frenchee
16 years ago
SherriT, The next strongest sector behind staples and healthcare has been consumer discretionary stocks. Your chart in the iBox shows the Consumer Discretionary SPDR (XLY) testing its 200-day average. It's also still well below its May high. It's too soon too call a bottom in this economically-sensitive group. But several individual stocks in the group are showing signs of having bottomed. For example, Kohls, Jones Apparel, and Radioshack...
Regards,
frenchee
#board-4258 TSP Trend Timing: EFA (I), TLT (F), SPY (C), and $EMW (S)
#board-4256 TLT
frenchee
16 years ago
One half of the puzzle is now put together for a sustained bull run. Just now got to get the financials to outperform the S&P 500.
Up Big Since the Fed
The S&P 500 is now up 3.67% since the 8/4 close prior to Tuesday's Fed Day. Below we highlight sector performance since then as well. As shown, Consumer Discretionary is up the most at 7.07%, followed by Tech (6.35%), Industrials (5.08%) and Health Care (3.79%). Energy, Utilities, Materials and Financials are up the least.
frenchee
16 years ago
Hi SherriT, one of the positive effects of a rising dollar is that it should reverse the global flow of funds into foreign markets that took place in recent years. The US "should" start attracting new funds. Another side effect is continuing weakness in commodity markets. While that's not good for commodity speculators, it's good for the Fed since it eases inflation pressures. That's helps parts of the U.S. market that are inflation-sensitive like consumer discretionary stocks like XLY.
Regards,
frenchee
#board-4258 TSP Trend Timing: EFA (I), TLT (F), SPY (C), and $EMW (S)
#board-4256 TLT