Sector Rotation into Defensives
- Posted by JC Parets
- on February 26th, 2013
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:
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...
- Fox Business: Crude Oil and Japan
- Webinar Tuesday November 18th: Technical Analysis to Find Global Stock Market Trends
- Radio: Winning On Wall Street – Stocks & Bonds
- Why Economists Will Get Bonds Wrong Again
- Palladium Is Still The Best of the Metals
- Mean Reversion Coming In Energy Futures?
- A Breakdown of the US Dollar Index
- About That Bear Market In Russia
- Featured in November Issue of Traders’ Magazine
- Why Emerging Markets Are A Hot Mess
Archive by Year