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Sectors - What's Hot and What's Not? - Apr 29, 2015 | Market Measures
Tom Sosnoff and Tony Battista today talk about the best and the worst sector ETFs in the market right now.
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      Market Measures

      Sectors - What's Hot and What's Not?

      Apr 29, 2015

      Sector ETFS are index funds made up of industry specific stocks. Today, Tom Sosnoff and Tony Battista discuss how well these sectors have been doing based on market performance and explore different opportunities based on high implied volatility.

      While the health sector (XLV) is the best performing stock in terms of price movement, Utilities (XLU) presents opportunity as well since the implied volatility is high. The team then explores the relationship between the percentage of stocks within the sector with upcoming earnings and the level of implied volatility. For example, XLU has 57% of stocks within the index with earnings within 2 weeks, while XLV has only 38% of stocks with earnings. In theory we would expect a higher implied volatility with a higher percentage of stocks with upcoming earnings – this is not what we found in XLV. This presents us with an opportunity.

      The current slides view today including ETF rankings can be viewed by clicking the “Slides” button at the bottom of this video.

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