Faced with an over abundance of financial uncertainty, one would not expect major indexes to strengthen. But that is exactly what happened this week. Several market sectors also moved from a defensive position over to offense. This could be a one-week happening as the so called “financial cliff” is coming closer. Here is the link to all the data.
In my opinion, the NYSE index carries the most BPI weight, and it did not move from defense to offense. Second, I don’t put as much emphasis on the individual sectors other than to watch their action. If any of the sectors were to drop below the 30% line, I would then check out Vanguard’s individual sector ETFs and possibly add the sector ETF to a portfolio if and when X’s show up in the right-hand column of the ETF. We could see such an event happen within the next month, so stay tuned and check this blog daily.