Drugs, Financials, Consumer Goods: Weak Sectors in Strong Market (ETFs: HHH, OIH, IAU, XLF, IYF, PPH, XLP)

by: Nick Perry

Nick Perry (Schaeffer's Investment Research) submits: As you can see from the chart below, there was an upside skew last week with only a few groups losing ground:

On the upside we find an eclectic mix of technology sub-groups, gold, and energy related ETFs along with some industrial groups. Weakness for the week was concentrated in drugs, financials, consumer goods and even a few select tech groups like software. For a longer-term perspective, the bullets below show the year-to-date returns for the ETFs listed above:

Year-to-Date Returns for This Week's Top Performing Sector Exchange Traded Funds:

* Internet HOLDRS (NYSE:HHH) -4.8%
* Oil Service HOLDRS (NYSEARCA:OIH) +40.4%
* iShares COMEX Gold Trust (NYSEARCA:IAU) n/a
* streetTRACKS Gold (NYSEARCA:GLD) +10.5%
* iShares Natural Resource (NYSEARCA:IGE) +28.7%
* iShares Energy (NYSEARCA:IYE) +29.1%
* Energy Sector SPDR (NYSEARCA:XLE) +34.1%
* iShares Semiconductor (IGW) +13.3%
* Industrial Sector SPDR (NYSEARCA:XLI) +0.5%
* iShares Industrial (NYSEARCA:IYJ) +2.2%

Year-to-Date Returns for This Week's Bottom Performing Sector Exchange Traded Funds:

* iShares Dividend Index (NYSEARCA:DVY) +0.8%
* iShares Cons Goods (NYSEARCA:IYK) -0.7%
* Financial Sector SPDR (NYSEARCA:XLF) +3.5%
* iShares Financial Sector (NYSEARCA:IYF) +3.2%
* iShares Financial Svcs (NYSEARCA:IYG) +0.4%
* Consumer Staples SPDR (NYSEARCA:XLP) +1.1%
* Regional Bank HOLDRS (NYSEARCA:RKH) -1.1%
* Wireless HOLDRS (NYSEARCA:WMH) +1.1%
* iShares Software Index (NYSEARCA:IGV) -3.9%
* Pharmaceutical HOLDRS (NYSEARCA:PPH) -7.3%

In my column two weeks ago I showed what groups had led off of previous bottoms and noted that some of the technology based groups like semis and Internet related ETFs were doing well. This week's returns seem to show that this trend continues. It is hard to say how long this momentum will last, but I wanted to point it out for nimble traders to notice but also as something to keep in mind in the future should we see similar types of sell-offs to what we saw in early-October.

Nick Perry (regressionchannels@sir-inc.com)