Key-Read First
DESCRIPTION: The Performance List is a summary of today’s market action, with an emphasis on the action of the previous two-days combined. The list will sometimes include a comparison of intraday action, and/or emphasize the action of the previous three-day, five-day, or ten-day combined. A comparison over a a few days enables one to find money flows and where flows are ebbing allowing one to adjust one’s strategy. By the way, divergence and convergence occurs among all these indexes. Some indexes are correlated and some are negative correlated. The Dow Jones Index might be way up while the NASDAQ might lag. The US markets might experience money flows while specific foreign markets or emerging market might experience much greater money flows. What’s my point? Money flows and ebbs, therefore additional research on your part is highly recommended.The Performance List is composed of five sections. The first section is the Sectors and Industry Indices (items 10 to 96). The second section is the Major US Markets and Select Indices (items 102 to 145). The third section is the Foreign Markets Section (items 150 to 160). The fourth is the Short and Ultra Short section (items 170 to 188) and the fifth section is the Ultra (item 190 to 202).The Sector and Industry Indices Section (items 10 to 96) is composed of the 9 market sectors, indexes, highlighted by one related SPDR. Items 10 to 16 include some of the ETFs and indexes related to the Discretionary SPDR Sector. Items 17 to 29.5 include some of the ETFs and indexes related to technology including the Tech SPDR. The Technology Sector includes disk drives and broadband. In addition, each sector is color coded to enhance the connection among related ETFs and indexes. For example Technology is colored Pink. Only the SPDRs are coded yellow. So why not just compare the nine SPDR ETFs? Simple. Each SPDR is too broad to find a harvest opportunity. Thus, to include specific industry ETFs and indexes allows one to drill deeper and find where the money is flowing. For example, the technology sector might be up for several days or weeks, but some industries within the tech sector might lag while other industries are up like space rockets because hot money (growth) is flowing into these industries. To learn more about the 9 SPDRs or for a precise description of each SPDR go the following website:
- http://www.sectorspdr.com/aboutspdrs/
Major US Markets and Select Indices: (items 102 to 145) This section is composed of the Major US Markets such as the NASDAQ, and indices such as the Dow Jones Utilities. The Major US Market section is color coded blue. Foreign Markets Section: (items 150 to 160) In addition to the domestic industries and markets, you will notice the list also includes foreign market indexes, which are colored light green.UltraShort Section: (items 170 to 188) The third group is composed of ETFs, which negatively correlated to their respective industry or market index and are color coded red. While the market might experience a sell off, harvest opportunities abound in these UltraShort ETFs. Tracking this section provides an opportunity to offset stock losses. The fourth group will include ultra longs, which I will add in a few weeks.Ultra Section: (item 190 to 202) This group is composed of ETFs, which correspond to twice the daily performance of their respective industry or index and color-coded green. While the market might experience a move to the upside these sectors will twice as faster than the markets or their respective index. For a detailed description of each ETF, go to the particular fund.HARVEST VS OPINION: The blog’s objective is to find out where money is flowing, and as an approach to compare the talking heads opinions about the state of the market and economy; it is in a recession, early recovery, full recovery, early recovery. Or, as some talking heads describe the cycle, market bottom, bull-market, market-top, bear market. Money flows can last weeks allowing one an entry during a brief ebb. By implication this blog’s approach buys into Sam Stovall’s S&P Guide to Sector Rotation but is more focused on where the money is flowing. For more information about sector rotation go to the following websites:
- http://stockcharts.com/charts/performance/SPSectors.html
- http://www.thestreet.com/funds/smarter_up/10215839.html
NOW WHAT: The ebb and flow of sectors, industries, and foreign and domestic is a constant moving target therefore further research on your part is highly recommended. The information shared on this blog does not necessarily predict future action or future volatility.TITLE: The Sector Harvest title is meant to suggest that everyday opportunities exist in the market just like harvests take place everyday somewhere in the world. The title is also is meant to suggest that one must stay focused on finding opportunities and changing ones strategy when harvest opportunities flow and ebb. The title is meant to prevent the mind from getting stuck in the mental and emotional trap of bull or bear market. Lastly, the title is meant to suggest that further research on your part is paramount.
