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.
