Wednesday, 25 April 2012
US Market switching to defensive sectors?
Dear Friends, saw this article that mentions a Sector Rotation happening in US market now to defensive sector... In fact our market sentiment indicator of Technological stocks also indicate bearishness
One of the ways to measure the mood of the stock market is to see what sector rotations are taking place beneath the surface. The chart shows that sector rotations over the past month reflect a market mood that is turning more defensive. The four sector lines are plotted "relative" to the S&P 500 which is the flat black line. In other words, the four sector lines are relative strength ratios that measure their performance "relative" to the S&P 500. The blue line shows the Technology SPDR (XLK) leading the market higher since the beginning of the year. Technology leadership is a good thing for the market. The XLK:SPX ratio has started to drop during April, however, which shows short-term loss of that leadership.
In fact, technology was this week's weakest sector. The other three lines show the relative performance of the three defensive sectors which are consumer staples (pink line), healthcare (green line), and utilities (red line). Those three sectors underperformed the S&P 500 since December as the market rallied. Notice, however, that those three relative strength ratios have turned up over the last month. In fact, utilities, healthcare, and staples were this week's three strongest sectors. That's normally a sign that investors are turning more defensive and are protecting themselves from a possible market correction.
· 美国 股市担心苹果业绩，巴菲特却大胆投资！ 道琼斯昨晚闭市在 25080 ，掉了 205 点。在这 10 月 11 月道琼斯的波动都相当大。有很多投资朋友开始怀疑熊市是不是已经来临了。我的答案是还没有。这个跌幅反而是好时机进场。大家不用太担心。 ...