Sector Rotation : Week 27/09

Financials led the gainers last week followed by Materials (4.32%), Health Care (2.97%), Technology (2.77%), Energy (2.44%), Industrials (2.38%), Consumer Discretionary (2.32%), Utilities (1.28%) and Consumer Staple (1.01%).

Health Care has been slowly gaining momentum amid the reforms. This reform will bring opportunities in the future for this sector. The good news is that the health care sector will not get the full blast from a bear market sell off.

This coming month, July will feature a volatile sector with good potential upside. This commodity in this sector is so significant that countries go to war for it just as civilizations past used to go to war for gold. So precious is it that U.S. decoupled its dollar from gold for it. The price of Oil is watched very closely as its movement will move markets. Its price is indicative of the rate of inflation. The recent tension in Iran and the attacking of oil pipes in Nigeria have a major influence on the oil prices.

The Organization of Arab Petroleum Exporting Countries (OPEC) is a cartel of twelve countries, which accounts for two-thirds of the world’s oil reserve, 33% of the world’s oil production, affording them considerable control over the global market.

In summary, the oil and energy sectors are expected to benefit in the future as oil is a depleting resource that is widely used and consume by the world.

To find out more about the Oil and Energy Sectors, you can go to Pattern Trader Tools’ monthly special report section at:
http://www.patterntradertools.com/?cat=22 .