Monday, February 14, 2011

Weekly Sector Report | 02/11/11

Sorry to be late out of the gate on this week's sector report.  The broad market index advanced 1.6% for the week and 5.79% year to date.  Also, the broad market is just 4.94% below September 2007 levels.  Let's take a look at the sectors (click on all images for enhanced viewing):

At the subsector level, here are the 10 top/bottom performers:

As you can see, the super-sexy Tire industry was a big winner, and Auto Parts has resurged again after a correction.  There are not many tickers in the tire industry.  Here's a snapshot from the WSJ Industry Page

One of the reasons I enjoy reviewing sector performance is that it forces me to poke about and find names that might be performing outstandingly, yet are flying below the radar.  TWI is one such name I am familiar with.  I'm not in this name currently, but I thought it a nice stock to highlight.  Let's look at the chart:

It has more than doubled since September.  One way to look at the headline movers, in this particular case, agricultural stocks/equipment, is to think about ancillary participants.  TWI makes the tires that go on the equipment.  Getting to know stocks in moving sectors and to think about stocks in supplying sector, can help you pinpoint some attractive opportunities as they unfold.

We will close with the broad market index which has successfully cleared its volume bar hurdle:

I've prepared for you a chart book: