Momentum Screen

Track the long-term trends of market-leading sectors

The long-term trends of all 42 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.

Wed, Oct 18 2017, 21:12 EDT.



Outperformers

Rank* 3 mo. gain Fund name, industry and quote Long-term trend
1.
   
13.82% Fidelity Select Automotive (FSAVX)
Consumer Cyclical,   Quote: 40.03 0.18 (0.45%)
Bullish
2.
   
11.62% Fidelity Select Defense and Aerospace (FSDAX)
Industrials,   Quote: 164.91 0.16 (0.1%)
Bullish
3.
    +1
9.46% Fidelity Select Semiconductors (FSELX)
Technology,   Quote: 115.89 1.01 (0.87%)
Bullish
4.
    +2
7.99% Fidelity Select Air Transportation (FSAIX)
Industrials,   Quote: 86.8 0.3 (0.35%)
Bullish
5.
    +3
7.41% Fidelity Select Technology (FSPTX)
Technology,   Quote: 184.46 0.44 (0.24%)
Bullish
6.
    -1
7.3% Fidelity Select Chemicals (FSCHX)
Materials,   Quote: 180.68 -0.3 (-0.17%)
Bullish
7.
    +2
7.06% Fidelity Select Industrial Equipment (FSCGX)
Industrials,   Quote: 43.06 0.02 (0.05%)
Bullish
8.
    +2
7.05% Fidelity Select IT Services (FBSOX)
Technology,   Quote: 52.99 0.36 (0.68%)
Bullish
9.
    -6
6.78% Fidelity Global Commodity Stock (FFGCX)
Materials,   Quote: 12.6 -0.05 (-0.4%)
Bullish
    * 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
10.
   +2
5.76% Fidelity Select Industrials (FCYIX)
Industrials;   Quote: 35.64 0.05 (0.14%)
Bullish
11.
   -4
5.69%New Market Performer  
Fidelity Select Materials (FSDPX)
Materials;   Quote: 91.2 -0.06 (-0.07%)
Bullish
12.
   +1
5.52% Fidelity Select Transportation (FSRFX)
Industrials;   Quote: 100.3 0.39 (0.39%)
Bullish
13.
   +3
5.49% Fidelity Select Consumer Finance (FSVLX)
Financials;   Quote: 15.38 0.09 (0.59%)
Bullish
14.
   -3
5.06% Fidelity Select Construction & Housing (FSHOX)
Real Estate;   Quote: 65.55 -0.09 (-0.14%)
Bullish
15.
   +5
4.91% Fidelity Select Software & Computer Svcs (FSCSX)
Technology;   Quote: 164.64 0.61 (0.37%)
Bullish
16.
   +1
4.87% Fidelity Select Brokerage and Inv Mgmt (FSLBX)
Financials;   Quote: 80.73 0.54 (0.67%)
Bullish
17.
   +2
4.47% Fidelity Select Financial Services (FIDSX)
Financials;   Quote: 109.91 0.85 (0.77%)
Bullish
18.
   +7
4.09% Fidelity Select Biotechnology (FBIOX)
Health Care;   Quote: 230.55 -1.16 (-0.5%)
Bullish
19.
   +9
4.01% Fidelity Select Environment & Alt Energy (FSLEX)
Industrials;   Quote: 25.91 0.07 (0.27%)
  Bullish
20.
   +1
3.87% Fidelity 500 Index (FUSEX)
Benchmark;   Quote: 89.6 0.07 (0.08%)
  Bullish
21.
   +6
3.65% Fidelity Select Computers (FDCPX)
Technology;   Quote: 92.49 0.01 (0.01%)
Bullish
22.
   -4
3.57% Fidelity Select Gold (FSAGX)
Precious Metals;   Quote: 20.91 -0.16 (-0.77%)
  Bearish
23.
   -8
3.11% Fidelity Select Natural Resources (FNARX)
Energy;   Quote: 27.5 -0.16 (-0.58%)
Bullish
24.
   -10
3% Fidelity Select Energy (FSENX)
Energy;   Quote: 40.88 -0.27 (-0.66%)
Bullish
25.
   -3
2.82% Fidelity Select Leisure (FDLSX)
Consumer Cyclical;   Quote: 165 0.3 (0.18%)
  Bullish
26.
   
2.73% Fidelity Select Insurance (FSPCX)
Financials;   Quote: 87.76 0.3 (0.34%)
  Bullish
27.
   +4
2.64% Fidelity Select Utilities (FSUTX)
Utilities;   Quote: 84.25 -0.31 (-0.37%)
  Bullish
Alert: trend can change
28.
   -4
2.41% Fidelity Select Banking (FSRBX)
Financials;   Quote: 34.06 0.25 (0.73%)
  Bullish
29.
   -6
2.35% Fidelity Select Retailing (FSRPX)
Consumer Cyclical;   Quote: 123.42 -0.45 (-0.36%)
  Bullish
30.
   +2
2.16% Fidelity Select Wireless (FWRLX)
Telecom;   Quote: 9.94 -0.02 (-0.2%)
  Bullish
31.
   +2
1.95% Fidelity Select Telecom & Utils (FIUIX)
Utilities;   Quote: 26.72 -0.08 (-0.3%)
  Bullish
32.
   +2
1.89% Fidelity Real Estate Investment (FRESX)
Real Estate;   Quote: 42.53 -0.05 (-0.12%)
  Bullish
    ** 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.
    +4
1.11% Fidelity Select Health Care (FSPHX)
Health Care,   Quote: 233.11 -0.21 (-0.09%)
  Bullish
34.
    +1
1.03% Fidelity Select Consumer Discretionary (FSCPX)
Consumer Cyclical,   Quote: 39.29 -0.11 (-0.28%)
  Bearish
Alert: trend can change
35.
    +1
0.94% Fidelity Select Telecommunications (FSTCX)
Telecom,   Quote: 67.71 -0.08 (-0.12%)
  Bullish
36.
    -6
0.38% Fidelity Select Energy Service (FSESX)
Energy,   Quote: 45.22 -0.47 (-1.04%)
  Bullish
37.
    -8
0.21% Fidelity Select Natural Gas (FSNGX)
Energy,   Quote: 23.79 -0.14 (-0.59%)
  Bullish
38.
   
0.21% Fidelity Select Pharmaceuticals (FPHAX)
Health Care,   Quote: 19.33 -0.12 (-0.62%)
  Bullish
Bottom 5 Underperformers
Rank 3 mo. Fund name, Industry and Quote Trend
39.
   
-0.04% Fidelity Select Medical Equipment (FSMEX)
Health Care,   Quote: 46.57 0.3 (0.64%)
  Bearish
Alert: trend can change
40.
   
-1.2% Fidelity Select Communications Equipment (FSDCX)
Technology,   Quote: 34.58 0.02 (0.06%)
  Bullish
41.
    +2
-2.75% Fidelity Select Medical Delivery (FSHCX)
Health Care,   Quote: 90.52 0.6 (0.66%)
  Bearish
42.
    -1
-2.92% Fidelity Select Multimedia (FBMPX)
Consumer Cyclical,   Quote: 79.87 -0.22 (-0.28%)
  Bullish
Alert: trend can change
43.
    -1
-4.11% Fidelity Select Consumer Staples (FDFAX)
Consumer Staples,   Quote: 96.12 -0.09 (-0.09%)
  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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© 2017 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.