Sector Research 7-3-2013

Manesh put me to task to do sector research across Dow Indexes to answer the question; what is trending the most and what is trending the least?

The Heatmap has 37 Indexes listed under the “Sector ETF” section.  For this research I went with a more consolidated list from the main page of the Dow website:

  • $DJUSBM: Dow Jones U.S. Basic Materials Index
  • $DJUSNC: Dow Jones U.S. Consumer Goods Index
  • $DJUSCY: Dow Jones U.S. Consumer Services Index
  • $DJUSFN: Dow Jones U.S. Financials Index
  • $DJUSHC: Dow Jones U.S. Health Care Index
  • $DJUSIN: Dow Jones U.S. Industrials Index
  • $DJUSEN: Dow Jones U.S. Oil & Gas Index
  • $DJUSTC: Dow Jones U.S. Technology Index
  • $DJUSTL: Dow Jones U.S. Telecommunications Index
  • $DJUSUT: Dow Jones U.S. Utilities Index

The LEAST active is the Dow Jones U.S. Basic Materials Index.  This thing has basically gone no where during the entire bullish run of the past several months.

Dow Jones U.S. Basic Materials Index: Weekly

The first runner up for least movement is the Dow Jones U.S. Oil & Gas Index.  It’s price action has stayed in line with Oil as a commodity.

As I was sharing my findings from this research with a fundamentals trader he remarked, “tell me about it… my HES play has gone no where!”  For these two indexes and the stocks within them I am not looking to take any trades.  However, you can bet I have alerts set for both the top and bottom of their ranges to be on the lookout for a breakout.

So which is the winner for the MOST movement in this bull market?  Dow Jones U.S. Consumer Goods Index and Dow Jones U.S. Consumer Services Index.  Apparently we Americans like to buy “stuff” and “stuff” has been the main thing that has moved for the past several years.  Right now they are at a very overextended level on the Monthly and Weekly charts.

Dow Jones U.S. Consumer Services Index: Monthly

The runner up in the category of movers is Dow Jones U.S. Health Care Index.  It has also run quite strongly.

If you are looking for momentum trades, where the real movement and money flowing can be found, these are the indexes I would be searching for trades.  In fact, Consumer Goods and Services have been the BIGGEST movers since the rebound of 2009 which answers the other question, “when money left Financials… where did it go?”

Speaking of Financials… a worthy mention is to look at where they are now.  A very interesting level to me:

Dow Jones U.S. Financials Index: Monthly