weekly sector review written by Scott Martindale

Scott Martindale

I’ve been reading prominent market pundits predicting everything from the “Crash of 2010 coming” to “Major surge ahead.” With such divergence of predictions, it seems like a good time to remain conservatively long/short in accordance with Sabrient’s SectorCast-ETF value-oriented model.

Scott Martindale

Given the recent market weakness, it’s no surprise that Sector Detector’s long/short portfolios have outperformed. This week, Sabrient’s SectorCast-ETF model remains defensive. Of course, the underlying quantitative model isn’t aware that we are entering a time of year that is traditionally bullish. It simply reads the data and tells us which sectors appear to be relatively overvalued.

Scott Martindale

As the stock market continues to trade near its highs, Sabrient’s SectorCast-ETF model remains defensive, given its GARP (growth at reasonable price) focus. The top and bottom ranked sectors remain the same this week, but there was noticeable movement in the middle. In particular, Information Technology is dropping while Telecommunications rises.

Scott Martindale

Sabrient’s SectorCast ETF rankings solidified its defensive bent this week. Healthcare continues to lead, but Consumer Staples moved ahead of InfoTech into the second spot. On the bottom, Materials remains in the basement as the fundamentally most overvalued sector, but Industrials dropped quite a bit in the wake of its recent price momentum, which added to its already overvalued levels.

Scott Martindale

We are seeing only slight movement to Sabrient’s Sector Detector ETF rankings, as Healthcare, InfoTech, and Consumer Staples continue to lead, while Materials sinks further into the cellar and remains the fundamentally most overvalued sector. 

Latest rankings: This week, SectorCast-ETF indicates that Healthcare (XLV) remains solidly in front on a forward-looking basis, with the highest score of 93.

Scott Martindale

Healthcare, InfoTech, and Consumer Staples continue to lead in the Sector Detector ETF rankings, based on Sabrient’s fundamentals-based SectorCast model. Actually, they increased their scores this week relative to the other sectors as the bottom-up speculative rally led to further overvaluation in the fundamentally weaker sectors. 

Scott MartindaleSabrient’s fundamentals-based ETF rankings, based on our new and powerful SectorCast model, has proven to be quite predictive for identifying the best (most undervalued) and worst (most overvalued) sectors, with a 1-month forward look. This week, Healthcare continues to lead by a healthy margin.

 

smartindale / Tag: absolute-return, long/short, Sabrient, sector-analysis, SectorCast, sectors, stock-trading / 0 Comments
Scott Martindale

This week, the Healthcare sector moves to the top of Sabrient’s SectorCast rankings, making for a “healthy” change. A back-tested, fundamentals-based quantitative model, SectorCast is quite useful for identifying the best (most undervalued) and worst (most overvalued) sectors, with a one-month forward look. This week, I’m making one final change to how I’m incorporating the model into Sector Detector.

smartindale / Tag: absolute-return, long/short, stock-trading / 0 Comments

by Scott Martindale, Senior Managing Director

Scott Martindale

Last week's Sector Detector post debuted a new ranking system by Sabrient Systems that is calculated using fundamentals research on exchange-traded funds rather than the usual price momentum that most other indexes are based on.

smartindale / Tag: CBB, DOW, IYZ, MWW, NIHD, quantitative-model, RAI, sector-analysis, stock-trading, SWY, TXT, VMC, XLB, XLP, XLU / 0 Comments

by Scott Martindale, Senior Managing Director

Scott Martindale

Scott Martindale

smartindale / Tag: AEE, CAG, CII, DOW, KR, POM, SOT, VMC AMT, XLB IYZ, XLP, XLU / 0 Comments

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