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:
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J.C. Parets is the Founder & President of Eagle Bay Capital, LLC. He earned the Chartered Market Technician designation (CMT) in 2008 and now actively manages money incorporating Technical Analysis and Behavioral Finance into his practice More
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