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.

Fri, Oct 11 2019, 21:11 EDT.



Outperformers

Rank* 3 mo. gain Fund name, industry and quote Long-term trend
1.
   
7.32% Fidelity Select Construction & Housing (FSHOX)
Real Estate,   Quote: 63.33 0.52 (0.83%)
Bullish
2.
   
7.09% Fidelity Select Wireless (FWRLX)
Telecom,   Quote: 10.57 0.15 (1.44%)
Bullish
3.
    +2
5.04% Fidelity Select Telecom & Utils (FIUIX)
Utilities,   Quote: 28.95 0.06 (0.21%)
Bullish
4.
   
4.7% Fidelity Real Estate Investment (FRESX)
Real Estate,   Quote: 46.74 -0.08 (-0.1709%)
Bullish
5.
    -2
4.51% Fidelity Select Utilities (FSUTX)
Utilities,   Quote: 96.43 -0.13 (-0.1346%)
Bullish
6.
    +2
4.17% Fidelity Select Computers (FDCPX)
Technology,   Quote: 76.51 1.40 (1.86%)
Bullish
7.
   
3.83% Fidelity Select Semiconductors (FSELX)
Technology,   Quote: 10.84 0.25 (2.36%)
Bullish
8.
    +1
3.02% Fidelity Select Defense and Aerospace (FSDAX)
Industrials,   Quote: 18.40 0.09 (0.49%)
  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
9.
   +2
1.05% Fidelity Select Banking (FSRBX)
Financials;   Quote: 25.98 0.45 (1.76%)
Bullish
10.
   +2
0.96% Fidelity Select Technology (FSPTX)
Technology;   Quote: 17.91 0.26 (1.47%)
Bullish
11.
   +4
0.69% Fidelity Select Telecommunications (FSTCX)
Telecom;   Quote: 59.97 0.57 (0.96%)
Bullish
12.
   -2
0.62% Fidelity Select Pharmaceuticals (FPHAX)
Health Care;   Quote: 20.96 0.21 (1.01%)
Bullish
13.
   +1
0.1% Fidelity Select Financial Services (FIDSX)
Financials;   Quote: 10.31 0.14 (1.38%)
Bullish
14.
   +3
0% Fidelity Select Retailing (FSRPX)
Consumer Cyclical;   Quote: 16.37 0.24 (1.49%)
Bullish
15.
   +5
-0.06% Fidelity Select Automotive (FSAVX)
Consumer Cyclical;   Quote: 33.85 0.70 (2.11%)
Bullish
16.
   
-0.35% Fidelity 500 Index (FXAIX)
Benchmark;   Quote: 103.27 1.13 (1.11%)
  Bullish
17.
   +2
-0.41% Fidelity Select Multimedia (FBMPX)
Consumer Cyclical;   Quote: 63.09 0.76 (1.22%)
Bullish
18.
   -5
-0.46% Fidelity Select Consumer Staples (FDFAX)
Consumer Staples;   Quote: 84.75 0.40 (0.47%)
Bullish
19.
   -1
-1.45% Fidelity Select Insurance (FSPCX)
Financials;   Quote: 63.40 0.56 (0.89%)
  Bullish
20.
   +1
-1.63% Fidelity Select Software & Computer Svcs (FSCSX)
Technology;   Quote: 18.75 0.23 (1.24%)
  Bearish
21.
   +3
-1.79%New Market Performer  
Fidelity Select Consumer Discretionary (FSCPX)
Consumer Cyclical;   Quote: 47.22 0.60 (1.29%)
  Bearish
Alert: trend can change
22.
   
-1.87% Fidelity Select Air Transportation (FSAIX)
Industrials;   Quote: 75.60 0.80 (1.07%)
  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
23.
   
-2.93% Fidelity Select Consumer Finance (FSVLX)
Financials,   Quote: 16.89 0.22 (1.32%)
  Bearish
24.
    +3
-3.08% Fidelity Select Industrials (FCYIX)
Industrials,   Quote: 34.31 0.52 (1.54%)
  Bearish
25.
   
-3.21% Fidelity Select Transportation (FSRFX)
Industrials,   Quote: 90.16 1.80 (2.04%)
  Bearish
26.
    +4
-3.59% Fidelity Select Materials (FSDPX)
Materials,   Quote: 65.73 1.22 (1.89%)
  Bearish
27.
    +5
-3.8% Fidelity Select Environment & Alt Energy (FSLEX)
Industrials,   Quote: 24.28 0.54 (2.27%)
  Bearish
28.
    -22
-3.91% Fidelity Select Gold (FSAGX)
Precious Metals,   Quote: 22.39 -0.87 (-3.7403%)
  Bearish
29.
    -3
-3.92% Fidelity Select IT Services (FBSOX)
Technology,   Quote: 71.81 0.79 (1.11%)
  Bearish
30.
    -2
-3.94% Fidelity Select Leisure (FDLSX)
Consumer Cyclical,   Quote: 15.86 0.14 (0.89%)
  Bearish
31.
    -2
-3.96% Fidelity Select Brokerage and Inv Mgmt (FSLBX)
Financials,   Quote: 72.68 1.01 (1.41%)
  Bearish
32.
    +1
-5.3% Fidelity Select Natural Resources (FNARX)
Energy,   Quote: 24.30 0.26 (1.08%)
  Bearish
33.
    -2
-5.59% Fidelity Select Medical Equipment (FSMEX)
Health Care,   Quote: 54.00 0.53 (0.99%)
  Bearish
34.
    +1
-5.69% Fidelity Select Chemicals (FSCHX)
Materials,   Quote: 11.94 0.30 (2.58%)
  Bearish
35.
    +1
-6.81% Fidelity Select Energy (FSENX)
Energy,   Quote: 33.39 0.51 (1.55%)
  Bearish
36.
    -2
-6.99% Fidelity Select Health Care (FSPHX)
Health Care,   Quote: 23.56 0.23 (0.99%)
  Bearish
Bottom 5 Underperformers
Rank 3 mo. Fund name, Industry and Quote Trend
37.
   
-8.94% Fidelity Select Biotechnology (FBIOX)
Health Care,   Quote: 18.43 0.22 (1.21%)
  Bearish
38.
   
-9.72% Fidelity Select Communications Equipment (FSDCX)
Technology,   Quote: 35.65 0.45 (1.28%)
  Bearish
39.
   
-9.83% Fidelity Select Medical Delivery (FSHCX)
Health Care,   Quote: 83.95 0.58 (0.70%)
  Bearish
40.
   
-11.63% Fidelity Select Natural Gas (FSNGX)
Energy,   Quote: 16.56 0.25 (1.53%)
  Bearish
41.
   
-14.77% Fidelity Select Energy Service (FSESX)
Energy,   Quote: 21.24 0.60 (2.91%)
  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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© 2019 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.