The Global Equity Sell-off Resumes in February; Treasury Bonds Rise; Utilities are Holding in Bull Market

The stock market sold off today with an accelerated pace in part due to the weak PMI number from China. The benchmark Fidelity Spartan U.S. Equity Index Fund (FUSEX) crossed below its 100-day moving average, which is considered a bearish sign:

fusex

The weakest equity sector was the financials. The Fidelity Select Brokerage Fund (FSLBX) was down the most with a -3.52% loss for the day:

fslbx

The weakest Fidelity international equity fund was the Latin America Fund (FLATX) with a -3.42% loss. Equity markets in Latin America have experienced a tremendous bear market for more than a year now and are severely oversold. We expect a relief rally to happen in the near future.

flatx

Long-term yields continued to decline and investors bid up bonds in a flight to quality. As the result, the Fidelity Spartan Long-Term Treasury Bond Fund (FLBIX) gained 1.12% today:

flbix

One of the few sectors that still remain in a bull market is utility stocks, which are considered defensive investments. The Fidelity Select Utilities Fund (FSUTX) lost -1.27% today, but the chart shows that the bullish uptrend for FSUTX has not been interrupted yet:

fsutx

Source: FidelitySignal.com

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The Biotech Sector is Hit the Hardest in the Market Sell-Off

Fidelity Select Biotechnology Fund (FBIOX, last change: -5.07%)

The stock market sold-off sharply today due to fears about the impact of the government shutdown and the stall of the budget ceiling negotiations in Washington. High flying sectors, such as Biotechnology and Internet were hit the hardest in the sell-off. The Fidelity Select Biotechnology Fund (FBIOX, last change: -5.07%) was down the most out of all Fidelity mutual funds.

 

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

Best Fidelity Mutual Fund of 2013: Select Biotechnology Fund; Commodity Funds are also Gaining Momentum;

Fidelity Select Biotechnology Fund (FBIOX, last change: 2.05%)

The stock market rallied today in spite of the government shut down. The top Fidelity mutual fund, the Select Biotechnology Fund (FBIOX, last change: 2.05%) gained the most in today’s session. FBIOX has returned a stellar 62.86% so far in 2013 and shows no signs of slowing down. Also notable, that commodity-related mutual funds made it to the top 10 list today. These are the Fidelity Select Natural Gas (FSNGX) and the Fidelity Global Commodity Stock (FFGCX) funds.

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