Abet Chichi2

[chichi2]

The Nine (9) Major Sectors of the Economy

Sector Charts are at end, 10min and Daily Charts, side_by_side.




This theoretical model is based on
Sam Stovall's "S&P's Guide to Sector Rotation"
http://www.amazon.com/exec/obidos/ASIN/0070522391/qid=966178673
and states that different sectors are stronger at different points in the economic cycle. The graph above shows these relationships and the order in which the various sectors should get a boost from the economy. The Market Cycle preceeds the Economic Cycle because investors try to anticipate economic effects. The PerfChart at the top of this page tries to help you see this effect.

 
 Stage:   Full Recession   Early Recovery  Full Recovery  Early Recession      
  
 Consumer     
 Expectations:  Reviving   Rising          Declining      Falling Sharply 
  
 Industrial    
 Production: BottomingOut  Rising          Flat           Falling 
  
 Interest    
 Rates:      Falling       BottomingOut    RisingRapidly  Peaking 
  
 Yield    
 Curve:      Normal        Normal(Steep)  FlatteningOut     /Inverted 
 

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The Nine (9) Major Sectors of the Economy (presented left to right, and down is Economic Rotational experience)
XLY, XLK, XLI, XLB, XLE, XLP, XLV, XLU, XLF
(Each of these is an ETF, and is Tradeable.)

XLY= Consumer Discretionary XLK= Technology
XLI= Industrials XLB= Materials
XLE= Energy XLP= Consumer Staple
XLV= Health Care XLU= Utilities
XLF= Financials

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"How Are the 9 Major_Sectors_Doing?" Thanks to ZigZagMan 03/27/09
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=36611234

Todate Performance Graphs (you can pick Starting Date by moving the slide indicator to the date time you want comparison)
http://stockcharts.com/charts/performance/perf.html?xlf,xly,xlp,xlv,xli,xlu,xlk,xlb,xle

Below Side by Side Charts include Bollinger Band and EMA50 indicators.
The CenterLine of Bollinger Bands are SMA20 indicators. So we have an interesting Oscillator in effect between the SMA20 and EMA50 indicators. Watch them Crossover for indications of special advise, such as change in Trend. Outside Bollinger Band Boundaries are 2 sigmas from centerline. Pinching of the bands usually predicts a nice move is coming.
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