Weekly Sector Report | 06/11/10 (by Leisa)

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Somehow this sepia photo (mine) of the water bottle seemed to be relevant to current matters.  My hope that it is not the permanent symbolism for the Gulf of Mexico.
Last week was a significant rebound in the 24 major sectors with basic resources leading the charge higher.  The major indices are at a critical juncture technically.  It's important to remember that individual stocks make sectors and sectors comprise indices.  Accordingly, looking at individual sectors can yield clues about the indices.  Underlying sector rotation  can cause chop…and if the news stream starts a fire and flames the fears of investors, then the indices will put the those flames out by stopping, dropping, and rolling…OVER.

Let's take a look at the 24 Major Sectors:

You will remember that last week, that graph was upside down.  I have created a chart book for you that you can find here.  It contains the weekly + daily charts for the 24 Sectors above.  Also, it contains all 147 DJUS sectors sorted by relative performance to the total stock market index.

For the week, the 10 Best/Worst performing industries were as follows:

 Source:  WSJ Industry Page

Next week will be a critical week as the market digests geo-political and economic information.  Keep your trading wits about you and focus on your disciplines, not the opinions of others.

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