Chart of the Week Archive

Consumer Discretionary Sector Pulls Ahead

Investors are pushing consumer discretionary stocks higher despite questions about the future of consumer spending.

The Vanguard Consumer Discretionary ETF (VCR) is up nearly 14% on the latest leg of the rally which began on February 9.  That compares to just a 9% gain for the broader market over the same time period.

Top VCR holdings include McDonald's, Disney, Home Depot, C

Euro's Decline Leads to a Potential Short Squeeze

As Europe struggles with a debt crisis and spending cuts, the Euro has declined 10% against the dollar since December.  However, the run may be over, at least temporarily, and a short squeeze could be the result.

The WSJ is reporting that the Justice Department has launched an investigation into whether hedge funds might have banded together to drive down the value of the euro.  One result is that the p

European Equities Partially Recover

European equities are seeing some signs of life after strong downward pressure on the Euro related to the debt crisis in Greece caused stocks to slide.

The Vanguard European ETF (VGK) closed at $43.37 on February 8, declining nearly 15% from the mid-January high before recovering some ground in the past 10 days.  US stocks have come through the crisis relatively unscathed, down only 4% from the mid-January high.

The $2.5 billion Vanguard fund trac

Toyota Tanks After Massive Recall

Toyota Motor (TM) has taken a nose dive amid a massive recall leading Japan related ETFs lower.

Toyota has recalled 2.3 million vehicles in the U.S. to fix a gas pedal problem.  The extensive scope of the recall has raised questions about Toyota's futures sales and reputation for quality.

Since the recall announcement, TM declined 16% before partially recovering in yesterday's trading.

Materials Sector Leads Market Correction

After a strong start in 2010, Materials ETFs lead last week's market retreat.

The Materials Select Sector SPDR Fund (XLB) fell nearly 8% in last week's sell-off that saw the broader market decline nearly 5% in three days.  XLB got off to a fast start in 2010, gaining 5% before the pull back.

Materials stocks are sensitive to growth in home building and China.  Both market segments have seen prospects dim as the US tightened mortga

Semiconductors Cool Off

After a strong finish in 2009, semiconductor stocks have pulled back in the first couple of trading weeks of the new year.

The iShares S&P North American Technology-Semiconductors Index Fund (IGW) is down nearly 5% since the beginning of 2010 compared to a plus 2% performance for the broader market.

Semiconductor stocks are coming off a hot year and strong finish to 2009.  IGW is up 74% in the past 12 mo

Steel Stays Strong

Steel stocks, on a steady upward trend since the March 2009 lows, have recently outpaced the broader market.

The Market Vectors Steel ETF (SLX) is up 34% since early November compared to a 10% gain for the broader market.

After bottoming in November, scrap steel prices are up 25% and look to increase by another 15% due to seasonal supply constraints, strong exports and low mill inventory levels according to a report by J.P.

Biotech Stays on Sidelines

While the broader market has made respectable gains in 2009, Biotech stocks have stayed on the sidelines.

The SPDR S&P 500 (SPY) is up 21% on the year while the SPDR S&P Biotech ETF (XBI) is actually down over 5% in 2009.

The uncertainty created by the long debate over remaking the country's health care industry has played a key role in the poor

Google Stays Ahead of Pack

As year end approaches, Google continues to outperform the broader market.

Google (GOOG) is up over 80% year to date compared to a 21% gain for the SPDR S&P 500 (SPY).  Despite concerns that the economic downturn and lower advertising spending would cause Google to stumble, the company has continued to deliver high single digit revenue growth and double digit earnings growth.

As the global economy begins to show

Coal Miners March Higher

Global coal miner stocks have more than tripled since March, outperforming the broader market by a wide margin.

Van Eck Global's Market Vectors Coal ETF (KOL) recently topped $34, up from $16 at the beginning of 2009 and $11 at the bottom of the March lows.