Top 10 Fidelity Mutual Funds

The salient feature of the bullish uptrend of the U.S. equity market this summer is low volatility. Most sectors are up since the last correction in February. The benchmark Fidelity Spartan 500 Index Fund (FUSEX) has returned 6.56% in the last three months.

As energy prices have slowly increased since January, it is not surprising to see Fidelity funds investing in the natural resources sector dominating the list of the top 10 Fidelity funds (ranking is provided by FidelitySignal):

One of our favorite investments in this sector is the Fidelity Natural Resources Fund (FNARX). FNARX has provided an excellent 35.48% gain since the buy signal was issued on April 22, 2013. The top panel of the chart below shows that the relative strength of FNARX compared to the S&P 500 index has been increasing, which continues to make this mutual fund an attractive investment:

 

 

Buy and sell signals for Fidelity funds are available at 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):

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).

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 o
n 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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Stocks close higher following an impressive late afternoon surge of buying

The Fidelity Spartan 500 Index fund (FUSEX) closed up 2.28%. The Automotive sector was the top performer today. In spite of the impressive gain, we warn investors that the U.S. stock market is still in a downtrend.

The top gainer of the day was the Fidelity Select Automotive fund (FSAVX, change: 5.23%), but the trend is still down.

Mutual fund screens are provided by FidelitySignal.com  

Panic selling of 2011 continues: U.S. stocks break down

We have warned about the risk of U.S. stocks moving lower in the fall season following the panic selling in early August. Unfortunately, our benchmark S&P 500 index fund moved below its support level today, breaking its support level.

Fidelity Spartan 500 Index fund (FUSEX, change: -2.86%)

http://fidelitysignal.com/aug_2011

Panic selling continues

The stock market has dropped in panic selling in the last two days and is approaching the support level (see FUSEX chart below). Our best hope is that short sellers will cover their positions ahead of the weekend, which will lead the market higher while reinforcing the support level.

Fidelity Spartan 500 Index fund (FUSEX, change: -3.18%)

The selling of equities today was ferocious, reminiscent of the worst days of 2008.  Energy services stocks got hit especially hard (see FSESX below). This was part of the global sell-off of commodity-related investments (see FFGCX below).

Fidelity Select Energy Services fund (FSESX, change: -6.92%)

Fidelity Global Commodity Stock fund (FFGCX, change: -6.46%)

Mutual fund screens are provided by FidelitySignal.com

Money flow: Where is the bull market now?

While the stock market selling continues, the bull market in treasury bonds accelerates.

The Fidelity Spartan Long-term Treasury Bond Index fund (FLBAX) closed up 2.67%

The market is at the cross-roads

The U.S. stock market indeces bounced back from their support level in the last few trading sessions, however the momentum is not very strong and the volume is light. The overall trend continues to be bearish until FUSEX moves above the trendline.

The Fidelity Spartan 500 Index fund (FUSEX).

As gold moving higher again reversing its recent pullback, gold stocks moved up to their resistance level. A breakout on high volume from this level would be considered very bullish.

The Fidelity Select Gold fund (FSAGX) has approached the top of its trading range.

The panic of 2011

In our blog post three days ago we said that we wouldn’t be surprised to see the selling continued. On Thursday and Friday the stock market sold off on higher than average volume. Unfortunately, the stock market is increasingly in a panic mode with brokers reporting a spike in trading volume, as individual investors sell their stocks.

The good news is that the Fidelity Spartan 500 Index fund (FUSEX) is near its support level. If the support holds, the market can bounce back from here next week. If the support doesn’t hold, renewed selling can ensue and the panic can accelerate.

The Fidelity Spartan 500 Index fund (FUSEX) is near the support level.

Stocks drop again, but there is a silver lining

Three days ago we cautioned investors about the continued bearish outlook for the stock market. Today, negative economic reports and renewed worries about the European debt crisis triggered another sell-off globally. We wouldn’t be surprised to see the selling to continue.

The Fidelity Spartan 500 Index fund (FUSEX) dropped 4.44% today.

The silver lining is that the U.S. stock market has not yet broken below the recent lows, which can act as a support level. Furthermore, there are still a few areas where gains have been made. For example, investors continued to rotate into the safety of U.S. treasury bonds resulting in a 1.68% gain by the Fidelity Spartan Long-Term Treasury Bond Index fund (FLBAX).

The Fidelity Spartan Long-Term Treasury Bond Index fund (FLBAX) gained 1.68% as investors continue to rotate into the safety of U.S. treasury bonds.