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Industry Group Analysis
This Week: Big Chart Update for the Week of October 29 1. Introduction 2. Groups That Are Heating Up 3. Groups That Are Cooling Off 4. On The Radar Screen This Week 5. Disclaimer ***********************Our Sponsor************************* Top Wall Street Watcher Ben Zacks: +43.6%/Year Since 1996 Moving with the best and brightest of Wall Street's big- money machines earned Ben Zacks a +43.6% average annual return since February 1996. Start outperforming long-term. Get Zacks' latest 11-stock buylist with your FREE trial: http://www.investools.com/c/go/ZAKS/WSCE-zaksTA1?s=S600 ********************************************************** 1. Introduction Highlighted in this week's Big Chart update are the surprising performance of Home/Furniture {.HFU} and the not so surprising performance of Drugs/Biotechnology {.DBI}. Rankings for both groups have been rising, albeit for different reasons. On the downside, the plummeting rank in Financial/Consumer Loan {.FCL} is discussed. Industry Group Analysis is just another of the many great reasons to be a subscriber to the WallStreetCity website. Besides great industry group analysis and incredible stock analysis, you also get access to the world's most powerful stock screening tool on the planet, ProSearch, all in one subcription package. However, we give you a 30-day FREE trial to this service to make sure it suits you, so give us a try. Click below to take a 30-day FREE trial. http://subs.wallstreetcity.com/c/go/XPRO/WSCE-bc102901?s=S601&D=XWSC ____________________________________________________________ 2. Groups That Are Heating Up Furniture stocks have been performing very well over the past several weeks, evidenced by the four-week rise in Home/Furniture {.HFU}. Attracting investors to the group has been strength in the upholstered segment as consumers are opting for new chairs and sofas, which has helped sales at Furniture Brands {FBN} and La-Z-Boy {LZB}. Hardly anybody's first guess as a industry segment that would fair well during an economic contraction, the surprisingly strong performance of upholstered furniture is reflective of three trends: lifestyle changes oriented towards updating home interiors on a regular basis, a cheaper price than full room sets or wood furniture, and an inclination to stay home and watch television. Not so surprising has been the performance of Drugs/Biotechnology {.DBI}, which has risen in rank for four consecutive weeks. Anthrax bioterrorism has boosted the stocks of several small companies, while earnings, drug research news events, and a higher tolerance for premium valuations have caused buying pressure in many of the stocks with larger market capitalizations. How sustainable this momentum is, however, may be tied to overall performance of the Nasdaq and its ability to stay above its 50-day moving average. Among those stocks that have been trending upward are Corr Therapeutics {CORR}, Transkaryotic {TKTX}, Aviron {AVIR}, and Millennium Pharmaceuticals {MLNM}. Other groups with rising rankings include Chemicals {.CHE}, Computer/Computer Services {.DSE}, Drugs/Research {.DRE}, Home/Housewares {.HSW}, and Retail/Stores/Warehouse Clubs {.RWC}. To view the Big Chart click the link below. http://www.wallstreetcity.com/commentary/commentary_group_rotation.asp ____________________________________________________________ 3. Groups That Are Cooling Off Rankings for Financial/Consumer Loan {.FCL} have plummeted from the 83rd percentile to the 39th percentile over the past five weeks on concerns that loan default rates may rise. Both Americredit {ACF} and Metris {MXT} have seen their stock prices fall by 20 percent or more during the past two weeks as investors fear that the rising joblessness rate will force many consumers into financial problems. Americredit provides subprime automobile loans, while Metris offers credit cards to subprime borrowers. Other groups with declining rankings include Banks/Savings & Loan {.BSL}, Electronics/Household Appliances {.EHA}, Finance/Services {.FSE}, and Food/Meat-Poultry {.FMP}. To view the Big Chart click the link below. http://www.wallstreetcity.com/commentary/commentary_group_rotation.asp ____________________________________________________________ 4. On The Radar Screen This Week The retail sector should start coming into play over the course of the next few weeks as investors digest data out of three key events. First are Halloween-related sales - better than expected revenues will suggest that consumers are putting the anthrax scares behind them, while worse than expected sales could suggest that consumer confidence remains fragile. Secondly, third quarter earnings season will be starting for the sector and analysts will be paying close attention what inventory levels are at and the extent to which retailers are relying on promotional pricing to drive store traffic. Finally, the holiday shopping season is beginning to warm up and will viewed as a proxy for judging the overall state of the economy. To view the Big Chart click the link below. http://www.wallstreetcity.com/commentary/commentary_group_rotation.asp ***********************Our Sponsor************************* "Top 10 for 2001" Reaps +29.8% Gain! New Buys Just Released! Investors who bought Frank Curzio's "Top 10 for 2001" portfolio of bulletproof stocks netted a healthy +29.8% YTD. What's he buying now? He just added a new position to his list of favorites. The FXC Newsletter, FREE for 30-days: http://www.investools.com/c/go/EFEX/WSCE-efexTD4?s=S600 ********************************************************** 5. Disclaimer WallStreetCity's Industry Group Analysis is published solely for informational purposes and is not a solicitation or an offer to buy or sell any stock, mutual fund or other security. The information obtained from internal and external sources is considered reliable, but has not been independently verified for accuracy and completeness. WallStreetCity, its employees, and/or officers and directors, may from time to time have a position in the securities mentioned and may sell or buy such securities. Trading involves risk, including possible loss of principle and other losses. Trading results may vary. No representations are being made that these techniques will result in or guarantee profits in trading. Past performance is no indication of future results. 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