The theory behind the Expectations Indicator is that it is easier to exceed low expectations than high ones. For more information on the Expectations Indicator click here.
| Expectations Indicator for Week of May 3rd, 2009 | ||
| Sector / Index | 5/3/2009 | 5/6/2009 |
| Energy | Low Expectations | Low Expectations |
| Materials | Low Expectations | Low Expectations |
| Utilities | Low Expectations | Low Expectations |
| Healthcare | High Expectations | Low Expectations |
| Industrial | Low Expectations | Neutral Expectations |
| Consumer Goods | High Expectations | Low Expectations |
| Technology | High Expectations | High Expectations |
| Financials | Low Expectations | High Expectations |
| Consumer Services | High Expectations | High Expectations |
| Telecommunications | High Expectations | High Expectations |
| Real Estate | High Expectations | Neutral Expectations |
| Average Total Market | Low Expectations | Neutral Expectations |
| S&P 500 | High Expectations | Low Expectations |
| Nasdaq 100 | High Expectations | High Expectations |
| Dow 30 Industrials | Low Expectations | Low Expectations |
| High Expectations | ||
| Low Expectations | ||
| Neutral Expectations | ||
In this mid week Expectations Indicator update there has been several changes in expectations. The largest move in expectations was in financials where they went from low to high, the real data actually showed an 80% change in expectations.
Healthcare had gone from high to low expectations, actually the real data really showed that the market overall raised its expectations and Healthcare stayed the same. Industrials went from high to neutral expectations showing that that this sector possibly has topped out. Consumer goods went from high to low expectations showing the market seems to be shifting to risk adverse staples. Real estate went from low to neutral expectations, again this was a case where the expectations for real estate stayed the same but the overall market expectations where raised.
The overall market expectations where raised from low to neutral expectations. The S&P 500 went from high to low expectations caused by the lowered expectations in consumer staples and energy which are currently heavily weighted in the index.
Since the Expectations Indicator concept is new, only time will prove this it useful or useless. This indicator will be released weekly until proven not useful. Going forward we will also be using popular Indexes to measure its success from the previous week. The indicator is for information purposes only and is not meant to constitute any type of financial advice. We also do not guarantee the accuracy of the above information and at any point may alter, change the process of producing it and or discontinue it.
Tags: Expectations Indicator
