- The Big Picture - http://www.ritholtz.com/blog -

Two-horned bull?

Posted By Barry Ritholtz On October 25, 2006 @ 10:30 am In Investing,Markets,Technical Analysis | Comments Disabled

Mike Panzner [1] points out that the bull has become two-horned , as laggards become leaders in recent days.  Once the S&P 500 reached a new multi-year closing high of 1326.57 on 9/26 (beating the prior peak of 1325.76 that was reached on 5/5), the sector laggards began to play catch-up.

>

S&P500 Sector Performance
past month versus prior 3

Twohornedbull [2]
Source: Michael Panzner, Collins Stewart [1]

>
One theory: fund managers who had sat out the first phase of the bull
run scrambled to invest in stocks and sectors that had trailed behind,
in an effort to keep up.

This chart shows how the pre-9/26 sectors have fared, and how the markets have run since then:

>

 

 

 

 

 

 

 
 
   6/13 – 9/25  
 
  9/25 – 10/24  
 
SECTOR RETURN RANK RANK RETURN
Telecom Svcs 15.63 1 9 2.10
  Info Technology 11.82  2 6 3.88
  Health Care 10.36 3 7 2.29
Financials 9.59 4 8 2.16
  Cons Discretionary 7.95 5 3 5.94
Cons Staples 7.91 6 10 1.63
Utilities    6.63  7 4 4.96
Materials 6.61 8 2 6.24
  Energy 5.17 9 1 8.48
  Industrials 1.70 10 5 4.83
  S&P 500        8.39 3.85

 

>
Interesting stuff. Thanks, Mike.


Article printed from The Big Picture: http://www.ritholtz.com/blog

URL to article: http://www.ritholtz.com/blog/2006/10/two-horned-bull/

URLs in this post:

[1] Mike Panzner: http://www.amazon.com/exec/obidos/ASIN/032124785X/ref=ase_thebigpictu09-20/102-4529470-0078540

[2] Image: http://bigpicture.typepad.com/.shared/image.html?/photos/uncategorized/twohornedbull.jpg

Copyright © 2008 The Big Picture. All rights reserved.