Last week only 2 sectors of the 59 sectors we follow managed to outperform the S&P 500.

Like the index, down more than 2% for the holiday shortened week, all sectors delivered negative performance, including the two leaders.

It’s important to monitor industry performance to identify emerging trends. When the market does reverse course, and it will, investors get the biggest bang for their buck by allocating their dollars to the hottest stocks in the hottest sectors.