Last week's market summary stated "Although the market pulled back last week... this is but a temporary pause before the market resumes moving higher, most likely after the Fed meets this coming Tuesday and Wednesday."
Can you nail it any better than that?
Last week the markets surged higher after the Fed announced it would begin scaling back their purchases in mild increments. For the week the Russell 2000 gained 3.6%, DJIA 3.0%, the Nasdaq 2.6%, and the S&P 500 2.4%. In addition to the Fed announcement market enthusiasm was spurred by more positive economic data: industrial production for November jumped 1.1%, above the consensus range of 0.2% - 1%, and on Friday annualized real GDP growth was unexpectedly revised sharply higher from 3.6% to 4.1%.
The blog's calculations of sector performance validate the preference for tech; the blog calculates the top performing sectors last week were, in order: Software +5.2%, Computer +5.1%, Internet +4.7%, and Semis +4.5%. Summary: Last week's market surge indicates the path of least resistance is higher. All good things come to an end at some point; but this blog strives to make data driven - not opinion driven - analyses and right now the data indicates this market is moving higher.
Industry Group Performance:
As noted above software related stocks had a monster week with 8 of 10 groups ranked in the top 50 based on trailing 1 week price performance. This performance is detailed in the table below, sorted by 1 week price performance:
Computer: With the exception of the Apple dominated Computer-Hardware/Perip group, computer related industry groups also had a very strong week. This performance is detailed in the table below, sorted by 1 week price performance:
ALLT also looks interesting. +9% last week and has an "A" sponsorship grade. 23% off its 52 week high but has FY '14 EPS forecast +330%.
Note: The blog will probably take next weekend off, hence the next publish date would be Sunday, January 5, 2014.
All data and charts displayed here are the property of MarketSmith, and are published here with their permission.
The Sector Trends blog does not make forecasts and does not cheerlead with its commentary. The perspective offered is on current trends in the market, which sectors and groups are rotating, and which stocks from these groups are likely to perform best in a neutral/positive environment. Readers need to provide their own assessment of market health, employ their own risk management strategies, and trade accordingly. In a declining market nearly all equities will suffer, including those found listed here.
Peter is that true, that ALLT's FY14 EPS is projected to be 330% higher than FY13? wow....if so then something has to give....I mean if PKT is stealing market share and ALLT is projecting 330% eps growth then shouldn't PKT's guidance for FY2014 be strong?
If PKT has "several paths" to meet Q4 earnings estimates and they can come out with another 30% growth for 2014 then this Q4 earnings call could be something special.....
meanwhile if that eps figure for ALLT is true I may have to dip a toe in there as well.....