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) and is a member of the Market Technicians Association. More
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