Tuesday, June 9, 2009

5 Minute Charts -- Sector SPDRs (XLB, XLV, XLP, XLY, XLE, XLF, XLI, XLK, XLU)

the charts below show the movements of the nine 'Sector Select SPDR' ETFs over the past few weeks. while the overall market (eg S&P 500) continues to hover near its highs, I see that only one of the sector funds here has touched a new high this week: XLK (Technology).

In the newsletter we have been monitoring the situation in the Stock Markt very closely the last couple weeks as the S&P has come very near my preferred price target.* for what it's worth, the Nasdaq has exceeded my target zone somewhat, the Nikkei is right in the heart of its target zone, and the Wilshire 5000 poked a whole 14 points above my target of 9750 last week.

So the question now is whether the targets I've come up with the last couple months prove too conservative or whether I have gauged the conditions of the market accurately (again). with this in mind I am monitoring all kinds of different indicators and ratios.

tracking the positions of the various SPDR ETFs should prove helpful in this regard. for the moment it looks like we have a hung jury, so we await another round of deliberation.

* the 05/04/09 letter in which I detail the S&P target is actually available to the public at this URL:


(I have started to put some older letters that I have referenced back to on that page. you are welcome to check back to the page occasionally for new additions.)