Japanese Stocks Correct

Fidelity Japan Smaller Companies Fund (FJSCX, last change: 0.90%)

In our April 17 blog we warned that a correction is likely for the overbought Japanese stock market. As the chart of the Fidelity Japan Smaller Companies Fund (FJSCX, last change: 0.90%) shows, the correction did take place with a sudden spike of volatility. FJSCX remains the best performing Fidelity mutual fund of 2013 with 36.27% year-to-date return.

 

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

Market Sells Off on News of the Cyprus Deposit Tax; China Fund Enters Bearish Trend

Fidelity Spartan 500 Index Fund (FUSEX, last change: -0.54%)

As we pointed out in previous blogs, the stock market became overbought in recent weeks and was ripe for a pull back. Equities did sell off today due to worries about the impact of the Cyprus Deposit Tax on other Eurozone countries. The selling was broad based with 88% of Fidelity’s Select sector funds closing lower.  The Fidelity Spartan 500 Index Fund (FUSEX, last change: -0.54%) was also down slightly, but the chart pattern continues to look bullish.

Fidelity China Region Fund (FHKCX, last change: -2.18%)

The rotation in international markets continues. Today the Fidelity China Region Fund (FHKCX, last change: -2.18%) was the weakest performer. FHKCX dropped below its 100 day moving average indicating the beginning of a bearish downtrend.

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

Gold Mining Stocks Correct

FSAGX

We have covered the bullish breakout of gold stocks since early September. The chart of the Fidelity Select Gold Fund (FSAGX, last change: -0.70%) shows that the bullish rally has stalled and a correction is taking place now. Gold needs to find a new support level in the coming sessions for the bull move to continue.

Technical analysis screens are provided by FidelitySignal.com

Medical Equipment Stocks Are Hit the Hardest as the Broad Market Corrects

FSMEX

A sharp sell-off brought down medical equipment stocks today. As the consequence, the Fidelity Select Medical Equipment and Systems Fund (FSMEX, last change: -2.93%) was the weakest performing Fidelity mutual fund in today’s session. We’ll be watching for further signs of a potential trend reversal.

Technical analysis screens are provided by FidelitySignal.com