Are We Seeing Rotation or What?
- Posted by JC Parets
- on May 13th, 2013
This is a big topic of conversation these days. Everyone seems to be a rotationista. But we are indeed seeing it happen.
As was well documented, the defensive names had been leading this market throughout 2013. But look at what’s happened over the past month. During the most recent leg of this rally, the Utilities, Consumer Staples and Healthcare have all underperformed S&Ps. Meanwhile, it’s been Materials and Energy that have led the way. This is a chart showing the relative performance of each S&P sector going back to mid-April:
The Cyclicals have done their part all year and continue to do so. Cyclicals are now the 2nd best performing sector for the year, behind only Healthcare. I think this is a very good thing for markets. But outside of Cyclicals, let’s see if the continued rotation into these resource names keeps helping S&Ps grind higher.
Full Disclosure: Nothing on this site should ever be considered to be advice, research or an invitation to buy or sell any securities, please see my Terms & Conditions page for a full disclaimer.blog comments powered by Disqus
J.C. Parets is the Founder & President of Eagle Bay Capital, LLC. He is a 10-year veteran and Market Technician who actively manages money incorporating Technical Analysis and Behavioral Finance into his practice. JC’s work has been featured regularly on CNBC, Fox Business, Bloomberg, Business News Network, Wall Street Journal and Yahoo Finance among many other financial media outlets. More...
- BNN Appearance: Crude Oil, Transports & Google
- The Chart The Whole World Is Watching
- Crude Oil To $70 In the Second Quarter?
- Fox Business: Social Media Stocks Break Out
- CNN Money MarketMadness Stock Challenge
- Social Media Stocks Are On Fire
- About That Outperformance From The Dow Jones Transportation Average
- Some Thoughts On The US Dollar
- Small-Caps Could Be Emerging As New Leaders
- Taking The Time And Avoiding Shortcuts
Archive by Year