Finding the current best performing sector will certainly help investors improve their returns. but this is a less important goal than avoiding the worst  performing sector(s). Even when most sectors are healthy, the ones that aren’t will restrict returns. This was certainly true in 2014.

The five best performing sectors were:

• XHJ (Healthcare) – with 21.75% increase in its index
• XPJ (REITs) – 20.4%
• XTJ (Telecommunications) – 14.56%
• XUT (Utilities) – 9.9%
• XNJ (Industrials) – 8.2%

XHJ

XUJ

XPJ

XTJ

XNJ – Uptrend interrupted by a retracement,

Five laggards that would have been best shunned in the second half of the year were:

XMM (Metals & Mining) – Down 20.75%

XEJ (Energy) – Down 14.86%

XMJ (Materials) – Down 14.5%

XEC (Emerging Companies) – Down 12.56%

XSJ (Consumer staples) – Down 8.4%

XMM – Worst performing sector

XEJ runs out of gas

XMJ led lower by BHP

XEC – Smaller cap stock sell-off at end of year.

XSJ – Break-out to downside from trading range.

Four other sectors:

• XGJ (Gold) –  Up 7.9%
• XFJ (Financial) – Up 6.5%
• XIJ (Information technology) – Up 5.56%
• XDJ (Consumer Discretionary) – Down 4.25%

XGJ – End of year rally

XFJ – 1Q uptrend into a trading range.

XDJ – End of year ended slightly lower.

XIJ – Rose a little more than it fell.

Categories: Chart Analyses, Trading opinion