Over the past two weeks, there has been a distinct shift in investor preference towards large cap stocks. As a result, and because of Fidelity's preference for small caps in many of their sector funds, there are currently only about half as many Select Funds generating positive upward momentum that is greater than that of the S & P 500 than there were a few weeks ago. Quite a sentence !!!
Current Intermediate Term rankings:
Devel. Comm.
Brokerage
Technology
Computers
Electronics
Financial Services
Leisure
Insurance
Software
Transportation
Current Short Term Rankings:
Technology
Devel. Comm.
Brokerage
Software
Computers
Electronics
Leisure
Financial Services
Utilities
Construction
Insurance
Telecommuncations
Home Finance
All Energy, Gold, Environmental and Natural Resource funds went into Sell territory back around November 10th, and remain rated as Sells at this time. Biotech, Food, Bus. Svcs., Health Care, Med. Systems, & Defense are still weak, but have not fallen far enough to generate a Sell. All other sectors are rated as Holds for those who currently own them.
With market establishing a double top with the July peak, one can expect more back and forth activity near these levels until things head in one direction or another with conviction. One sign of (a) market weakness, or (b) more upside potential, are the small number of new highs when the market set a record this week vs. the enormous number of new highs when the Dow peaked in July.
Have a great Thanksgiving !!!
Bernie |
