11 Minute Read

Tackle Today: Best and Worst performing Sectors

January 11, 2019

By | No Comments

≈ Sector Rotation Basics. ≈

The S&P 500 hit its all-time high on September 21st, 2018. In the last 76 trading days the best performing sectors by percentage measured against the S&P were Utilities, Real Estate, Staples and Health Care.

Energy, Financials, Industrials, Technology and Materials were the weakest performers during this time frame.

11 of the 12 sectors lost during this period as Utilities was the only sector performing in the green.

While looking at this data, it’s interesting to note, that in the world of investing we call the performance of something like Staples and Healthcare as ‘relative strength’ even though they lost -5.58% and -6.75% respectively. Where does the strength come from?

Sector performance is generally measured against the overall performance of the market. So, when a sector only loses 5 or 6% and the broad market was down 11.3% during that time, they get labeled as ‘strong’ and there is a rotation into ‘defensive’ sectors like the ones named above.

More importantly, and what matters to your bottom line is the fact that 11 of 12 sectors were down, and 6 of them down more than 10% during the same time frame.

Sector rotation is interesting, but it’s a little odd to call something strong simply because it lost a little less than the market. Regardless, if you ever read a news article where the pundit is talking about relative strength, they’re probably measuring that against the average gain or loss of the broad market during that period.

Sector Rotation is something that can help you understand the dynamics of Institutional Investing and where they are moving their money over time. When money moves into more aggressive sectors, it generally indicates a willingness to take risk. When money is holding in areas that are labeled defensive in nature, it’s an indicator weakness in the markets.


Chart of the Day

S&P 500

The chart above measure the sector performance relative to the S&P 500 between 9/21/18 -1/10/18.

The chart above measures the raw performance of all sectors including the S&P 500 between 9/21/18 -1/10/18.


Video of the Day

What Are Dividends

A dividend is the distribution of a token reward from a portion of company’s earnings, and is paid to a specified class of shareholders.


Today’s Lineup

OPTIONS THEORY

A Bear Tamer Update

One of the carefully crafted and thoroughly vetted systems introduced in the Bear Market Survival Guide is the Bear Tamer. In the video series we spelled out how it works, and in the monthly Mastermind meetings I adjust and manage the position per the rules. Today I want to provide a quick overview of how it has fared during these tumultuous times.

Keep Reading →

Traders Lounge 11am EST

Join the coaches in this live lounge, ask questions, discuss ideas or just sit back and listen to veteran traders discuss market conditions.

JOIN US HERE

Cashflow Club Replay

If you missed last night’s episode where Coach Mark talked about the Tackle 25 or would like to watch it again, check it out here.

Watch Replay

Halftime Report 12:30pm EST

The Halftime Report starts at 12:30 EST and covers what news is driving the market, chart analysis from the movers and shakers of the day and fun in a way that only Matt and Tim can deliver.

JOIN US HERE

Market Recap 4:30pm EST

The Market Recap is designed to give you a quick overview of the day that was. While brief, this report is designed to cover all of the major events that drove the markets that day and help you plan for the trading day ahead.

JOIN US HERE


Tackle Trading: Financial Freedom is a Journey. Sign up now for a 15-day free trial.

Financial freedom is a journey

The Tackle Today series is brought to you by Tackle Trading.

Sign up now and gain unfettered access to all of the quality content and powerful Scouting Reports that our Pro Members enjoy for 15-days absolutely free with no strings attached and let us show you what your trading has been missing.

# Sign up now for a 15-DAY FREE TRIAL #


Legal Disclaimer

Tackle Trading LLC (“Tackle Trading”) is providing this website and any related materials, including newsletters, blog posts, videos, social media postings and any other communications (collectively, the “Materials”) on an “as-is” basis. This means that although Tackle Trading strives to make the information accurate, thorough and current, neither Tackle Trading nor the author(s) of the Materials or the moderators guarantee or warrant the Materials or accept liability for any damage, loss or expense arising from the use of the Materials, whether based in tort, contract, or otherwise. Tackle Trading is providing the Materials for educational purposes only. We are not providing legal, accounting, or financial advisory services, and this is not a solicitation or recommendation to buy or sell any stocks, options, or other financial instruments or investments. Examples that address specific assets, stocks, options or other financial instrument transactions are for illustrative purposes only and are not intended to represent specific trades or transactions that we have conducted. In fact, for the purpose of illustration, we may use examples that are different from or contrary to transactions we have conducted or positions we hold. Furthermore, this website and any information or training herein are not intended as a solicitation for any future relationship, business or otherwise, between the users and the moderators. No express or implied warranties are being made with respect to these services and products. By using the Materials, each user agrees to indemnify and hold Tackle Trading harmless from all losses, expenses and costs, including reasonable attorneys’ fees, arising out of or resulting from user’s use of the Materials. In no event shall Tackle Trading or the author(s) or moderators be liable for any direct, special, consequential or incidental damages arising out of or related to the Materials. If this limitation on damages is not enforceable in some states, the total amount of Tackle Trading’s liability to the user or others shall not exceed the amount paid by the user for such Materials.

All investing and trading in the securities market involves a high degree of risk. Any decisions to place trades in the financial markets, including trading in stocks, options or other financial instruments, is a personal decision that should only be made after conducting thorough independent research, including a personal risk and financial assessment, and prior consultation with the user’s investment, legal, tax and accounting advisers, to determine whether such trading or investment is appropriate for that user.

Leave a Reply

Chart Modal

Tackle Trading