Sector Rotation: Three Fidelity Technology Funds are Moving to the Top

The question about the tapering of the Fed’s QE3 program dominated the markets today. The S&P 500 index managed a modest gain of 0.63% and closed at 1786.54.

As the broad U.S. equity averages continue to stay in bullish territory, one of the most important changes in market dynamics is the re-emergence of technology, as one of the market leading sectors. Fidelity has several tech funds that can help investors to take advantage of this new trend. Here we highlight three of them:

The Fidelity Select Electronics Fund (FSELX) was the best-performing Fidelity mutual fund today (source: www.fidelitysignal.com/market_indicators). FSELX top holdings include large cap technology companies, such as Intel, Broadcom, Qualcomm and Micron. FSELX reached a new 52-week high today and we would not be surprised to see it become one of the top funds in the next market cycle.

fselx

The other two tech funds we’d like to highlight are the Fidelity Select Software and Computer Fund (FSCSX) and the Fidelity Select IT Services Portfolio Fund (FBSOX). Both funds continue to show an almost uninterrupted bullish trend since the April market correction.

fscsx

fbsox

Buy/sell signals for Fidelity funds are available at FidelitySignal.com 

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Markets Sell Off Due to the Federal Reserve Hinting at Slowing the QE3 program; Real Estate, Gold and Latin American Funds are Hit the Hardest

Fidelity Real Estate Investment Fund (FRESX, last change: -3.08%)

The Fidelity Real Estate Investment Fund (FRESX, last change: -3.08%) was down the most today out of all Fidelity mutual funds.

Buy/sell signals for Fidelity funds are available at FidelitySignal.com 

Stomach-churning market volatility continues today

The Federal Reserve announced “Operation Twist” today, a plan to lower interest rates by buying long-term treasury bonds. The stock market reacted to the news in the afternoon with across the board selling. The clear winner of the day was the Fidelity Spartan Long-Term Treasury Bond fund.

Fidelity Spartan Long-term Treasury Bond (FLBIX, change: 2.56%)

Fidelity Spartan Long-term Treasury Bond fund (FLBIX, change: 2.56%)

No stock market sector was immune to the news with several sectors loosing more than 5% in a single day! The funds with the largest losses were the energy services, the automotive and the real estate sectors funds. The market conditions continue to be extremely dangerous for equity investors.

Fidelity Select Energy Service (FSESX, change: -5.57%)

Fidelity Select Energy Services fund (FSESX, change: -5.57%)

Fidelity Select Automotive (FSAVX, change: -5.22%)

Fidelity Select Automotive fund (FSAVX, change: -5.22%)

Fidelity Real Estate Investment fund (FRESX, change: -5.17%)

Fidelity Real Estate Investment fund (FRESX, change: -5.17%)

Mutual fund screens are provided by FidelitySignal.com