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Sector rotation was something that I discussed first time here on May 27, 2007. I talked about where money was flowing and also mentioned about 21 picks. It’s been roughly 7 weeks since then and I thought let’s review if my analysis was worthwhile and how did individual picks do.
Here is the recap:
I was bearish on Utilities and Bullish on Energy, Industrial, Materials and selectivly bullish on transportation. Over this period of 7 wks, utilities lost -3%, Energy gained +8%, Industrial gained +4% and Materials also gained +4.5%. While S&P gained 1.0%, Dow +1.5% and Nasdaq at +4%. So the results are pretty much in line of forecast. That’s bigger picture, now let’s look at individual picks for each sector.
Overall out of 21 picks, 17 were winners with 4 gaining over 20%, 12 gaining more that 10%. only 4 pick lost the biggest loss being MDM, by -5%.
Energy– my picks were BRS (up +11%), OIH (+8%), WHQ (+4%), ENG (+20%), RIG (+15%) and DO (+13%).
Next was Industrial and here is the results of my picks FWLT (+17%), JEC (+12%), KAMN (+12%), FLR (+13%), TGI (+5%) and AH (+1.6%). Also attached is the comparison chart of all these when compared with all the 3 major markets.
Now let’s review materials– FCX (+23%), PCU (+23%), CENX (+20%), MDM (-5%) and CCJ (-3%). There were 4 other picks for selective transportation CTB (+10%), TWI(+4%),CP(+1%) and FLA(-1%).
Here are the comparison charts (vs S&P 500, Dow and Nasdaq).
This is not to talk about my stock picking skills but to make a point that if you follow where money is flowing, chances are you are most likely to outform the broader market (There is always a bull, you need to hunt it).
Profitable trading, OP
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