#3: Bestsectors.com
Newsletter Monthly Review
Bestsectors.com
Year 2010 Note 2
Date as of March, 2010
Dear Subscriber,
February’s market brought back some gains in the funds that we are currently invested in right now. At the end of both February and the 8th trading week of the year, here is where we stand:
· Dow: -0.74% this week & -0.99% for year
· S&P 500: -0.42% this week & -0.95% this year
· Nasdaq: -0.25% this week & -1.36% this year
· Russell 2000: -0.48% this week & +0.51% this year
Our own portfolio is down 2.0 % for the year, compared to last month in which we were down 7.7 %. In general, we had a very good month making 3.8%. I think we are at a critical point in the market starting this week. As you know, March is the month in which a year ago the market collapsed before gaining its footing and having a great year. The question is: Will the market repeat the same trend as it did last March? In other newsletters, I have provided you with information in which I believe we will have another good year in the market. I must tell you that I am anxious about the month of March and especially this week. It will be interesting to see what will happen. So far we have seen a lot choppy movement in the market. The Bears are waiting for the markets to tip over and go to the downside. The Bulls are waiting for the markets move upward and start the next bull run. I really believe that this month will be the month were we see where these markets are going to go.
I will be going through some of the charts of the positions that Bestsectors currently holds and also going through our current ranking of our Fidelity funds. We then will spend some time on the new changes coming to the website that I hope will help you to become a better investor and allow you an opportunity to have more information to do a better job managing your own retirement.
The first chart is the XLK (Technology Select Sector SPDR). As you can see from the chart, we are well above the 50 day moving average. We also have the 50 day moving average in a nice up trend. Also from the chart you see that in January, we had a drop as noted by the two big red candles. In February, we started to gain some of that loss position back in the SPDR. Again, from the RSI you can see we drop from 70 to 50. Since then, we have rallied back to 55.42. The question for March is: Will the RSI continue its upward trend back to 70 and will we continue that nice upward trend in 50 MA? Technology earnings have come in great for most companies. Jonathan Burton wrote an excellent article in the Wall Street Journal about the tech sector. Jonathan, along with Brian Belski, shares my view as an investor with regard to earning growth. "Tech is by far outpacing all the other sectors in terms of earnings growth," said Brian Belski, Chief Investment Strategist at Oppenheimer Asset Management. Brian rates technology as his top sector. "Technology will be an earnings-growth driver for the next several quarters." To read the entire article click on the following link: Fund Track: As Tech Stumbles, Some See an Opening - WSJ.com.
I believe that technology will be a sector that you will want to be in for the coming quarters. We have had just too many good earning reports. I see technology being about half way up the escalator and if you have read my entire website you will understand what I mean. Some other sectors that have stirred my interest include following: Medical Delivery (FSPHX), Leisure (FDLSX), and Defense & Aerospace (FSDAX). If the technology does not move like I think going to, then I will look to move perhaps into these sectors provided that they continue there upward trend.
The Fidelity Select Technology fund is currently one of Bestsectors largest holdings. The chart provides you with a historical pricing of the fund. Again, you can see that we have had a nice upward trend from 2009. Fidelity’s website does an excellent job of providing the individual investor with the top ten holdings within the fund. Once I have that information, it allows me to further break down the fund with both fundamental and technical work. I have provided you with the top ten holdings below. If you really want go the extra mile, you can check daily, weekly or obviously monthly, how each company performed. As you can see from the chart on the right, the top ten stocks influence almost 45% of the fund. The names listed in the fund for the most part had excellent earning reports.
Top Ten Holdings
44.94% of Portfolio
Total Number of Holdings: 225
The Fidelity Select Software/Computer fund is another holding that I have in my Fidelity account. As you see, this account has a large holding percentage (almost 70%) of the top ten companies. Again, do your research, then check the fundamentals and technical’s on each of the top ten companies to determine if the fund is right for you.
Top 10 Holdings
as of 12/31/2009
|
MICROSOFT CORP |
|
GOOGLE INC A |
|
ORACLE CORP |
|
VISA INC CL A |
|
COGNIZANT TECH SOLUTIONS CL A |
|
BMC SOFTWARE INC |
|
ADOBE SYSTEMS INC |
|
EBAY INC |
|
NUANCE COMMUNICATIONS INC |
|
CITRIX SYSTEMS INC |
|
Get Quote for FSCSX: Fidelity Investments |
69.46% of Portfolio
Total Number of Holdings: 73
Fidelity Select Computers is my final holding in my Fidelity account. It is also the smallest holding in my fund. Again, I have provided you with the top ten holding within the fund. I would point out that almost all of the top ten holdings had positive earning reports. Those of you that read the newsletter might think that I am overly invested in technology. I would agree with you, all of my holdings in this Fidelity account are all technology. But remember what said on my website before, you individually manage your account. For those of you that do not want to check your holdings daily or weekly or for that matter monthly, I would not encourage this type of fund investing for you. For someone like me who watches my holdings closely, I am comfortable being all in technology.
Top 10 Holdings
as of 12/31/2009
72.42% of Portfolio
Total Number of Holdings: 60
The Sector Chart:
Remember that our strategy is based on longer-term trends. Our sector funds may not change dramatically from one month to the next.
|
Rank of Sectors
1-41 |
Strength Number
1-100 |
Sector & Symbol
February 2010 |
Rank of Sectors |
Strength Number |
Sector & Symbol
January
2010 |
|
1 |
100 |
Health Care (FSPHX) |
1 |
98 |
Health Care (FSPHX) |
|
2 |
70 |
Software/Computer Svcs
(FSCSX) |
2 |
92 |
Software/Computer Svcs
(FSCSX) |
|
3 |
68 |
Technology (FSPTX) |
3 |
88 |
Technology (FSPTX) |
|
4 |
57 |
Medical Delivery (FSHCX) |
4 |
62 |
Chemicals (FSCHX) |
|
5 |
52 |
Leisure (FDLSX) |
5 |
59 |
Computers (FDCPX) |
|
6 |
50 |
Defense & Aerospace
(FSDAX) |
6 |
58 |
Food & AG (FDFAX) |
|
7 |
49 |
Chemicals (FSCHX) |
7 |
56 |
Industrial Mat. (FSDPX) |
|
8 |
47 |
Computers (FDCPX) |
8 |
54 |
Medical Delivery (FSHCX) |
|
9 |
45 |
Food & AG (FDFAX) |
9 |
48 |
Leisure (FDLSX) |
|
10 |
43 |
Multimedia
(FBMPX) |
10 |
43 |
Multimedia (FBMPX) |
|
11 |
42 |
Retailing (FSRPX) |
11 |
41 |
Retailing (FSRPX) |
|
12 |
40 |
Industrial Mat. (FSDPX) |
12 |
39 |
Defense & Aerospace
(FSDAX |
|
13 |
39 |
Biotechnology (FBIOX) |
13 |
37 |
Automotive (FSAVX) |
|
14 |
36 |
Transportation (FSRFX) |
14 |
36 |
Financial Services
(FIDSX) |
|
15 |
35 |
Insurance (FSPCX) |
15 |
35 |
Insurance (FSPCX) |
|
16 |
35 |
Automotive (FSAVX |
16 |
34 |
Industrial Equipment
(FSCGX) |
|
17 |
32 |
Industrial Equipment
(FSCGX) |
17 |
33 |
Transportation (FSRFX) |
|
18 |
30 |
Electronics (FSELX |
18 |
32 |
Electronics (FSELX) |
|
19 |
29 |
IT Services/Outsourcing (FBSOX) |
19 |
30 |
IT Services/Outsourcing (FBSOX) |
|
20 |
28 |
Cyclical Industries (FCYIX) |
20 |
29 |
Brokerage/Invt.Mgt
(FSLBX) |
|
21 |
25 |
Medical Equipment/Systems (FSMEX) |
21 |
28 |
Cyclical Industries (FCYIX) |
|
22 |
23 |
Energy Service (FSESX) |
22 |
24 |
Energy Service (FSESX) |
|
23 |
22 |
Energy (FSENX) |
23 |
23 |
Energy (FSENX) |
|
24 |
21 |
Brokerage/Invt.Mgt
(FSLBX) |
24 |
22 |
Telecom &Utilities (FIUIX) |
|
25 |
20 |
Air Transportation (FSAIX) |
25 |
20 |
Telecommunications (FSTCX) |
|
26 |
19 |
Telecom &Utilities (FIUIX) |
26 |
19 |
Utilities Growth (FSUTX) |
|
27 |
18 |
Telecommunications (FSTCX) |
27 |
17 |
Medical Equipment/Systems (FSMEX) |
|
28 |
16 |
Medical Equipment/Systems (FSMEX) |
28 |
16 |
Air Transportation (FSAIX) |
|
29 |
15 |
Consumer Discretionary (FSCPX) |
29 |
16 |
Pharmaceuticals (FPHAX) |
|
30 |
14 |
Pharmaceuticals (FPHAX) |
30 |
15 |
Biotechnology (FBIOX) |
|
31 |
13 |
Home Finance (FSVLX) |
31 |
15 |
Banking (FSRBX) |
|
32 |
12 |
Natural Gas (FSNGX) |
32 |
11 |
Consumer Discretionary (FSCPX) |
|
33 |
11 |
Construction & Housing (FSHOX) |
33 |
10 |
Home Finance (FSVLX) |
|
34 |
9 |
Banking (FSRBX) |
34 |
8 |
Natural Gas (FSNGX) |
|
35 |
8 |
Natural Resources (FNARX) |
35 |
7 |
Construction & Housing (FSHOX) |
|
36 |
7 |
Select Communications (FSDCX) |
36 |
7 |
Natural Resources (FNARX) |
|
37 |
5 |
Wireless (FWRLX) |
37 |
4 |
Select Environmental Svcs (FSLEX) |
|
38 |
3 |
Utilities Growth (FSUTX) |
38 |
3 |
Wireless (FWRLX) |
|
39 |
2 |
Select Environmental Svcs (FSLEX) |
39 |
2 |
Sel. Comm. (FSDCX) |
|
40 |
1 |
Gold (FSAGX) |
40 |
1 |
Gold (FSAGX) |
|
41 |
41 |
Money Market (FSLXX) |
41 |
1 |
Money Market (FSLXX) |
Website Changes
I would like to spend some time talking about a few new features that I will be adding to the website over the coming months. First, I will be featuring a new page called “Market News”. I will be updating this page daily with news from the market from that day. I will provide you with what I am seeing and reading each day. The page will be updated later on in the evening to give me sometime after I get home from work to go through my information and provide you with some commentary and thoughts of where I think the market might be heading. This information will provide the investor some instant news instead of having to wait each month for the newsletter. As with my newsletter, most of this information will be geared towards sector information. On occasion, I will mention a stock or two that might be worth watching as it relates a particular sector. I will also provide you some of the articles or news that I have read through a hyperlink for those of you that do not use twitter. I will still post any news or information that I find important on twitter.
The second change to the website that I will begin to work on will be adding a page that will allow you on a daily basis to review all the various sectors within Fidelity. This page will allow you the opportunity to see some of the tools that I use to help me to identify the sectors that I believe will help grow your portfolio. I hope this page will help you to become a better investor by discussing and showing you what you should be looking for in order to have a better investment experience. That will do it for this months newsletter!
Best Wishes
Bestsectors
| 
