Very interesting occurence with Energy Services yesterday. The fund plunged at the opening to 30.04 at 10 AM, lowest point since last peak. After that, until end of day, it increased by 2.4% to close at 30.77. Reviewing all other Selects, this was largest increase from intraday low (most funds at 10 AM, a few at 11 AM) until close. Next best were Software & Reg. Banks with 1.1% gains. Still looking for definitive technical signs of a bottom, and while obviously too soon to tell, but there were obviously some buyers coming back in yesterday.
If Fidelity's diversified fund managers have been dumping energy services and tech stocks as rumored, then they are locking in their big gains for the year while driving down the prices of their Select funds at the same time. It is doubtful that the Select managers are doing the same thing and running to cash, since that would contradict their presumed 100% invested policy. Either way, if this selling has occured, it is creating excellent bargain basement prices for the managers of the tech & energy related Selects. Unfortunately, no way to tell when they, or anyone else who reacted similarly in response to this rumor, will finish their selling and induce buyers to get back in. We will just have to keep an eye on things and be patient. Balance of this week hard to predict based on Holiday and low volume, but stability in Japan overnight has got to help.
Bernie |
