About That “Great” Sector Rotation
- Posted by JC Parets
- on November 7th, 2013
One of the common themes being used to justify this recent leg up in US Stock Market averages has been a “healthy” sector rotation. I’m not really sure where this comes from or who made that up. But it’s just not true. In fact, the math says that money has been flowing aggressively into Consumer Staples and out of the ever-so-important Financial sector.
This chart shows the relative performance of each of the S&P Sectors over the past month. Notice the financials all the way on the right and staples in the middle dominating the money flow.
Another one that stands out to me here is the relative weakness out of the Materials space. That’s another sector that’s been getting some positive attention. But not only have materials been relatively week over the past month, but continue to be in a multi-year downtrend relative to the S&P500.
So you tell me. Is this “healthy” sector rotation?
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...
- What I’m Waiting For To Buy Base Metals
- The Must Follow Podcast: JC Parets
- Long Crude Oil and Short Treasury Bonds?
- Fox Business: Time To Jump Into Russia?
- I Like Energy and Emerging Markets for Q2
- Audio: The Current Market Environment
- American Express Approaches Make or Break Point
- Benzinga Fintech Awards Gala April 8th
- BNN Appearance: Crude Oil, Transports & Google
- The Chart The Whole World Is Watching
Archive by Year