We are about 75% through Q1, and how you have positioned with respect to sectors is likely having a dramatic impact on your equity performance. It's been a great quarter so far, with the S&P 500 (SPY) up in price by almost 9%. While I remain bullish for the intermediate-term, I feel like we could be facing an interim top within the next few weeks. There are several technical indicators I am watching, and I have some fundamental concerns too. On the latter, I am concerned about the big positive dynamic this year of Yen weakening potentially halting or risking the wrath of Europe. Also, all those capital gains taken in front of year-end are likely to lead to some cash-raising in front of April 15th. Finally, we might see some nervousness as we begin to start earnings season in a few weeks.
If the market reverses, I suspect it will be a profit-taking type of scenario rather than the start of something more alarming. In this case, what has gone up the most is likely to be at risk of correcting the most. With this in mind, I wanted to see how the different sectors have been performing so far in 2013:
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