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Strategies & Market Trends : Fidelity Select Sector funds -- Ignore unavailable to you. Want to Upgrade?

To: Dennis who wrote (671)	1/29/1998 7:21:00 AM
From: Bernie Kaplan	Read Replies (2) \| Respond to of 4916

In recent days, we have seen the development of a few extremely encouraging trends in the stock market. First, Asia has calmed down considerably, and despite the political confusion in Washington, there has been a significant improvement in the near-term investment climate. Second, investors have responded very positively to the latest earning reports, which have been surprisingly strong across numerous sectors of the market. Finally, the technology oriented market measures have been gaining considerable momentum lately, and the Nasdaq 100 and the Nasdaq Composite have clearly been dominating the S & P 500 and the Dow Jones Industrials. In total, while I would not be surprised at all if the market paused to catch its breath today, sentiment is as positive as it has been in a while, and the market's bias at this time is definitely pointing to the upside. As a result, the charts of a number of Select Funds have improved to the point where they can now be considered to be viable purchase candidates. Foremost among this group are the four major high tech sectors, which are all being elevated to OK to Buy status this morning. Within this group, the Computers and Technology funds have been the strongest performers lately. The Software fund is also doing quite well, but is traditionally a more sedate performer. Yesterday's surge by the Electronics fund was extremely impressive, so you may want to keep a little powder dry, just in case this traditionally explosive sector really takes off from here. The other funds that are also receiving New Buy signals today are Industrial Materials, Natural Resources, and the Paper & Forest fund. Among those funds that are currently in Buy territory, Air Transportation, American Gold, Defense & Aerospace, Health Care, and Precious Metals are now being rated as OK to Buy. On the other hand, Biotechnology, Telecommunications, and Utilities Growth continue to be rated as Holds. I am especially pleased with the charts of the Defense & Aerospace fund, and the gold related sectors still look like good options for a nominal investment, despite the strong gains they have already made over the past few weeks. I am also encouraged by the recent performance of some other sectors, although their charts have not improved to the point where Buy signals can be issued. Among this group are Brokerage, Cyclical Industries, and the Financial Services fund. In other areas of interest, the energy sectors still need to show much more improvement before they can be considered for investment. The consumer related sectors have been very unimpressive lately, and many of the interest sensitive sectors are still acting way too inconsistently. Bernie Kaplan