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Archive for July 12th, 2008


New Sector Strength Table July 12, 2008

Starting today, I am introducing a table that tries to capture the current strength of each of the sectors.

I will publish this table every day as part of either my Sector Summary, or my Stock Market Summary post.

Take a moment to digest the information below. There are some notes below the table that may be helpful.

Ticker -13wk -12wk -11wk -10wk -9wk -8wk -7wk -6wk -5wk -4wk -3wk -2wk -1wk Today Fund Name
XLB 67 70 71 66 66 72 73 67 64 55 57 45 32 27 Materials
XLE 66 73 76 71 71 74 77 70 65 63 63 62 60 43 Energy
XLP 67 65 65 63 65 66 63 59 63 52 39 33 28 33 Staples
XLF 48 46 51 61 65 60 50 38 31 26 26 22 19 19 Financial
XLY 53 48 53 58 65 68 66 57 54 40 36 27 23 21 Discretionary
XLV 37 37 36 39 49 53 55 54 60 38 35 31 33 41 Health Care
XLI 68 61 63 69 71 73 70 61 59 42 34 26 23 23 Industrial
XME 66 70 71 66 69 73 76 72 74 70 75 74 63 48 Metals & Mining
XLU 51 62 67 66 66 66 71 73 71 66 69 63 58 54 Utilities
XLK 57 58 68 69 72 74 71 69 70 61 54 37 27 26 Technology

 

How to best interpret this table?

Start by moving your gaze to the far right of the table.

There is a row for each of the sectors and their respective names are  in the "Fund Name" column.  The column, right next to it, labeled "Today" contains the score for each sector as of today.

The remaining columns that are labeled ‘-nwk‘ contain the score for the same sector n weeks earlier.

How to use this table profitably in your trading regimen?

The benefit of seeing the sector scores in such a time-varying format is that you can see sectors fade-in and fade-out of glory.

You can use this table to spot classical Sector Rotation and hopefully be able to implement a successful Tactical Sector Allocation strategy. I may publish some information on this at a later date.

The sector score formula itself is proprietary. However you are encouraged to give a shot at reverse engineering it.

As always, if you have any suggestions that may be useful, feel free to drop me a note.

July 12th, 2008 in Consumer Discretionary, ETF, Energy, Finance, Industrials, Materials, Metals, Mutual Funds, Retail, Stocks, Technology, Transports, Utilities |