More Sector Rotations

MarketSurge powers the charts in this video.

Bull markets correct through sector rotations. This is exactly what we saw last week. While the semiconductor leaders pulled back to consolidate recent gains, other sectors bounced. 

It has become typical for financials to rally ahead of earnings and then sell off after the reports. Can we see a repeat?

Software and Internet stocks had a big week led by Google, Amazon, Meta, and Datadog.

The PCE inflation came within estimates last Friday – 2.6% year over year. Small caps gapped up on the news but then tapered. They continue to underperform significantly. Unless interest rates really crash, this is not likely to change.

There are many eyes on biotech. If XBI manages to go above 95, we might see another rotation. 

Overall, it has been a choppy tape to trade lately. Many of the breakouts would last one, maybe two days, and then they would fizzle and reverse. There have been great opportunities but you had to be fast to take advantage of them because they didn’t last long. 

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