Monday, December 8, 2008

Positive Territory; Education Stocks Pass A Milestone Today

Since this economic turmoil in the market began a few months ago, every sector has been in negative sigma territory.  Today, for the first time in more than two months, one sector crossed above zero; education stocks.  These are the stocks that have been leading the way for the past month as jobless rates increase and people are looking to sharpen the saw in the classroom.

Apollo Group is leading the sector and has been on a relative tear approaching a new 52 week high.  Capella is up more than 50% from its lows in October.  Universal Technical Institute is a close third in its sigma performance teaching automotive, diesel, collision repair, motorcycle and marine technicians.  It's no doubt these skills will be great to have as people are putting off the purchase of new vehicles and maintaining their old ones.

It's exciting to see the sector turn into positive territory although the market in general is still seeing a sigma value below 2.5.  Another bright sign is the sigma value of the VIX has been dropping and is now at -1.23.  This is an indicator that the volatility is calming down and getting back to normal.

Find all of the sector sigmas at http://foursigmatrading.com/industrygroups.php.  

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