Two weeks ago in the 9/8/13 Sector Trends blog post noted
the following: "In reaction to the employment
news on Friday the Bldg-Resident/Comml group (G1520) was the best
performing group for the day with a 2.1% gain, the Finance-Property Reit
group (G6730) finished #5 with a 1.3% gain, and the Finance-Mortgage Reit
group (G6731) finished #8 with a 1.1% pickup. These groups are still 21%, 16%,
and 25% off their recent highs and could stage strong rebounds if investors conclude
interest rates have stabilized, or if tapering is more modest than currently
expected." The Banks-Foreign group which was highlighted in the same blog
post (GGAL +15.9%, BSAC +5.9%); and the post also noted "Utility
groups... have gotten smoked over the last 5 weeks... (but) the Utility index
is now at support, and performance could turn here."
As the reader is no doubt aware, despite foreshadowing to
the contrary, the FOMC decided against reducing bond purchases and left the
easy money spigot wide open. Without question this qualifies as "more modest than
currently expected."
The day's top 20 performing groups (top 10%) included all
of the groups listed above as shown in the table below.
|
Top Performing Industry Groups Wednesday 9-18-2013
|
|||
|
Name
|
Sector
|
Price % Chg
|
Rank
|
|
Mining-Gold/Silver/Gems
|
MINING
|
8.2
|
1
|
|
Bldg-Resident/Comml
|
BUILDING
|
4.4
|
2
|
|
Bldg-Wood
Prds
|
BUILDING
|
3.9
|
3
|
|
Banks-Foreign
|
BANKS
|
3.9
|
4
|
|
Energy-Solar
|
ENERGY
|
3.5
|
5
|
|
Computer
Sftwr-Desktop
|
SOFTWARE
|
3.3
|
6
|
|
Finance-Commercial
Loans
|
FINANCE
|
3.2
|
7
|
|
Finance-Property
REIT
|
REAL
EST
|
3.2
|
8
|
|
Utility-Electric
Power
|
UTILITY
|
3.0
|
9
|
|
Transport-Air
Freight
|
TRANSPRT
|
2.8
|
10
|
|
Mining-Metal
Ores
|
MINING
|
2.8
|
11
|
|
Bldg-Mobile/Mfg
& Rv
|
BUILDING
|
2.7
|
12
|
|
Utility-Diversified
|
UTILITY
|
2.7
|
13
|
|
Finance-Mortgage
REIT
|
REAL
EST
|
2.6
|
14
|
|
Utility-Water
Supply
|
UTILITY
|
2.4
|
15
|
|
Leisure-Travel
Booking
|
LEISURE
|
2.3
|
16
|
|
Utility-Gas
Distribution
|
UTILITY
|
2.3
|
17
|
|
Telecom-Fiber
Optics
|
TELECOM
|
2.2
|
18
|
|
Chemicals-Paints
|
BUILDING
|
2.2
|
19
|
|
Machinery-Mtl
Hdlg/Autmn
|
MACHINE
|
2.1
|
20
|
As the reader knows all of the taper talk and
foreshadowing had killed the income trade as investors shifted to growth. That
changed today as investors piled back into dividend yielding securities.
This table below compares the daily performance of stocks
paying a dividend with those which don't. Stocks paying a dividend returned 50%
more than those which don't.
|
Dividend?
|
Gain
|
# of Stocks
|
|
Yes
|
1.49
|
1259
|
|
No
|
1.04
|
842
|
As this table demonstrates, stocks yielding between 3-8%
were the sweet spot, doubling the performance of those with no dividend:
|
Yield
|
Gain
|
# of Stocks
|
|
3% - 8%
|
1.98
|
399
|
|
8%+
|
1.46
|
96
|
|
0.1 -
3%
|
1.24
|
764
|
|
0
|
1.04
|
842
|
|
Grand
Total
|
1.31
|
2101
|
Here are some charts:
The Philadelphia Utility Index made a massive move higher
gaining 3.1% for the day:
Gold jumped off the trend line shown in this past
Sunday's blog:
The Philadelphia Housing Sector Index gained 4.3%, weekly
chart below:
Top 20 top stocks for the day out of the Housing sector were:
|
Symbol
|
Name
|
Industry Name
|
Price % Chg
|
|
RYL
|
Ryland
Group
|
Bldg-Resident/Comml
|
8.7
|
|
KBH
|
K B
Home
|
Bldg-Resident/Comml
|
8.2
|
|
BRP
|
Brookfield
Residntl Ppty
|
Bldg-Resident/Comml
|
7.1
|
|
DHI
|
D R
Horton Inc
|
Bldg-Resident/Comml
|
6.9
|
|
MTH
|
Meritage
Homes Corp
|
Bldg-Resident/Comml
|
6.8
|
|
ICA
|
Empresas
I C A Sa
|
Bldg-Heavy
Construction
|
6.5
|
|
LEN
|
Lennar
Corp Cl A
|
Bldg-Resident/Comml
|
6.5
|
|
BLDR
|
Builders
Firstsource Inc
|
Bldg-Constr
Prds/Misc
|
6.4
|
|
AWI
|
Armstrong
World Inds
|
Bldg-Constr
Prds/Misc
|
5.5
|
|
PHM
|
Pulte
Group Inc
|
Bldg-Resident/Comml
|
5.5
|
|
HOV
|
Hovnanian
Enterprises A
|
Bldg-Resident/Comml
|
5.3
|
|
MDC
|
M D C
Holdings Inc
|
Bldg-Resident/Comml
|
5.2
|
|
TOL
|
Toll
Brothers Inc
|
Bldg-Resident/Comml
|
5.2
|
|
MHO
|
M I
Homes Inc
|
Bldg-Resident/Comml
|
5.0
|
|
MWA
|
Mueller
Water Products
|
Bldg-Constr
Prds/Misc
|
4.5
|
|
BZH
|
Beazer
Homes U S A Inc
|
Bldg-Resident/Comml
|
4.4
|
|
SPF
|
Standard
Pacific Corp
|
Bldg-Resident/Comml
|
4.4
|
|
MAS
|
Masco
Corp
|
Bldg-Constr
Prds/Misc
|
4.1
|
|
XIN
|
Xinyuan
Real Estate Ads
|
Bldg-Resident/Comml
|
3.9
|
|
FBHS
|
Fortune
Brands Hme & Sec
|
Bldg-Constr
Prds/Misc
|
3.9
|
To summarize, income stocks and interest rate sensitive groups
outperformed today, and are likely to continue to do so over the short term,
and perhaps longer.
All data and charts displayed here are the property
of MarketSmith,
and are published here with their permission.
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