Saturday, November 1, 2008

Weekly Rewind - Week 44 (10/31/08)

(Click to Enlarge/ Glossary)

In a reversal of fortune to the good, last week saw October lows on Monday convert to sizable gains by Friday with the S&P 500 (SPY) finishing up +11.2% on what looked to be a rebalancing trade back into equities. As was the case for many stocks, the prior week's hardest hit ETF, Emerging Markets (EEM), was this one's big winner, posting a whopping +28.3% gain.

Along that same vein, the period's biggest sector winners were Energy, Consumer Discretionaries and Real Estate (XLE +17.8%; XLY +18.3%; IYR +18.0%). In contrast, Healthcare, Precious Metals and the US Dollar took a relative back seat on the week (XLV+3.5%; DBP +0.2%; UUP -1.4%). However, just as many equity ETFs were oversold last week, many are now pushing overbought on a very short-term basis even as bonds are oversold, and it would not be surprising to see some level of consolidation going into next week's national elections.

Week 44 of 2008 occurs in the midst of on-going earnings and will feature a busy economic calendar, including the big Friday Jobs report:

And Don't Forget to Vote -- Enjoy your weekend!

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