ETF Rewind for 2010: XLI, XLY Post Largest Overall Sector Gains

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 |  Includes: DBA, DBC, DBE, DBP, DIA, EEM, EFA, IWM, IYR, IYT, PWB, PWV, PXMG, PXMV, PXSG, PXSV, QQQ, SPY, TLT, UUP, XLB, XLE, XLF, XLI, XLK, XLP, XLU, XLV, XLY
by: ETF Prophet

The major U.S. indices finished mixed on the last week of the year, with the S&P 500 (NYSEARCA:SPY) posting a slight +0.1% gain. Volume was unsurprisingly the weakest of 2010, causing wild oscillations towards the end of the atypical full pre-holiday Friday session.

Looking ahead, Dollar weakness has the UUP as short-term oversold as Emerging Markets (NYSEARCA:EEM) are now overbought, with RSI-2′s of 1 and 98, respectively.

(Click Image to Enlarge/ETF Rewind Glossary)
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The first week of the New Year’s economic calendar features Auto Sales, release of the December FOMC Minutes, and the Monthly Jobs Report, as follows:

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December Year-End Summary

The month of December recorded dramatic across-the-board gains for the S&P 500, Dow Jones Industrials and NASDAQ 100 cash indices of +6.53%, +5.19% and +4.75%, respectively. This left the indices higher by +12.78%, +11.02% and +19.22% for the year, excluding dividends. Style and sector performances at month-end and for the year are shown below:

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Interestingly, even though the NASDAQ 100 (QQQQ) posted the strongest index return, it was the Industrials (NYSEARCA:XLI) and Consumer Discretionaries (NYSEARCA:XLY) that recorded the largest overall sector gains approaching 30%.

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