Thursday, December 01, 2016

Chart Talk {Sectors Democrats Disliked}

The next few days I will put up charts of the various sectors of the market as represented by the S&P 500.  We're going to look at these basically since the election.  Today we'll show sectors of the market that the Democrats disliked.  This is not a political statement.  Rather it is the economic reality as perceived by the markets.  It is well known that the Democrats took a skeptical eye towards banks for instance, wanted greater control over health care and were ambivalent at best towards the materials sectors.  Not surprising most of these sectors has had a major move since election day.   Health care is the laggard being up less than a percent as of last night but materials are up 5.67%, energy up 7.37%, and financials have popped higher to the tune of nearly 13%!  Charts come to us from  You can double-click on these to make them larger.  We'll be back Monday with some more charts.

The first chart is the health care ETF XLV.  Each chart looks back about nine months so you can see on a comparative basis how each has done not only for most of this year but also since the election.  Health care has struggled since the summer.  It made highs in June and has been straight down since.

Here's the materials ETF XLB.  Straight up since the election.

Here's energy represented by its ETF, XLE.  Same move higher but also note that energy is currently the beneficiary of  the OPEC deal announced yesterday to cut oil production amongst its member states.

And finally here's the financial ETF, XLF.  Huge Trumpian move since election day.  Investors think some of the governmental oversight on banks  and some of the more onerous provisions of Dodd-Frank will be mitigated or possibly even go away.

 *Long ETFs related to XLV, XLE, XLF in client and personal accounts.  Long ETFs related to XLB in certain client accounts.  Please note that positions can change at any time without notice or dissemination on any other form of electronic media.