Saturday, March 27, 2010

Weekly Sector Report | Expanded View (W/E 03/26/10)

Perspective is everything, and we gain perspective by comparing one thing to another. I wanted to build some sector and market perspective for you. How? By providing you with the following:

  • time series of when different sectors peaked1
  • current retracement to peak in absolute terms1
  • percentage decline from peak to trough
  • percentage of points lost retraced
  • percentage retracement to trough

1 contained in Table 1 below

Table 1

There are a couple of things that are notable from this chart

  • It has been more than three years since the financial sector topped
  • There was 16 months from the topping of the first sector (Financials) to the last sector (Commodities)
The next table, Analysis of Sectors: Peak, Trough and Comparison to Total Stock Market Index (sorted by % gain from trough), will give you view of the sectors that have recovered the most since their trough:

Table 2

Now that I've provided you with that, we'll return to our previously schedule program. Below are the 24 Summary Sectors. You can find the complete report on the 164 DJUS Sectors in addition to weekly + daily chart books for the sectors below here.

I hope that you found this expanded report helpful to providing to you some perspective on relative time and price performance among the 24 sectors that I highlight for you each week. You can also see the disparate nature of BOTH time and price performance through a major cyclical decline and recovery. While this information is unlikely to make interesting cocktail conversation, it is a useful mosaic of information to inform your investing/trading thinking.

I will post periodic updates to the peak/trough tables.

All data courtesy of | Compilation and analysis courtesy of me.