Top 10 Fidelity Mutual Funds

Equity markets showed signs of stability today after several days of selling that started on January 23. Hard-hit emerging market currencies rebounded. News about the improving economy and an earnings surprise by FaceBook set the tone for the positive market action.

The chart shows that the benchmark Fidelity Spartan U.S. Equity Index Fund (FUSEX) was able to hold its 100-day moving average, which has provided support for more than a year:

fusex

The table below shows the highest-ranked Fidelity mutual funds based on their three-month return. The U.S. stock market continues to lead in 2014, since no international fund made it to the top 10 list so far in 2014. The nine out of the ten highest-ranked funds represent subsectors of the health care and the technology industries:

FidelitySignal.com_Daily_Market_Research

Source: FidelitySignal.com

 

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Sector Rotation: Social Media ETF Outperforms Most Sector Investments

What are the best equity sectors to invest in, as the market reconfigures itself for the late December rally? We look for the answer using an unbiased ETF rotation screen (source: ETFnext.com):

ETFnext__Sector_Rotation

The screen shows that the Global X Social Media Index Fund (SOCL) ETF is newly rotated to the top 5 list, based on its increased price momentum. SOCL is an attractive investment, because it provides a diversified way to buy social media stocks. Top holdings include Facebook, Tencent, LinkedIn, SINA and Twitter (source: Morningstar).

socl

A closer look at the 1 year chart of SOCL shows that a strong uptrend started in July, but SOCL corrected in early November. The correction coincided with the highly publicized Twitter IPO on November 7. SOCL regained its positive trend in early December and now has one of the strongest price momentum compared to other sectors.

The chart also reveals the divergence between the volume and price trends, and that the recent advance is nearing an overhead resistance. Both the divergence and the proximity of the resistance level should caution investors about jumping in right now. On the other hand, a break out above the resistance on increased volume could make SOCL one of the most exciting investments of 2014.

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