S&P 500 Sector Tracker Heatmap excellent tool for screening

Select Sector SPDR Sector Tracker is an excellent tool for screening US stock sectors, individual stocks in the S&P 500 for performance and relative strength. I use it to look for winners and losers where my philosophy is to buy winners and sell losers. Some posts like thisthis and this illustrate what I look for.

Sector Overview set to 2016 YTD showing US stocks sector performance

Sector Overview set to 2016 YTD showing US stocks sector performance | Source: Select Sector SPDR

  1. If I think that risks will heighten, ‘Utilities’ is a sector to look at. Not only is it defensive, it is also the sector doing the best YTD despite January and early Feb-turmoil.
  2. Financials Services and Financials are obviously not doing well for varied reasons. Long term investors worried about risk may want to diversify away from these sectors. Speculators who think risk aversion and selling will come back, then going short these sectors might provide short term outperformance.
  3. The important thing is there is no single approach to this tool. Each individual can really personalise an approach to this screener depending on search motive and time frame.
  4. If your investing strategy stops at the sector level, this table provides immediately the sector-based ETFs to look at although non-Select Sector SPDR exchange traded funds are not included.

 

A heatmap provides an alternative view especially for those who like it visual.  The additional information embedded in the heatmap is the size of each box which shows the size of each sector relative to the entire S&P 500 pie.

Select Sector SPDR Sector Heatmap set to 2016 YTD

Select Sector SPDR Sector Heatmap set to 2016 YTD

And if you clicked on each sector box, individual stocks in the sector shows up, which depending on your buy/sell strategy, you know which winner/loser to look for.

Selector Sector SPDR Financial Services heatmap YTD

Selector Sector SPDR Financial Services heatmap YTD

  1. Green for winners and pink for losers.
  2. Stocks like Nasdaq NDAQ and Berkshire Hathaway BRK.b are best performers (dark green) while Morgan Stanley MS and Lincoln National Corp LNC are worst performers (red).
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Soh Tiong Hum is Director of TerraSeeds Market Technician Pte Ltd. TerraSeeds is a trading educator in Singapore since 2005.   Soh's Twitter account @sohtionghum was ranked #23 out of The Top 70 Twitter Accounts To Follow In 2015 by MahiFX.   Disclaimer notice: "I do not have a financial advisor's license. I am not qualified by any regulator to give financial advice. I do not know you the reader. Your investment means and motive may be different from me. My posts here are based on observations and meant for education. I am not responsible for for any consequence from your actions."
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