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?" by Chi2 09/29
Http://investorshub.advfn.com/boards/read_msg.aspx?message_id=32524487

Todate Performance Graphs (you can pick Starting Date)
http://stockcharts.com/charts/performance/perf.html?xlf,xly,xlp,xlv,xli,xlu,xlk,xlb,xle

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