Winners And Losers For The Week

For the week, the Dow up 3.6%, Transports up 5.4%, S&P up 2.9%, NASDAQ up 4.5%. Best week for all four since April.

Many cross-currents:

--lower commodities help, but concerns about slower global growth persist

Winners this week:

--autos, retailers, airlines


--energy, materials

Things have changed. Consider that one month ago:

--oil was at $145
--commodity stocks were slowly coming off historic highs
--the dollar was near historic lows against the euro
--financials were at their lowest levels in over 10 years

All of these conditions have now reversed:

--oil is 21 percent off its high
--commodity and energy stocks are down more than 20 percent on average
--the dollar is at 6-month highs
--financials are off their lows

Financials may be off their lows, but they are not outperforming. What is? Of big cap stocks, the big winners this week were Consumer dscretionary stocks (retailers and autos), as well as techs. Consumer discretionary are benefiting from lower oil, but why techs? Sector rotation: with financials still a mess, energy a tough call, techs are a relatively safe rotation, but even here the strong dollar makes it tougher for firms like Hewlett-Packard.

Questions? Comments?