Category: Sector Analysis
The analysis published under this category are as follows.
Sunday, January 18, 2009
Airline Sector Stocks: The Death of a Bear Market / Stock-Markets / Sector Analysis
By: Daniel_Smolski
Anyone who has recently flown can probably attest to the feeling of uneasiness, loss of control and an overall uncomfortable feeling that grips one, as they step into an airport and submit themselves to the grueling process of check-in and boarding. The deregulation of the airline sector in the late 1970s has brought prices down so greatly, that it flying is now available to the masses. This has resulted in airports growing to mammoth-sized structures resembling small cities. Read full article... Read full article...
Friday, November 28, 2008
Healthcare Stocks ETF Looking Robust / Stock-Markets / Sector Analysis
By: Mike_Paulenoff
Many of the major components of the SPDR Select Healthcare ETF (AMEX: XLV) have been acting well technically and exhibiting patterns that argue for more upside directly. These include Johnson & Johnson (JNJ), Merck (MKR), Pfizer (PFE) and Eli Lilly (LLY). Let's expect continued strength in the ETF that next confronts a key 8-week resistance line, now at 25.35/40. If hurdled that will trigger upside follow-through towards my optimal target zone of 27.20/60.Read full article... Read full article...
Monday, August 04, 2008
Basic Materials Stocks Sector Getting Clobbered / Stock-Markets / Sector Analysis
By: Mike_Paulenoff
Wow?Basic materials names are getting clobbered, as evidenced by the vertical thrust of the ProShares UltraShort Basic Materials ETF (SMN), whose major inverse holdings include Monsanto (NYSE: MON), DuPont (NYSE: DD), FCX, and others. The ETF is now assaulting its declining 200 DMA at 37.80. Today's close will be very important for the SMN. Above 38.00, and let's expect upside continuation to 44.25/50 next.Read full article... Read full article...
Tuesday, July 15, 2008
Consumer Discretionary Spending Sector Leads Stock Market Tops and Bottoms / Stock-Markets / Sector Analysis
By: Donald_W_Dony
The spending habits of the largest single element of the economy can provide important information as to the major peaks and troughs of the stock market. The consumer, which equals about 2/3rds of the economy, plays a vital role in the business cycle. The normal contraction and expansion of the economy often requires the consumer to shift their spending to reflect the current state of the economy. This shifting of spending habits between discretionary and staples provides valuable clues to the major peaks and lows of the stock market. Read full article... Read full article...
Thursday, July 10, 2008
Protect Your Stocks Portfolio- Industries to Avoid, Industries to Buy / Companies / Sector Analysis
By: Mike_Stathis
While some of the recommendations in this commentary may seem like no-brainers, its real purpose is to illustrate how investment themes relate to the bigger picture.
U.S. Auto Industry: AVOID
Most of you are familiar with the history of the U.S. automotive industry. If you aren't, all you need to do is look at Detroit 's decline since the 1950s when it once stood as a great city with a strong economy. Once the world's envy, the Big Three became embattled in a struggle between labor unions and foreign imports in the 1980s.
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Wednesday, June 25, 2008
Expansive Monetary Policy Bullish for Small Cap Stock Performance / Companies / Sector Analysis
By: Joseph_Dancy
Numerous studies have presented evidence investors receive excess returns, or an investment premium, when investing in small and micro capitalization stocks. The findings indicate that even after considering the higher risk associated with investing in the small companies the small cap sector generates excess returns on a risk-adjusted basis.Read full article... Read full article...
Thursday, April 24, 2008
Retail Stocks ETF Punches Through Resistance / Stock-Markets / Sector Analysis
By: Mike_Paulenoff
This is what I wrote for subscribers yesterday about the Retail HLDRs ETF (AMEX: RTH), and there is no change in my outlook right now: The RTH appears to me to have ratcheted up into a higher trading plateau between 93.00 and 96.00 from 92.00 to 96.00, as the price structure pushes towards a confrontation with a cluster of resistance that is represented by its 9-month down trendline, the declining 200-day moving average, and a 5-month plateau of prior failed rally peaks at 96.00/65.Read full article... Read full article...
Monday, March 31, 2008
Return Persistence & Future Stock Performance: Are Momentum Strategies Effective? / InvestorEducation / Sector Analysis
By: Joseph_Dancy
Return persistence – the tendency for stocks to trend in the same direction – has been the topic of a number of academic studies. Many academics, and a number of portfolio managers, adhere to the theory that the market is reasonably efficient. As such, historical stock prices should reflect the sum of public knowledge and should have little predictive value of future stock price movements. Many value managers adhere to this theory. The fact that some studies show that stocks tend to trend on one direction is therefore puzzling to these researchers. Read full article... Read full article...
Tuesday, February 12, 2008
Homebuilding Stocks ETF Holds Support / Stock-Markets / Sector Analysis
By: Mike_Paulenoff
The Homebuilders Select SPDR (AMEX: XHB) managed to hold support in the 19.70 area again, creating a minor double-low" with Friday afternoon, and setting up a potentially strong upside acceleration if the price structure hurdles 20.85-.90 later this afternoon. My technical work argues in favor of such a constructive move, which projects the XHB to climb towards a test of its prior rally peak at 23.60 from 2/01. Only a decline that breaks and sustains beneath 19.70 will neutralize my current outlook.Read full article... Read full article...
Saturday, February 09, 2008
Healthcare, Industrials and Consumer Discretionary Investing Themes 2008: A Tale of Two Halves - Part 5 / InvestorEducation / Sector Analysis
By: Hans_Wagner
The beginning of a new year is a good time to make a new assessment of the important investment drivers and themes for the year. If you want to beat the market it is important to understand what is driving the markets and where the best sectors are to find good opportunities. By identifying these factors you will have a solid framework to assess the impact market movements and news events on your investment strategy. This is the fourth of a five part series on the outlook for the 2008 markets. The first part discussed the key drivers ending with a mention of what sectors will benefit and those that will be hurt. This Part discusses the Materials and Utilities sectors. Part 2 discussed Energy and Financials, Part 3 reviewed Technology and Consumer Staples. Part 4 presented the Materials and Utilities sectors. Read full article... Read full article...
Wednesday, February 06, 2008
Sector Rotation for Recession - Lessons from the Business Cycle / Stock-Markets / Sector Analysis
By: Donald_W_Dony
In their never ending pursuit to uncover the next undervalued company, portfolio managers and investors often forget how equities, as a whole, fit into the stock market and business cycles. Though it is important to focus on the individual issues, it is never wise to forget about the surrounding environment and its positive or negative influences.
The basic pattern of the business or economic cycle has four steps. These steps, though never exactly unfold the same during each cycle, the basic structure remains firm and should be remembered.
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Tuesday, January 29, 2008
Stock Market Top Identified by Business Cycle - Rotate Sectors for Growth / Stock-Markets / Sector Analysis
By: Donald_W_Dony
The rhythmic rise and fall of equity sectors throughout the business cycle has told economist, analysts and investors for decades the positions of the economic and stock market cycles. Certain equity sectors typically advance at different phases of the cycles which provide important clues and can dramatically assist in portfolio performance. For example, financial's normally lead the stock market and are one of the first to decline before the market top and one of the first to advance in the late bear phase. The transportation sector is also one of the strongest performing groups in the early bull market but usually rolls over at the top signaling the end of the bull market is near. Read full article... Read full article...
Friday, January 25, 2008
Technology and Consumer Staples Investing Themes 2008: A Tale of Two Halves - Part3 / Companies / Sector Analysis
By: Hans_Wagner
The beginning of a new year is a good time to make a new assessment of the important investment drivers and themes for the year. If you want to beat the market it is important to understand what is driving the markets and where are the best sectors to find good opportunities. By identifying these factors you will have a solid framework to assess the impact market movements and news events on your investment strategy. This is the third of a five part series on the outlook for the 2008 markets. The first part discussed the key drivers ending with a mention of what sectors will benefit and those that will be hurt. Part 2 reviewed the outlook for the energy and financials sectors.