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ING Groep N.V. Message Board

  • jpomper jpomper Dec 4, 2011 4:03 AM Flag

    Sector rotation ?

    In the last 10 days the sector indexes (XLI, XLK XLF, etc) seem to change their position compared to allsector average SPY. Looks like a sectro rotation started.

    1) XLE index (Energy) seems to underperform the SPY market Average, by 0.5%, in the 10 days. Compared to the former 1 year period, Energy outperformed SPY by 7%. Looks like energy is losing its leading (defensive) position amid sectors. Utilities (XLU) also lagged to SPY MarketAverage by 1.8%.
    This is quite tipical at the very bottom of the cycle.

    2) XLF (Financials) for the first time since years, outperformed SPY by 1.2%, in the last 10 days.
    XLY (Discretionary) also outperformed by cca. 1%.
    XLI IIndustrials) also slightly outperformed.

    At the start of the upward cycle, XLF and XLI ususally shuld outperform.

    3) This might be coincidence, or Xmas shopping effects, or just the usual yearend tax effect starting earlier than usual. Or maybe the stockmarket signals that the recession might come to end in a couple of months.

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    • Somebody else also noted the change:

      7 Best Performing Industries:

      Building Materials +12.4%
      Homebuilding +12.0%
      Retail Building Supply +10.5%
      Oil/Gas Distribution +9.7%
      Newspaper +9.6%
      Electrical Equipment +7.6%
      Human Resources +7.4%+7.4%

      7 Worst Performing Industries

      Healthcare Information -14.6%
      Shoe -13.2%
      Biotechnology -12.2%
      Wireless Networking -10.4%
      Power -9.9%
      Entertainment Techn. -8.8%
      Internet -7.6%"

11.52-0.210(-1.79%)May 5 4:02 PMEDT