Sector Rotation into Defensives

When things are good, you want to see financials, tech, and consumer discretionaries leading on a relative basis. When times are bad, you’d expect to see the defensive areas like staples, healthcare, and utilities outperforming.

Well, Technology peaked on a relative basis back in the summer before $AAPL crashed. Discretionaries peaked in January. And Financials were the last ones standing, but had an unfortunate false breakout in relative strength a couple of weeks ago.

Meanwhile, Healthcare is hitting 3-year highs relative to S&Ps, and Staples and Utilities look constructive on a relative basis. I dropped by the Nasdaq this morning to talk Sector Rotation with my friends at BNN. Click the video to check it out:

2-26-13 BNN



Technical Tuesday: A Take on the Trade (BNN)