Friday, August 04, 2006


A regular reader has asked me to give more detail about the current "rotation". Wow! How many pages does she want?

I'll do a condensed report for now and add to this complex topic in future missives.

One way to categorize the market is by the 9 SPDR's. These 9 indices breakdown the S&P 500 largest stocks into broad sectors. The following list of the nine sectors has the stock exchange symbols posted to the right of the name.

Consumer Discretionary xly
Technology xlk
Industrial xli
Materials xlb

Energy xle

Consumer Staples xlp
Health Care xlv
Utilities xlu
Financials xlf

The above list was put in order by when these stocks do well during a "typical" investment cycle. At or near the end of an economic recession, consumer discretionary stocks lead the dramatic "first leg of the Bull Market". Technology stocks (For more)