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EVENTS

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Wednesday, 11 January 2012

Money Flow in the Major Indices and Sectors From January 2011

The following graphs/charts (courtesy of www.Stockcharts.com) depict percentage gains and losses in the Major Indices and Sectors during several periods since the beginning of January 2011.

The first two charts show price action from January 3rd, 2011 to today's close. Prices topped in July of 2011 and bottomed in September.



The first two graphs (in histogram format) also show percentages gained and lost from January 3rd, 2011 to today's close. Overall, the Dow Utilities and Dow 30 Indices held up the best, while the Russell 2000 was the weakest. During that time period, the majority of money flowed into the defensive sectors, namely, Consumer Staples, Health Care, and Utilities, and flowed out of Financials.




The next two graphs show percentages lost from July 1st to October 3rd. Overall, the Dow Utilities and Nasdaq 100 held up the best, while the Russell 2000 and Dow Transports were the weakest. During that time period, the majority of money flowed out of the Financials, Materials, Industrials, Energy, and Consumer Discretionary sectors.



The next two graphs show percentages gained from October 3rd to today's close. Overall, the Russell 2000 and Dow Transports were the biggest gainers, followed by the S&P 500, Dow 30, and the Nasdaq 100. During that time period, the majority of money flowed into the Materials, Industrials, Energy, and Financials sectors.



The next two graphs show percentages gained from December 1st to today's close. Overall, the Dow Transports and Russell 2000 were the biggest gainers, followed by the S&P 500, Dow 30, and the Nasdaq 100. During that time period, the majority of money flowed into the Financials (a big differential here), followed by the Industrials, Materials, Health Care, and Consumer Discretionary sectors, and with less flowing into the Consumer Staples, Energy, and Utilities sectors.



The next two graphs show percentages gained and lost from January 3rd of this year to today's close. Overall, the Dow Transports and Nasdaq 100 were the biggest gainers, followed by the Russell 2000 and S&P 500, while the Dow 30 gained the least, and Dow Utilities declined. During that time period, the majority of money flowed into the Materials, Financials, Industrials, and Consumer Discretionary sectors, while money flowed out of the Utilities, Consumer Staples, and Energy sectors.



The next two graphs show percentages gained and lost this week. Overall, the Dow Transports and Russell 2000 were the biggest gainers, followed by the S&P 500 and Nasdaq 100, while the Dow 30 gained the least, and Dow Utilities declined. During that time period, the majority of money flowed into the Financials, Materials, Industrials, Health Care, and Consumer Discretionary sectors, while money flowed out of the Energy, Utilities, and Consumer Staples sectors.



Of the four Major Indices and in terms of percentages, the Russell 2000 lost the most from the beginning of July to October 3rd of 2011, while the Nasdaq 100 lost the least...the Dow 30 lost about half as much as compared with the Russell 2000. However, when we look at the next graph which shows percentages lost and gained from July 1st to today's close, we see that the Dow 30 has regained its losses much more than the Russell 2000...showing that the Russell 200 still has some catching up to do. We'll see if money flows continue to be strong in the Russell 2000 over the coming weeks. Indices to watch are the Dow 30 and Russell 2000, particularly since money flows into the Dow 30 have declined quite a bit from January 3rd of this year.


Of the Major Sectors, the Financials, Materials, Energy, and Industrials sectors lost the most from the beginning of July to October 3rd of 2011, while Utilities, Consumer Staples, and Health Care lost the least. When we look at the last graph which shows percentages lost and gained from July 1st to today's close, we see that gains have been made in all sectors at approximately the same rate. However, it appears that money has begun to flow out of the defensive sectors and into more risky assets from January 3rd of this year...we'll see if that trend continues in the coming weeks.