Comments by Frank Gretz- Last Updated August 7, 2001

Group or sector analysis is extremely important to a successful investment strategy. Last year, for example, the Dow Jones Industrial Average fell 6% and the S&P 500 Index 10%. At the same time, however, the Philadelphia Utility Index (UTY) rose 44% and the Oil Service Index (OSX) rose 45%. Meanwhile, the Philadelphia Semiconductor Index (SOX) lost 18%. Stocks tend to move by group or sector. It's simply a lot easier to pick winning stocks in a strong group. 

SECTOR FOCUS -   Amex Biotech Index (BTK)
Technology stocks have been in the forefront of the market's attention recently, with last week's upgrade of the Semiconductors, this week's downgrade of the Semiconductors and Cisco's earnings due today. Another group worthy of attention, however, might be the Biotech stocks where many patterns have become increasingly vulnerable. Much like the overall market, the Amex Biotech Index (BTK) bottomed in late March and rallied impressively. The overall downtrend, however, appears to have resumed in mid-June and that would pretty much be confirmed by a break of support around the 500 level. While Amex Biotech Index (BTK) itself looks vulnerable another reason for concern is the near unanimous similarity of the patterns within the Index.  Click here to view the latest components of the BTK Index and a few representative stock charts.

The following are weekly bar charts with a 30-week weighted moving average and comments for some of the popular sector indices.  

Click on the index of your choice to see comment or just scroll down to see all. 

For a list of the stocks that comprise the listed indices go to Sector Views Components.

NYSE FINANCIAL INDEX:  

MORGAN STANLEY CYCLICAL INDEX:

PHILADELPHIA SEMICONDUCTOR INDEX:

AMEX BIOTECH INDEX:

AMEX PHARMACEUTICAL INDEX:

AMEX AIRLINE INDEX

AMEX OIL INDEX:

OIL SERVICE SECTOR INDEX: