financials sectors had been a catalyst too.
Housing benefited from the improved economic situation. Housing data such as pending home sales, new home sales and existing home sales are suggesting that housing activities have started to pick up in recent months.
In summary, the market is likely to trade sideways in the coming weeks as there were only 3 sectors in the green previously. The market will find itself in a bad way if the financial sector cannot keep up with the gainers.
Sector Rotation : Week 32/09
August 3, 2009
Financials (3.09%) led the market last week followed by Industrials (1.44%), Materials (1.08%), Consumer Discretionary (0.72%), Consumer Staples (0.33%), Technology (0.25%), Health Care (-0.04%), Energy (-1.44%) and Utilities (-1.87%).
Once again the market is still searching for a sector to lead the market out of the economic slump. There is no major sector at the moment as is clearly shown in the weekly leadership chart. The trend will likely to continue till the month of October when the liquidity in the market back to normal again.
In summary, most of the sectors will be flat in the coming week with Energy and Housing as the exception. These 2 sectors are likely to be benefit from the good earnings in the coming week.
