Using the top down method, I provide a summary look at Industries/SuperSectors/Subsectors. This gives the reader a feel for sector rotation based on relative performance of the Industries/SuperSectors/Subsectors against the total stock market index ($DWCF). Not the S&P; not the Dow, but the total market.
I use the hierarchy in the following resource which you can download from the literature page that is linked: Dow Jones Sector_Classification_Structure. Most charting services have some rendition of the Dow Jones Tickers that map to these sectors. Here are the major Indistries:
Industry | SuperSector Code
|
Name
|
|
00
|
Oil and Gas
|
|
1x
|
Basic Materials
|
|
2x
|
Industrials
|
|
3x
|
Consumer Goods
|
|
4x
|
Healthcare
|
|
5x
|
Consumer Services
|
|
6x
|
Telecommunications
|
|
7x
|
Utilities
|
|
8x
|
Financials
|
|
9x
|
Technology
|
|
Not all industries have SuperSectors (e.g. Oil & Gas has no SuperSectors). The SuperSector is keyed off of the 2nd digit. Accordingly Basic Materials SuperSectors are 1300 Chemicals, and 1700 Basic Resources. Below those are Subsectors. Under 1300 Chemicals, there are two subsectors, 1353 Commodity Chemicals and 1357 Specialty Chemicals.
The numbers that I use come straight off of the hierarchy. I consider the sectors in the table above to the the "Mother Sectors". From that spawns the SuperSectors, and from SuperSectors the Subsectors are spawned. Below are the 23 Major Industries/SuperSectors with the Total Stock Market Index. REgretably, Stockcharts does not have the Real Estate SuperSector in the $DWXXX format.
Ticker
|
DJSECTOR
Code and Name
|
$DWCF
|
0000 Total Stock Market Index
|
$DWCOGS
|
0500 Oil & Gas
|
$DWCBSM
|
1000 Basic Materials
|
$DWCCHM
|
1300 Chemicals
|
$DWCBSC
|
1700 Basic Resources
|
$DWCIDU
|
2000 Industrials
|
$DWCCNS
|
2300 Construction & Materials
|
$DWCIGS
|
2700 Industrial Goods & Services
|
$DWCCGS
|
3000 Consumer Goods
|
$DWCAUP
|
3300 Automobiles & Parts
|
$DWCFOB
|
3500 Food & Beverage
|
$DWCPHG
|
3700 Personal & Household Goods
|
$DWCHCR
|
4000 Health Care
|
$DWCCSV
|
5000 Consumer Services
|
$DWCRTL
|
5300 Retail
|
$DWCMDI
|
5550 Media
|
$DWCTVL
|
5700 Travel & Leisure
|
$DWCTLS
|
6000 Telecommunications
|
$DWCUTI
|
7000 Utilities
|
$DWCFIN
|
8000 Financials
|
$DWCBNK
|
8300 Banks
|
$DWCINS
|
8500 Insurance
|
$DWCFSV
|
8700 Financial Services
|
$DWCTEC
|
9000 Technology
|
You can bird-dog opportunities to go long (or short) by finding the best (or worst) performing sectors, and then digging into the subsectors charts, and then finally the constituents. The WSJ has a great page where you can find constituents. You can be transported to the Industry Group Tracker by clicking here. I have mine coded in my StockCharts so that I can easily look them up.
The chartbook that I provide weekly provides the most granular subsectors for which I provide readers with the weekly charts. They are available for download in each week's Weekly Sector report, and will provide you with an easy way to scroll charts. Do this each week, and you will develop a fine feel for what's happening in the market.
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