Best and Worst of 2006
Only two trading days remain in the year and, in the absence of any market nosedives between now and Friday, bulls will probably be pleased with the stock market’s performance in 2006. The S&P 500 Index ($SPX) has added a respectable 14.3%, the Dow Jones Industrial Average ($INDU) is up 16.74% to record highs, and the NASDAQ ($COMPQ) is up 10.24%.The gains aren’t limited to the large cap stocks of the Dow, S&P 500, or NASDAQ. The Russell 2000 Small Cap Index ($RUT) gained 18.5% and the S&P MidCap Index ($MID) rose more than 10%. In addition, nearly every sector of the market moved higher as well. Steel stocks were among the best gainers. Investor appetite for steel companies rose amid merger hopes and better pricing for the metal. So, despite concerns about slowing demand from autos and housing, stocks like AK Steel (AKS) and Chaparral Steel (CHAP) surged more than 100%. The SIG Steel Producers Index ($STQ) is up nearly 50% on the year. Tech stocks traded mostly higher. Computer stocks led the sector in 2006. The GSTI Computer Index ($GHA) surged 31.65% since December 31, 2005. Internet and software stocks also did well. However, semiconductors did not. The PHLX Semiconductor Index ($SOX) is off 2% and, at 469.97; the chip index is below its 2003 closing value of 508.21 The Dogs of the Dow ($MUT) made a comeback. The investment strategy, which involves buying the ten Dow stocks with the highest dividend yields at the beginning of the year, delivered a 27% return so far in 2006. The advance follows an 8.85% decline in 2005. Energy stocks continued their dominant performance. The Select Sector Energy Fund (XLE), which holds all of the energy-related stocks from within the S&P 500 Index, is up 18%. The gains add to a 23.4% advance in 03, a 31.8% rally in 04, and a 38.5% surge last year. Major oil companies led the rally. The AMEX Oil Index ($XOI) is up 21.4%. Meanwhile, the AMEX Natural Gas Index ($XNG) has added 12.53% and the PHLX Oil Service Index ($OSX) gained 11.1%.Brokers and banks helped lift the financials. The Select Sector Financial Fund (XLF) rallied 17.21%. Commodity-related stocks, consumer staples, retailers, and cyclicals also beat the S&P 500 Index. Utilities, airlines, and gold mining stocks also did well in 2006.
By Frederic Ruffy, Optionetics.comLabels: AKS, CHAP, GHA, MUT, OSX, SOX, STQ, XLE, XLF, XNG, XOI
posted by Stock Administrator @ 12:33 AM
Best and Worst of 2006
Only two trading days remain in the year and, in the absence of any market nosedives between now and Friday, bulls will probably be pleased with the stock market’s performance in 2006. The S&P 500 Index ($SPX) has added a respectable 14.3%, the Dow Jones Industrial Average ($INDU) is up 16.74% to record highs, and the NASDAQ ($COMPQ) is up 10.24%.The gains aren’t limited to the large cap stocks of the Dow, S&P 500, or NASDAQ. The Russell 2000 Small Cap Index ($RUT) gained 18.5% and the S&P MidCap Index ($MID) rose more than 10%. In addition, nearly every sector of the market moved higher as well. Steel stocks were among the best gainers. Investor appetite for steel companies rose amid merger hopes and better pricing for the metal. So, despite concerns about slowing demand from autos and housing, stocks like AK Steel (AKS) and Chaparral Steel (CHAP) surged more than 100%. The SIG Steel Producers Index ($STQ) is up nearly 50% on the year. Tech stocks traded mostly higher. Computer stocks led the sector in 2006. The GSTI Computer Index ($GHA) surged 31.65% since December 31, 2005. Internet and software stocks also did well. However, semiconductors did not. The PHLX Semiconductor Index ($SOX) is off 2% and, at 469.97; the chip index is below its 2003 closing value of 508.21 The Dogs of the Dow ($MUT) made a comeback. The investment strategy, which involves buying the ten Dow stocks with the highest dividend yields at the beginning of the year, delivered a 27% return so far in 2006. The advance follows an 8.85% decline in 2005. Energy stocks continued their dominant performance. The Select Sector Energy Fund (XLE), which holds all of the energy-related stocks from within the S&P 500 Index, is up 18%. The gains add to a 23.4% advance in 03, a 31.8% rally in 04, and a 38.5% surge last year. Major oil companies led the rally. The AMEX Oil Index ($XOI) is up 21.4%. Meanwhile, the AMEX Natural Gas Index ($XNG) has added 12.53% and the PHLX Oil Service Index ($OSX) gained 11.1%.Brokers and banks helped lift the financials. The Select Sector Financial Fund (XLF) rallied 17.21%. Commodity-related stocks, consumer staples, retailers, and cyclicals also beat the S&P 500 Index. Utilities, airlines, and gold mining stocks also did well in 2006.
By Frederic Ruffy, Optionetics.com
By Frederic Ruffy, Optionetics.com
Labels: AKS, CHAP, GHA, MUT, OSX, SOX, STQ, XLE, XLF, XNG, XOI
posted by Stock Administrator @ 12:33 AM
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