Halloween sell-off spooks the equity markets

Most equity sectors sold off today after a strong October performance. The Fidelity Select Brokerage & Investment fund (FSLBX, change: -5.43%) was the weakest today of all the Fidelity Select funds, but still managed to hold above its trendline.

Most equity sectors sold off today after a strong October performance. The Fidelity Select Brokerage & Investment fund (FSLBX, change: -5.43%) was the weakest today of all the Fidelity Select funds, but still managed to hold above its trendline.

 

Mutual fund screens and buy/sell signals are provided by FidelitySignal.com     

Extraordinarily broad rally lifts financial funds today

All of the Fidelity Select sector funds closed higher today, which is indicative of how broad the stock market rally was. The Fidelity Select Financial Services fund (FIDSX) was one of the top gainers with an incredible 5.31% move. FIDSX is on the verge of breaking the recent seasonal downtrend. However, we caution investors that until FIDSX moves above its 100 day moving average, high volatility can continue.

Fidelity Select Financial Services fund (FIDSX, change: 5.31%)

Fidelity Select Financial Services fund (FIDSX, change: 5.31%)

Mutual fund screens are provided by FidelitySignal.com 

Financial services stocks are the top gainers today

The stock market rally continued after two days of gains. The Fidelity Select Financial Services fund (FIDSX, change: 4.02%) gained the most today. This sector has been one of the weakest so far this year. For the negative trend to reverse, we’d like to see FIDSX to move above both the red trendline and its 100 day moving average (gray line on the chart).

The Fidelity Select Financial Services fund (FIDSX, change: 4.02%) gained the most today.

The Fidelity Select Financial Services fund (FIDSX, change: 4.02%) gained the most today.

Mutual fund screens are provided by FidelitySignal.com