It was a difficult week for investors, almost regardless of market sector. As we have observed in our last several updates, a general deterioration in market sectors helps the investor get a good feel for the overall market. Last week we wondered whether there was anyplace to “hide”. We noted that the inverse market sectors ETF’s were showing surprising strength.

Markets versus Sectors

Most ETF investors are interested in finding the best sectors. The advantage of considering market ETF’s and their inverses — SPY and SH, DIA and DOG, QQQQ and PSQ — is the ability to compare the overall market to individual sector performance.

Sector concentrations have a higher beta — more risk and more reward. It is unusual for a play on the overall market, long or short, to have more appeal than individual sectors.

Last week’s emergence of the ETF index shorts was quite …

Looking at market sectors is a great way to get overall perspective. When sector breadth shrinks, as it has over the last few weeks, it is a warning. Our weekly ETF update takes a time frame of about one month. We are especially interested in being on the right side of big moves. So should you!

Those with different time frames may reach wildly different conclusions. Those investing in bank stocks, for example, include both those who are looking a year ahead and those thinking one week ahead.

Successful investing means knowing your time frame and your mission.

Our rankings resemble the TV reality show, Survivor. The story is mostly about what is wrong. Secondarily one may ask, “Is there anything left to buy?”

This week’s featured sector reflects the circumstances.

The Featured Sector: Environmental Services

Market Vectors Environmental Services ETF (EVX) is a mostly about …