Stock Market Indicies Per Sector

Stock Market Indices are mathematical constructs used to describe markets. Although some indices are weighted differently, majority are computed by measuring the weighted average of their set. Stock market indices can be used to describe a section of the market or encompass the whole. How you use them largely depends on your preference and goal. I prefer to use them as indicators to time my entries and exits enabling me to optimize my profits and losses.

One method I like to do is to segment the top earners of each sector and industry per month for the past trailing year. This method allows me to pick winning companies since I'm always investing into winning sectors and industries. The likelihood of me losing money is also greatly diminished whenever the company I select goes sour. The illustration below identifies the current leading sectors per month for the past trailing year.

Selecting Best Sector And Industry For The Past 15 years!

I have examined all sectors using the Dow Jones Sector indices. To gain a better understanding of how the Dow Jones Sectors indices are tallied click here.

In order for me to gain a broader understanding what direction the markets are headed I must first zoom out and look at its most macroscopic direction. I used the PerfChart feature on located on stockcharts.com to give me a percentage based gauge of all the indicies in the highest available timeframe which was 15 years with my level of subscription to the site.

Based on all the results I was provided. It was determined that the energy sector to be the most dominant sector amongst all Dow Jones sector indices in the past 15 years. The energy sector was the winner possessing the highest return at the end of its period.

Next the step was repeated for all industries containing inside the energy sector. Unfortunately I was only provided 406 days of raw data based on my subscription level. I concluded that the renewable industry was the most dominate industry possessing the highest companies that consist of solar energy!

Think about that! Solar is the way to go!