Weaker (and stronger) Stock Market Sectors

As a preamble to a next stock market post devoted to the analysis of the topping process in the stock market (see the next stock market article titled "Anatomy of a Stock Market Top"), below we discuss two stock market EFTs: the Nasdaq-100 index ETF stock, and the financial sector EFT stock (XLF).

In the next two charts, one may want to analyze the charts in more details at the following dates: Middle of February, End of April, and Thursday of last week (7/7/2011). This would be useful in the discussion in the article on the anatomy of a stock market top---we will come back to it in the next article.

We note the XLF EFT stock did not establish a new high since the middle of February, while the QQQ EFT stock made a new high at the end of April, and as revisit it (in fact broke it by few cents last Thursday/morning of Friday before the jobs report numbers was released).

If one were to plot the QQQ price in terms of XLF units (which is done in the third chart below), one can note that the QQQ/XLF price has been in a rising trend, as suggested by the two moving averages curves. It therefore makes sense that the QQQ EFt stock makes a new high whenever the XLF ETF stock establishes a new high, if both indices are positively and perfectly correlated. We also point out that QQQ may establish a new high without XLF establishing a new high, which is what took place over the period of Feb 15 to July 07, as XLF did not make a new high while the QQQs made two new highs.

If the trend and the correlation of QQQ vs. XLF were to continue, and if the stock market were to retreat, news lows would be established by the XLF ETF whenever a new low is made by the QQQ ETF stock.

It is probably a main reason why stock market bears like to state that they short weak sectors in a retreating market, and the stock market bulls like they go long strong sectors in a rising stock market.

Below the three stock charts, a list of stocks in the XLF ETF fund is included. If the market were to retreat, it is not unreasonable to assume that stock market short sellers might be looking at such stocks.

List of stocks in the XLF stock ETF Funds:
Name Symbol
1 JPMorgan Chase & Co. JPM
2 Wells Fargo & Co. WFC
4 Citigroup Inc. C
5 Bank of America Corp. BAC
6 Goldman Sachs Group Inc. GS
7 American Express Co. AXP
9 MetLife Inc. MET
10 Simon Property Group Inc. SPG
12 Bank of New York Mellon Corp. BK
13 PNC Financial Services Group Inc. PNC
14 Prudential Financial Inc. PRU
15 Capital One Financial Corp. COF
16 Travelers Cos. Inc. TRV
17 State Street Corp. STT
18 ACE Ltd. ACE
20 Franklin Resources Inc. BEN
21 CME Group Inc. Cl A CME
22 BlackRock Inc. BLK
24 Chubb Corp. CB
25 BB&T Corp. BBT
26 Marsh & McLennan Cos. MMC
27 AON Corp. AON
28 ProLogis Inc. PLD
30 Boston Properties Inc. BXP
31 Allstate Corp. ALL
32 T. Rowe Price Group Inc. TROW
33 Vornado Realty Trust VNO
34 HCP Inc. HCP
35 Ventas Inc. VTR
36 Charles Schwab Corp. SCHW
37 Discover Financial Services DFS
38 Ameriprise Financial Inc. AMP
39 Progressive Corp. PGR
40 SunTrust Banks Inc. STI
41 Loews Corp. L
42 American International Group Inc. AIG
43 Host Hotels & Resorts Inc. HST
44 Avalonbay Communities Inc. AVB
45 Weyerhaeuser Co. WY
46 Hartford Financial Services Group Inc. HIG
48 Northern Trust Corp. NTRS
49 M&T Bank Corp. MTB
51 Principal Financial Group Inc. PFG
52 IntercontinentalExchange Inc. ICE
53 Health Care REIT Inc. HCN
55 Lincoln National Corp. LNC
56 SLM Corp. SLM
57 Unum Group UNM
58 Moody's Corp. MCO
60 Kimco Realty Corp. KIM
61 Regions Financial Corp. RF
62 CB Richard Ellis Group Inc. Cl A CBG
63 Leucadia National Corp. LUK
64 XL Group PLC XL
65 Plum Creek Timber Co. Inc. REIT PCL
66 Comerica Inc. CMA
67 Huntington Bancshares Inc. HBAN
68 Genworth Financial Inc. Cl A GNW
69 People's United Financial Inc. PBCT
70 Legg Mason Inc. LM
71 Torchmark Corp. TMK
72 Cincinnati Financial Corp. CINF
73 Zions Bancorp ZION
74 Hudson City Bancorp Inc. HCBK
76 Assurant Inc. AIZ
77 E*TRADE Financial Corp. ETFC
78 Apartment Investment & Management Co. AIV
79 First Horizon National Corp. FHN
80 Federated Investors Inc. FII
81 Janus Capital Group Inc. JNS

List of stocks in the QQQ ETF Stock Funds:

HoldingsTicker Name
AMZN Amazon.com Inc.
CMCSA Comcast Corp. Cl A
NWSA News Corp. (Cl A)
SBUX Starbucks Corp.
PCLN priceline.com Inc.
WYNN Wynn Resorts Ltd.
NFLX Netflix Inc.
BBBY Bed Bath & Beyond Inc.
SPLS Staples Inc.
LINTA Liberty Media Holding Corp. Interactive (Series A)
MAT Mattel Inc.
ROST Ross Stores Inc.
VMED Virgin Media Inc.
ORLY O'Reilly Automotive Inc.
DLTR Dollar Tree Inc.
SHLD Sears Holdings Corp.
EXPE Expedia Inc.
GRMN Garmin Ltd.
APOL Apollo Group Inc. (Cl A)
CTRP Ctrip.com International Ltd. (ADS)
URBN Urban Outfitters Inc.
COST Costco Wholesale Corp.
GMCR Green Mountain Coffee Roasters Inc.
WFM Whole Foods Market Inc.
AMGN Amgen Inc.
TEVA Teva Pharmaceutical Industries Ltd. ADS
GILD Gilead Sciences Inc.
ESRX Express Scripts Inc.
CELG Celgene Corp.
BIIB Biogen Idec Inc.
ISRG Intuitive Surgical Inc.
MYL Mylan Inc.
CERN Cerner Corp.
VRTX Vertex Pharmaceuticals Inc.
ILMN Illumina Inc.
ALXN Alexion Pharmaceuticals Inc.
LIFE Life Technologies Corp.
HSIC Henry Schein Inc.
WCRX Warner Chilcott Plc
CEPH Cephalon Inc.
XRAY Dentsply International Inc.
QGEN Qiagen N.V.
PCAR Paccar Inc.
CHRW C.H. Robinson Worldwide Inc.
FSLR First Solar Inc.
EXPD Expeditors International of Washington Inc.
FAST Fastenal Co.
JOYG Joy Global Inc.
SRCL Stericycle Inc.
AAPL Apple Inc.
MSFT Microsoft Corp.
ORCL Oracle Corp.
GOOG Google Inc. Cl A
INTC Intel Corp.
CSCO Cisco Systems Inc.
EBAY eBay Inc.
BIDU Baidu Inc. ADS
DELL Dell Inc.
ADP Automatic Data Processing Inc.
CTSH Cognizant Technology Solutions Corp.
YHOO Yahoo! Inc.
NTAP NetApp Inc.
AMAT Applied Materials Inc.
BRCM Broadcom Corp.
ADBE Adobe Systems Inc.
INTU Intuit Inc.
CTXS Citrix Systems Inc.
RIMM Research In Motion Ltd.
ALTR Altera Corp.
SYMC Symantec Corp.
ATVI Activision Blizzard Inc.
CHKP Check Point Software Technologies Ltd.
CA CA Inc.
PAYX Paychex Inc.
SNDK SanDisk Corp.
BMC BMC Software Inc.
XLNX Xilinx Inc.
FFIV F5 Networks Inc.
MRVL Marvell Technology Group Ltd.
FISV Fiserv Inc.
ADSK Autodesk Inc.
ERTS Electronic Arts Inc.
MU Micron Technology Inc.
MXIM Maxim Integrated Products Inc.
LLTC Linear Technology Corp.
STX Seagate Technology Inc.
MCHP Microchip Technology Inc.
KLAC KLA-Tencor Corp.
INFY Infosys Ltd. ADR
AKAM Akamai Technologies Inc.
VRSN VeriSign Inc.
LRCX Lam Research Corp.
FLIR FLIR Systems Inc
FLEX Flextronics International Ltd.
SIAL Sigma-Aldrich Corp.
VOD Vodafone Group PLC ADS
NIHD NII Holdings Inc.


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