The volatility seen in equities continued in full swing this past week. US Markets had three solid up days and two down days.
Market breadth, after hitting multi-year lows, showed slight improvement after all was said and done at the end of the week.
As it stands clearly there are few sectors such as Home Builders, Biotechs, Semiconductors that have been beaten up hard.
The S&P 500 Tracking SPDR ETF (SPY) gave back much of the solid gains made during the year, in October but is
still holding a slight +1.41% gain for the year. The NASDAQ 100 Tracking ETF (QQQ) which was a clear leader
is still holding on to near double digit gains for the year despite tumbling hard this past month.
For the long term oriented self-directed investors there are still some good quality names that have withstood numerous
downturn cycles in the past and because of their unique strength may continue to do so in future.
Self-directed investors may want to keep an eye on these names and add to their long term watch list.
- The Sherwin Williams Company (SHW)
- Cognizant Technology Solutions Corporation (CTSH)
- Applied Materials Inc. (AMAT)
Among these three, AMAT has taken the hardest fall as semiconductor stocks across the board have fallen. SHW
has been affected by the overall slump in the home builder segment. CTSH is feeling the pressure that all
technology software services companies are facing.
When business climate improves over the long term these have a good chance of turning around.
Self-directed investors will want to perform more research on these stocks to see how appropriate this is for their own portfolios.
Good Luck and Happy Investing!