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Exchange Traded Fund (ETF) Focus - This Week's Leading and Lagging Sectors

by Nick Perry (regressionchannels@sir-inc.com) 10/28/2005 2:18 PM

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This weekly column of SchaeffersResearch.com highlights leading and lagging Exchange Traded Funds (ETF) and is designed to supplement the data you can find our ETF center. The graphs below are based on a select list of ETFs that I follow and reflect the returns from last Friday's close through this afternoon.

Note: If you are not familiar with the advantages that ETFs offer, make sure you read the information in our Education and FAQ sections.

Last week we saw that selling pressure was showing signs of subsiding but that the utilities and energy groups were still struggling. This week we see a much more balanced picture as some signs of buying demand have returned...

This Week's Leading and Lagging Exchange Traded Funds

Last week I said that the oil- and energy-related ETFs needed to show some signs of stabilizing as they neared support. Here we see that this did happen as the OIH, IGE, and XLE took the top slots on graph with moderate gains for the week. At the bottom of the chart we find that in general technology, retail and bonds were weak. For a longer-term perspective, the bullets below show the year-to-date returns for the ETFs listed above.

Year-to-Date Returns for This Week's Top Performing Sector Exchange Traded Funds:

Oil Service HOLDRS (OIH: sentiment, chart, options) +34.7%
iShares Natural Resource (IGE) +25.1%
Energy Sector SPDR (XLE: sentiment, chart, options) +30.9%
iShares Energy (IYE: sentiment, chart, options) +26.1%
Materials Sector SPDR (XLB: sentiment, chart, options) -8.0%
Telecom HOLDRS (TTH: sentiment, chart, options) -10.7%
iShares Basic Materials (IYM: sentiment, chart, options) -6.0%
iShares Financial Svcs (IYG: sentiment, chart, options) -4.3%
iShares Transport Average (IYT: sentiment, chart, options) -2.7%
Financial Sector SPDR (XLF: sentiment, chart, options) -1.7%

Year-to-Date Returns for This Week's Bottom Performing Sector Exchange Traded Funds:

iShares Consumer Services (IYC: sentiment, chart, options) -7.9%
iShares Technology Indx (IGM: sentiment, chart, options) -5.2%
NASDAQ 100 Trust (QQQQ: sentiment, chart, options) -4.4%
Wireless HOLDRS (WMH: sentiment, chart, options) -4.2%
Retail HOLDRS (RTH: sentiment, chart, options) -7.3%
iShares Treas Bond (TLT: sentiment, chart, options) +1.1%
iShares Networking (IGN: sentiment, chart, options) -4.5%
Internet HOLDRS (HHH: sentiment, chart, options) -16.8%
iShares Semiconductor (IGW: sentiment, chart, options) +0.2%
Semiconductor HOLDRS (SMH: sentiment, chart, options) -1.1%

As I looked over these numbers I was surprised by how many were near breakeven. Given that the SPX is within two percent of last year's close I know it makes sense that many sectors would show similar results. But it struck that we are entering the last two months of the year with little in the way of trends for traders and fund managers to jump on.

To see what groups were moving the most on a year-to-date basis I went back to my list and found that utilities, biotech, natural resources, energy, and oil service have been the best performers. With the clock ticking on 2005, some may look to pile into these groups on the hopes that the uptrends will continue. While following this sort of momentum is not a long-term investing strategy, nimble traders might find it offers some opportunity. It will be worthwhile to keep an eye on the daily action to see if signs of increased activity pickup. And for those curious, the pharmaceuticals, telecom, software, consumer discretionary, and internet groups have struggled the most...

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Options Stew: A Taste of the Week's Spiciest Plays

(11/20/2009 10:45:27 AM)

Welcome to our new video series, Options Stew, where we take a look back at what's been cookin' in the option pits this week. Join us as we sample just a few of the unusual option plays from the past week, with our "recipe" broken down into three unique segments:

read more...

Schaeffer's Media Outtake: Thoughts on Hedging, Volatility

(11/19/2009 4:15:00 PM)

"Standard & Poor's, the world's leading index provider, announced today the launch of the S&P 500 Dynamic VEQTOR Index which dynamically allocates between equity, volatility and cash to provide broad equity market exposure with an implied volatility hedge. 'Implied equity volatility typically has a strong negative correlation to equity market returns, and is considered a useful tool to hedge against the potential downside risk of the broad equity market,' says Liz Taxin, Director of Strategy Indices for S&P Indices. The S&P 500 Dynamic VEQTOR Index is comprised of three components: Equity, as represented by the S&P 500; Volatility, as represented by the S&P 500 Short-Term VIX Futures Index; and Cash, as represented by the Overnight LIBOR rate. The Index allocates between equity and volatility based on the combination of realized and implied volatility trend decision variables, and these allocations are evaluated on a daily basis."
(PR newswire � 11/18/09)

read more...

Put Trading Swells on J. Crew Group Ahead of Earnings

(11/18/2009 11:05:48 AM)

Retailers continue to line up for the earnings confessional, and one particular high-flyer is slated to release its quarterly report next week. J. Crew Group Inc. (JCG: sentiment, chart, options) is known for its preppy fashions, including jeans, khakis, and other basic (but often pricey) items sold to young professionals. J. Crew sells through its catalogs, Web sites, and some 300 retail and outlet stores in the U.S. under the J. Crew, crewcuts (for kids), and Madewell banners. Madewell, launched in 2006, is a women's-only collection of hip, casual clothes.

read more...

Drilling Down on Rowan Companies' Rally Prospects

(11/18/2009 10:00:00 AM)

Rowan Companies Inc. (RDC: sentiment, chart, options) performs contract drilling of oil and gas wells. Its fleet consists of 22 jack-up rigs and 32 land-drilling rigs. The company operates primarily in the Middle East, Texas, the Gulf of Mexico, and the North Sea.

read more...

Drug Delay Prompts Put Trading on ISIS Pharmaceuticals, Inc. (ISIS)

(11/17/2009 1:50:13 PM)

Bearish option bettors have virtually blitzed ISIS Pharmaceuticals, Inc. (ISIS: sentiment, chart, options) today, with intraday put volume skyrocketing to nearly 38 times the norm. The pharmaceutical firm this morning confessed that it's delaying plans to seek approval for experimental drug mipomersen by nearly a year, from mid-2010 to mid-2011.

read more...

Pre-Earnings Option Activity Accelerates on Sears Holdings Corporation

(11/16/2009 1:55:56 PM)

Sears Holdings Corporation (SHLD: sentiment, chart, options) has been a hot topic on both sides of the options aisle today, as investors race to place their bets ahead of the retailer's looming turn on the earnings stage. According to Thomson Reuters, the firm is expected to report its third-quarter figures before the opening bell on Thursday, Nov. 19.

read more...

Options Traders Bulk Up on Puts on Software Vendor

(11/13/2009 12:34:23 PM)

Options players are placing some heavy bets that salesforce.com inc. (CRM: sentiment, chart, options) is going to suffer a disappointing earnings report next week, as traders load up on puts. The International Securities Exchange (ISE) has reported 2.7 puts purchased to open for every one call purchased to open during the past 10 trading sessions. This ratio of puts to calls is higher than 93.8% of all those taken during the past year. In other words, puts are significantly more popular than calls among traders.

read more...

Hopes Are Riding High for GameStop's Earnings

(11/13/2009 11:35:33 AM)

The video game sector is struggling. U.S. video game sales dropped by 18% in October compared to the same period last year, according to the latest data from NPD Group. Meanwhile, analysts had forecast a more modest decline of 11%.

read more...

Options Stew: A Taste of the Week's Spiciest Plays

(11/13/2009 10:55:42 AM)

Betting on a Short-Term Bounce for First Solar, Inc. (FSLR)

(11/12/2009 3:15:41 PM)

Call traders have been fond of First Solar, Inc. (FSLR: sentiment, chart, options) today, despite the solar concern's retreat into the red. In afternoon trading, the security has already seen roughly 18,000 calls cross the tape � nearly tripling its average intraday volume of fewer than 6,250 contracts.

read more...

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Exchange Traded Fund (ETF) Focus - This Week's Leading and Lagging Sectors

by Nick Perry (regressionchannels@sir-inc.com) 10/28/2005 2:18 PM

stocks

etf