The Right Sector at the Right Time

The following sector analysis performed by Bespoke Financial confirms that the GWM Equity Sector Rotation Model is currently positioned in the right sectors at the right time.

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Market Comment 01 09 11

While the long-term technical picture and the underlying fundamentals of the market remain quite positive, the short term picture has become a little less optomistic.  We were stopped out of a number of positions as the market experianced an increase in intraday volatility.

We view market pullbacks and signs of weakness as a potential threat to our account values.  All larger declines start with smaller declines. Since nobody can really know what the future holds, we have to rely on our stop-loss strategy for account protection.

Markets at the beginning of a new year typically have a lot of cross-currents. Market participants and money managers begin repositioning accounts for the coming year. The following S&P 500 Sector Performance Chart shows investors are rotating out of the basic materials and consumer staples and into the technology and health care sectors.

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QQQQ and XLK are examples of ETFs that are technology oriented.

XLB is an example of an ETF that represents the basic materials sector.

Click here to view the GWM Equity Sector Rotation Model Strategy.

2011 Tax Law Changes

Below is a link to a Wall Street Journal article on the 2011 Tax Law Changes.

Click the link to view the brief article.

http://online.wsj.com/article/SB10001424052748703675904576063903166546250.html

Important GWM Website Navigation Tip

Your online account viewing page merely lists your holdings by symbol, including today's price and possibley an abreviated name associated with the symbol. On the GWM Website we provide a link to a Google Financial page that describes each of your holdings in detail.

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Stopped out of two more positions

The market has been showing some downside volatility in a number of sectors. The US dollar has been rising; consequently oil and other commodities have been falling. Both foriegn and US stock have also been showing signs of stress.

We were stopped out of another two positions today.

Tomorrow's employment report is widely anticipated. We are expecting an improvement in the employment numbers. A good report would be a plus for the market.

Market Comment 01 04 11

Commodity related stocks and commodity based countries suffered a reversal today. Flooding in  Austrailia, a commodity rich nation, has become very a real problem. Mining and agriculture companies have taken a big hit. We were stopped out of EWA, our Australian ETF.

Commodites in general were hit today. Given their big rise last year and because of their inherent volatility, I felt it was prudent to take some of our basic material and country ETF holdings off the table. We will see how things settle out before re-entering this sector.

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