Helping Self-Directed Investors Succeed Blog - Three Sectors Outperforming The Broader Market in November 2018

Three Sectors Outperforming the Broader Market in November as of Nov 9th, 2018

November 9th, 2018

The week of mid-term elections in the US was predictably volatile. It all started with tremendous uncertainty culminating in a huge gap-up on Wedneday after the results were out. With the GOP outnumbered in the House, investors appear to believe as of now, there is some check and balance which can help business over the long term.

For the month the S&P 500 Tracking ETF - SPY is up +2.63%. The Dow 30 Tracking ETF - DIA has been showing superior price action gaining +3.53% while the Tech Heavy NASDAQ 100 Tracking ETF - QQQ is up just +1.00%. The Small Caps are trailing and the leadership shown by the Software and Semi Conductor sectors has been questioned this month.

Three sectors are showing better price strength this November and they have outperformed the broader market respectably. The S&P Health Care Services Sector SPDR ETF - XHS has gained +5.78% this month which is indeed impressive considering the volatility. The S&P Health Care Sector SPDR ETF - XLV is up by a respectable +4.79% followed by the S&P Aerospace Sector SPDR ETF - XAR which has moved higher by +4.70%.

Among these three top sectors SPDR ETFS - XHS has been a clear leader of the pack even year to date. XHS is up a stunning +22.47% for the year. Both XLV and XAR have also gained over 10% but the wide gap between these ETFS is apparent. Among these three XAR appears to be showing lesser volatility this week.

The NASDAQ is still in a danger zone from a technical perspective and this is somewhat concerning. Self-directed investors may want to keep an eye on the NASDAQ's price action this up coming week before making any decisions on taking a side in this market.

Good Luck and Happy Investing!

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