June 24, 2009: S&P Sectors
June 24th, 2009
As we approach the end of Q2, we reviewed some technical highlights (and lowlights) of the year so far. For 2009 year-to-date, the following has occurred.
- Technology is the best performer with a 22.07% gain.
- Industrials is the worst performer with a 9.32% loss.
- Financials is the best performer since the 2009 lows with a 124.09% gain (peaked on May 8). Currently, the index is up 99.9% since its 2009 low.
- Healthcare is the worst performer since the 2009 lows with 22.38% gain (peaked on June 19). Currently, the index is up 19.06% since its 2009 low.
- Consumer Staples is currently the worst performer since the 2009 lows with a 17.91% gain.
- Consumer Discretionary peaked May 7; the first of all the indexes
- Healthcare peaked on June 19; the last of all the indexes.
It is a usual occurrence at reporting period ends (months, quarters, and years) to see money flow into the best-performing sectors and names and flow out of the worst performing sectors and names. With the “window-dressing” mentality in mind, below are some names that could experience unusual price action in the days leading up to the end of June and into the early days of July.
- Strongest names (over $10 per share) in Technology are: GLW (up 63.69%), AAPL (up 60.50%), TDC (up 49.53%)
- Weakest names (over $10 per share) in Industrials are: R (down 28.89%), GE (down 26.56%), CAT (down 24.11%)
- Strongest names (over $10 per share) in Financials are: XL (up 199.73%), MS (up 75.19%), and GS (up 71.15%)
- Weakest names (over $10 per share) in Healthcare are: CEPH (down 26.05%), HUM (down 18.35%) and GENZ (down 17.54%).
- Weakest names (over $10 per share) in Consumer Staples are: STZ (down 21.24%), PG (18.33%), and BFB (down 18.06%)
With four full trading days remaining in Q2, there will likely be a great deal of volatility in the over these days. Typically, names that are subject to window-dressing price swings will be vulnerable to equally severe reversals in the first few days of Q3. With next week being a four day week (Friday is closed in observance of the Independence Day holiday), general volatility will possibly be even greater than a normal start to a typical quarter.