Scouting the Underperformers
I am not interested in buying beaten down sectors right now. Frankly, if XYZ isn’t going up in this market, it isn’t worth my time. But these industries of vast underpermance should be monitored and considered, only after they’ve started to turn the corner.
Deep in the bowels of iBC, I have a sector correlation tool, which isn’t for public consumption, that compares 194 industries to the SPY over a number of time frames. What you want to do is track the best stock per sector and wait for the turn. I don’t know if there is another massive sector turn around to be had, similar to housing mid 2011, but you never know.
Here are the industries that have underperformed the SPY over the past 12 months.
It’s clear to me that commodities have been the big underperformers. Steel, aluminum, gold, silver and oil have markedly underperformed the S&P over the past 12 months. In the next post, I will provide a consolidated watchlist, encompassing stocks from each industry mentioned above.
11 Responses to Scouting the Underperformers
Year of the black water snake approaches.
To benefit astrologically are metal sign sectors:
Currency, banking, financials, autos, commodities.
“Worldly” sectors to do well: transport, logistics, shipping, gambling, tourism, infrastructure.
And water sign to dampen fire sign sectors: oil, gas, telecom, tech, utilities.
FBR nice report on WNC this AM.
Sterne similar.
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Are you planning on adding to WNC?
The Street (Cramer?) gave it an upgrade today.
http://www.thestreet.com/story/11834906/1/wabash-national-corporation-stock-upgraded-wnc.html
Not yet.
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I don’t get it! At least 3 upgrades today and the stock is down 5%!
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Throw all the sector hocus-pocus out the window and short EXEL…you’ll thank me later! 25% of the float has been short for past three years for a reason. Tic Toc
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Why do you insist to leave baseless comments on this blog in order to enhance your short position?
If you have reasons why EXEL should be sold, state them. Otherwise, be gone.
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Almost a billion market cap right here, nearly $350mm in debt, a drug that is only projected to have $10mm in revenue per year and most importantly, Seeking Alpha and Motley Fool are the biggest BULLS and have been for two years++ (no better contrarian indicator). The fact that the charts on it are horrific is just gravy. Tic Toc
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Wow! Very impressive analysis
I have a lot in AA and I am learning that it will require some patience. I am only investing in assets that have inherent value.
zzz
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DECK should be held into earnings. My reason is that DECK, when given a short squeeze, will rise. I have been holding my WNR since the Fly said to and it has gone up nicely.
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MUNCH, hooker knows where the new place is.
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