Momentum Screen

Track the long-term trends of market-leading sectors

The long-term trends of all 40 Fidelity domestic sector funds are assessed daily using technical indicators. The funds are then rank ordered based on their price momentum. Investments representing the leading bullish sectors (highlighted in blue) are further evaluated on the fund ratings page.

Thu, Jan 17 2019, 21:13 EDT.



Outperformers

Rank* 3 mo. gain Fund name, industry and quote Long-term trend
1.
   
7.7% Fidelity Select Automotive (FSAVX)
Consumer Cyclical,   Quote: 32.59 0.22 (0.68%)
Bullish
2.
   
2.09% Fidelity Real Estate Investment (FRESX)
Real Estate,   Quote: 40.60 0.18 (0.45%)
  Bearish
3.
   
1.15% Fidelity Select Gold (FSAGX)
Precious Metals,   Quote: 17.64 0.01 (0.06%)
Bullish
4.
    +4
0.37% Fidelity Select Leisure (FDLSX)
Consumer Cyclical,   Quote: 13.48 0.10 (0.75%)
  Bearish
5.
    -1
-0.1% Fidelity Select Brokerage and Inv Mgmt (FSLBX)
Financials,   Quote: 68.64 -0.03 (-0.0437%)
Bullish
6.
    -1
-0.36% Fidelity Select Construction & Housing (FSHOX)
Real Estate,   Quote: 49.81 -0.03 (-0.0602%)
  Bearish
7.
    +3
-0.79% Fidelity Select Environment & Alt Energy (FSLEX)
Industrials,   Quote: 22.66 0.29 (1.30%)
  Bearish
8.
    -1
-1.09% Fidelity Select Insurance (FSPCX)
Financials,   Quote: 56.24 0.26 (0.46%)
  Bearish
9.
    -3
-1.16% Fidelity Select Multimedia (FBMPX)
Consumer Cyclical,   Quote: 71.87 0.36 (0.50%)
  Bearish
Alert: trend can change
10.
    +8
-1.61% New Outperformer  
Fidelity Select Medical Equipment (FSMEX)
Health Care,   Quote: 49.51 0.56 (1.14%)
  Bearish
11.
    +2
-2.12% New Outperformer  
Fidelity Select Consumer Discretionary (FSCPX)
Consumer Cyclical,   Quote: 42.50 0.25 (0.59%)
  Bearish
    * The rank and the daily change of rank are calculated using the three-month total return, a commonly used measure of price momentum.

Market Performers**

Rank 3 mo. gain Fund name, industry and quote Long-term trend
12.
   -1
-2.32% Fidelity Select Software & Computer Svcs (FSCSX)
Technology;   Quote: 17.23 0.10 (0.58%)
  Bearish
13.
   +11
-2.63% Fidelity Select Materials (FSDPX)
Materials;   Quote: 66.29 1.02 (1.56%)
New Bullish Trend
14.
   +7
-2.68% Fidelity Select Health Care (FSPHX)
Health Care;   Quote: 23.60 0.18 (0.77%)
  Bearish
15.
   -1
-2.94% Fidelity Select Financial Services (FIDSX)
Financials;   Quote: 9.25 0.06 (0.65%)
  Bearish
16.
   +11
-3% Fidelity Select Biotechnology (FBIOX)
Health Care;   Quote: 20.02 0.15 (0.75%)
  Bearish
17.
   +6
-3.06% Fidelity Select Semiconductors (FSELX)
Technology;   Quote: 8.25 0.08 (0.98%)
  Bearish
18.
   +11
-3.28% Fidelity Select Banking (FSRBX)
Financials;   Quote: 24.80 0.23 (0.94%)
  Bearish
19.
   -10
-3.42%New Market Performer  
Fidelity Select Telecom & Utils (FIUIX)
Utilities;   Quote: 25.15 0.04 (0.16%)
  Bearish
20.
   
-3.54% Fidelity Select Pharmaceuticals (FPHAX)
Health Care;   Quote: 19.88 0.19 (0.96%)
  Bearish
21.
   -5
-3.55% Fidelity Select IT Services (FBSOX)
Technology;   Quote: 58.45 0.41 (0.71%)
  Bearish
22.
   -10
-3.56% Fidelity Select Consumer Finance (FSVLX)
Financials;   Quote: 14.61 0.08 (0.55%)
  Bearish
23.
   +7
-3.57% Fidelity Select Chemicals (FSCHX)
Materials;   Quote: 12.97 0.20 (1.57%)
  Bearish
24.
   -2
-3.59% Fidelity Select Retailing (FSRPX)
Consumer Cyclical;   Quote: 14.50 0.05 (0.35%)
  Bearish
25.
   -6
-3.9% Fidelity Select Communications Equipment (FSDCX)
Technology;   Quote: 35.76 0.02 (0.06%)
  Bearish
26.
   +2
-4.15% Fidelity Select Transportation (FSRFX)
Industrials;   Quote: 89.43 1.40 (1.59%)
  Bearish
27.
   -2
-4.29% Fidelity 500 Index (FXAIX)
Benchmark;   Quote: 91.66 0.70 (0.77%)
  Bearish
28.
   -13
-4.35% Fidelity Select Utilities (FSUTX)
Utilities;   Quote: 80.31 0.32 (0.40%)
  Bearish
29.
   +2
-5.15% Fidelity Select Air Transportation (FSAIX)
Industrials;   Quote: 69.21 0.93 (1.36%)
  Bearish
30.
   -13
-5.19% Fidelity Select Consumer Staples (FDFAX)
Consumer Staples;   Quote: 72.12 0.57 (0.80%)
  Bearish
31.
   +1
-5.65% Fidelity Select Medical Delivery (FSHCX)
Health Care;   Quote: 92.07 -0.40 (-0.4326%)
  Bearish
32.
   -6
-5.87% Fidelity Select Telecommunications (FSTCX)
Telecom;   Quote: 55.48 -0.05 (-0.09%)
  Bearish
    ** A fund is considered a market performer when its three-month return is within +/- 2% of the return of the benchmark S&P 500 index fund.

Underperformers

Rank 3 mo. gain Fund name, industry and quote Long-term trend
33.
    +1
-7.23% Fidelity Select Industrials (FCYIX)
Industrials,   Quote: 30.53 0.41 (1.36%)
  Bearish
34.
    +1
-7.31% Fidelity Select Defense and Aerospace (FSDAX)
Industrials,   Quote: 15.08 0.23 (1.55%)
  Bearish
35.
    -2
-8.17% Fidelity Select Wireless (FWRLX)
Telecom,   Quote: 8.43 0.01 (0.12%)
  Bearish
36.
    +1
-10.62% Fidelity Select Technology (FSPTX)
Technology,   Quote: 13.97 0.10 (0.72%)
  Bearish
Bottom 5 Underperformers
Rank 3 mo. Fund name, Industry and Quote Trend
37.
    -1
-11.1% Fidelity Select Computers (FDCPX)
Technology,   Quote: 70.46 0.23 (0.33%)
  Bearish
38.
   
-12.37% Fidelity Select Natural Resources (FNARX)
Energy,   Quote: 24.66 0.21 (0.86%)
  Bearish
39.
   
-15.55% Fidelity Select Energy (FSENX)
Energy,   Quote: 36.82 0.36 (0.99%)
  Bearish
40.
   
-16.8% Fidelity Select Natural Gas (FSNGX)
Energy,   Quote: 20.15 0.17 (0.85%)
  Bearish
41.
   
-28.68% Fidelity Select Energy Service (FSESX)
Energy,   Quote: 29.32 0.36 (1.24%)
  Bearish

Explain

Relative strength is a technical analysis method that calculates the strongest performers, compared to the overall market.

Relative Strength Ranking

First, we determine the price momentum for each sector fund using the Rate of Change (RoC) indicator. RoC measures the total return of each fund over a period of time. Since our focus is to capture seasonal changes of the equity market, we use the three-month total return for this calculation.

Next, we compare the momentum of the sector funds to the benchmark S&P 500 index fund to identify outperforming and underperforming investments.


Changing Market Conditions

Our sector rotation strategy aims at investing in the fastest growing industry groups during a given stage of the market cycle. However, shifts in sentiment can occur rapidly, often due to economic and geopolitical events, or industry specific catalysts.

The changing market conditions make it important to keep an eye on the daily changes of both the relative strength and the long-term trends of all sectors in order to generate new investment ideas and to avoid risks.



What to look for?   Examples of new investment opportunities include outperformers that turn from bearish to bullish, or bullish funds that become outperformers. When the equity market turns negative, we also keep track of sector funds that become underperformers and bullish sectors that suddenly start a correction.

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© 2018 Axiomix, Inc.

Axiomix, Inc. is not a registered investment adviser. The material provided on this website is for general informational purposes only and is not intended as investment advice. Past performance does not guarantee future results.