From the desk of Willie Delwiche.
Key Takeaway: Broad market strength gets front page treatment. German Bund yields pointing the way higher for US Treasury yields. Economic activity is booming, holding true to the post-recession historical pattern.
The Energy sector’s pullback from its March peak has finally caught up to it in our relative strength rankings. Even though Energy remains the top-performing sector in 2021, it plummeted from third to ninth in this week’s rankings. If it is unable to get back in gear in short order, it’s time in the leadership group could come to a swift conclusion. While Energy fell in the rankings, Materials and Real Estate both climbed higher. Industrials and Financials have been laggards of late, but remain in a leadership position overall. Our industry group heat map shows mid-caps leading, with large-caps improving and small-caps deteriorating.