Replies to post #602 on Profunds index and sector trading (PRO)

[was Steve]

Hey George,
Wanted to open your eyes to the sector world again. I know you like the indexes, but the sector funds can provide some great returns too.

i have calculated the % gains from recent lows to closes on friday and put them in descending order. in that 8 day period , the following could have been gained if got in at the low and out at the close friday ( someday ill do that. (yeah right!!!).

ndx 29.2
semi 29.0
internet 28.1
dow 27.9
spx 25.0
basic mat 22.6
telecom 20.5
midcap 20.2
financial 18.8
rut 17.8

NDX is the stud of studs in this 8 day period, but spx and down have been coming up faster in the last three days. indexes took 3 of the top 5 spots. But sectors got the silver and bronze for second and third place.

currently the sectors are only weighted 1.5X whereas the ndx, spx and dow are 2x. So despite that significant handicap, the sectors were very well represented in the top 3 spots. Should profunds ever bump the sectors up to 2x, i would trade them more often than the indexes.

In case you werent aware i have links to all the sectors that the sector funds track that can be monitored durning the trading day, to watch for buy signals ( daily and weekly charts). I also provide a link with the actual sector funds( daily and weekly charts as well). But as you know these are only updated at the EOD after the close.

Steve