Monday, July 21, 2014

Sector Watch

While everyone seems to be concentrating on the S&P 500, the NASDAQ 100, or one of the Russell Indices. These major averages consist of many market sectors and it is the sector rotation that often keeps them moving in one direction or the other. Major averages also top and bottom, sector by sector, not all at once.

Using our relative strength analysis to define over and under weights along with market perform here is how the Morningstar sectors look at the moment:


Ask yourself if you are bullish would you be better off with a major average or a sector ETF representing one of the overweight sectors? And of course vice versa if you are bearish? 

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