Matthew D. McCall's  Instablog

 

 

HOLDRS Internet ETF (HHH) - When it comes to the internet there is not much the administration can do to “mess with it” and that combined with the low valuations made the tech sector the big winner.  Up 30% in the first 100 days, the sector is sitting near a fresh 6-month high.

 

iShares Dow Jones US Broker-Dealers ETF (IAI) - Once it was clear that the administration was willing to throw trillions of dollars at the financial institutions, the broker-dealers rallied. The ETF was up 26% in the first 100 days, led by big gains in E-Trade Financial (ETFC), Goldman Sachs (GS), and Jefferies Group (JEF). More gains should be on the horizon, however the good ole days that many remember for the sector are not likely coming back anytime soon.

 

HOLDRS Oil Services ETF (OIH) - The price of oil stabilized during the first 100 days , helping OIH do the same and putting together a 25% gain. The OIH has a lot of work to do to get back to the high of $225 hit just last July, but with the help of the stimulus package, the economic recovery could boost the price of oil and OIH.

 

 

SPDR S&P Biotech ETF (XBI) - Down 14% and has been hit with the overall health care industry by the new administration. Investors are still unsure of which direction Obama will go with health care and the uncertainty has put a strain on the biotech stocks. The biggest loser in the ETF during the first 100 days was Biomarin Pharmaceuticals (BMRN), down 37%.

 

iShares Dow Jones US Insurance ETF (IAK) - Lost 8% even with a rally of over 30% off the early March lows. The insurance sector has been a victim of the financial crisis, except there is one difference. When money started to come back in the market recently it went to the banks, not the insurance stocks. The administration has not made any major moves that have affected the sector.

 

SPDRs Utilities ETF (XLU) - The utility stocks held up very well until mid-February when someone pulled the rug out from beneath them, losing 11% in the first 100 days. This was about the time investors were giving up on the market and even the sectors showing the best relative strength were hammered. The administration’s affect on the sector is related to nuclear energy. The US must begin building new nuclear power plants if they plan on lower our reliance on foreign oil and it does not look as if Obama will be moving in that direction anytime soon.