Monday, May 12, 2008

Sectors and Styles Strategy Report: May 12, 2008

excerpts from this week's report:

Model Growth Portfolio (MGP)

“Yet another strong relative performance week for the MGP (that makes it 6 out of the last 7, 12 out of the last 14, and 14 out of 19 for the year) puts the year-to-date relative performance results at another yearly high: +2.22%...”

ETF Market Monitor

Econ. Sectors & Industries: The base pattern for the current market returned to form with Energy up big and Financials down big. Accompanying Financials to the downside was its performance buddy, Consumer Discretionary.
Size & Styles: What’s up with Mid Cap Growth? Unusually strong weekly performance warrants further monitoring.
Global: As Energy goes, so goes Russia and Canada.
Other: Commodities, Agriculture and Gold recent losers had a very strong up week.

Expected Return Valuation Model

“Based on incoming data, it now appears likely that the tax rebate checks will hit most pronouncedly in 2Q08 thereby producing an economic bounce disproportionately in that quarter. Accordingly, and based on the 1Q08 earnings results (ex Financials), the projected S&P 500 operating earnings for 2008 has been adjusted upward from…”

Moving Averages Scorecard

“Last week’s market pullback produced some weakening in the near term direction for most US economic sectors. There were, however, two interesting developments. Consumer Staples produced an interesting decline in its near term direction (see chart below). Contrarily, Mid Cap has improved sufficiently to warrant closer monitoring as it suggests broader market strength…”

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