Watch List Addition: Energy Select Sector SPDR
If you look at the 5 year chart for the Energy Select Sector SPDR (XLE: 84.90 -1.27 -1.47%) you see a 300% gain with very few pull backs. The energy companies have been very profitable as oil prices have gone up and stayed high.
So I will add (XLE: 84.90 -1.27 -1.47%) to my Watch List page and start looking for some stocks to review. It appears we all should have some energy exposure in our portfolios.
Watch list addition: GLD
As part of my on going effort to give this site some meaningful investment information, I have set up a page called Watch List. This is to be a list of securities, primarily ETFs, that can be observed to see market trends in specific industries or sectors.
Yesterday I added the company Silver Wheaton to the 20 Stock Portfolio, so I thought StreetTRACKS Gold Shares (GLD: 92.06 -1.11 -1.19%) would be an appropriate ETF to track results in the precious metals sector. The 3 and 6 month charts do not show a definite trend, but their definitely have been some good opportunities to buy in.
Watch List update: ITB
As part of this blog I have added a watch list. These are securities that I have an interest in and want to keep an eye on, looking for trends. So far I have the large number if one item on the list. My plan is to add an item a week and review the list weekly.
Today I want to highlight the watch list item: (ITB: 13.79 -0.0276 -0.20%). ITB is an ETF of home-builders and related construction companies. If you believe the market is a leading indicator of the economy, this security could be a good leading indicator of the housing market.
The housing market will bottom out soon. From my prospective here is California, the peak was the summer/fall of 2005. The “forecasters” always put the recovery out about a year from today’s bad news. We will be well into the recovery before the “experts” recognize it and let everyone know on CNBC.
From a low of around $24 Monday morning, ITB is now trading at about $28.40, a gain of 18% in a little over two days. These two days do not a trend make, but it will be interesting to see if this turns out to be the low of the housing construction market.
Watch list: iShares U.S. Home Construction
Today’s news on home sales show sales of new homes continue to fall and the home builders are getting hammered. The iShares Home Construction ETF: ITB has fallen by 50% since coming out a little over a year ago.
For cyclical stock such as home-builders, yes home construction is cyclical, the share prices should start upward before the actual turn up in the home-building market.
So, ITB will be the first member of the Watch List of this blog. So I better write a watch list page, but you saw it here first.
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