Have you ever wondered what "key sectors" are and what exactly are in them?
Look no further!
While there are many funds to look at, these ones helped me simplify my outlook on the Market to help guide my trading decisions.
Here is the resource I use to find this info: sector spdr [.] com (Apologies, I cannot publish with a link since this is my first post and I'm new)
How to use this info?
I like to use sector information to find stocks I like. If there is a setup I like to use within one of these sectors, I will look for a top holding within the sector to play off of (since the individual stocks are more prone to move at a higher percentage than the sector as a whole).
For example, I might like the trend in XLK better than the other sectors. I will look through the stocks (which I have a watchlist for each to make things easy) in XLK to see if one has a setup I like to trade (like AAPL).
If you decide to make a watchlist for each of these sectors, I highly suggest keeping the sector itself at the top of each watchlist. Saves a lot of clicking. I also keep a watchlist titled "Key Sectors" which just has the 11 sectors in it with SPY at the top of the list. I do this to get a sense of what is happening in the Market as a whole.
Here are 11 ETF's (Exchange Traded Funds) which divide the S&P into index funds. Listed below are their top holdings (by ticker symbol) as of today:
XLC - Communication Services FB GOOGL GOOG NFLX CHTR CMCSA DIS VZ T TMUS
XLY - Consumer Discretionary AMZN TSLA HD MCD NKE LOW SBUX TGT BKNG TJX
XLP - Consumer Staples PG KO PEP WMT COST PM MO MDLZ EL CL
XLE - Energy XOM CVX COP MPC SLB PXD EOG KMI WMB PSX
XLF - Financials BRK.B JPM BAC WFC MS C GS BLK SPGI SCHW
XLV - Health Care JNJ UNH PFE ABT TMO DHR LLY ABBV MRK MDT
XLI - Industrials HON UNP UPS RTX BA DE GE MMM LMT
XLB - Materials LIN SHW APD ECL FCX NEM DOW DD IFF PPG
XLRE - Real Estate AMT PLD CCI EQIX PSA DLR SPG SBAC WELL CBRE
XLK - Technology AAPL MSFT NVDA V PYPL ADBE MA CRM CSCO ACN
XLU - Utilities NEE DUK SO D EXC AEP SRE XEL AWK PEG
Comment
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simtrader19a made a great comment below about being able to compare sectors against SPY. See his example below, but it goes this this:
His comment reminded me too... There is an indictor you all can use for this figure as well. It's called "Beta" and I'm certainly positive someone has written a script for it on TradingView. If the number is higher than 1, it indicates that particular ticker is out performing SPY (or whatever you have it set to). I tend to like stocks that are Beta 1.3 or better (for longs).
@TradingView, thank you! Glad it was well received :)
simtrader19a
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What you can also do , is compare the sectors by against the SPY so this indicates which sectors are performing better than SPY.
Example:
XLC/SPY
XLY/SPY
XLP/SPY
XLE/SPY
XLF/SPY
XLV/SPY
XLI/SPY
XLB/SPY
XLRE/SPY
XLK/SPY
XLU/SPY
verse_303
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@simtrader19a, oh yeah--I almost forgot! There is an indictor you all can use for this figure as well. It's called "Beta" and I'm certainly positive someone has written a script for it on TradingView. If the number is higher than 1, it indicates that particular ticker is out performing SPY (or whatever you have it set to). I tend to like stocks that are Beta 1.3 or better (for longs).