It looks like we are watching the baton getting ready to be passed again. Early in the year it was handed from tech to energy and financial stocks. Now we are seeing those sectors start to ease up a little.
If we take a look at the hottest sectors for a 3 month period, we see a lot of oil performing well.
This heat map is from www.barchart.com.
Now if you look at the bottom of the list for the last 5 days, you will see a bunch of the same sectors underperforming.
This is a big heads up that we are seeing a rotation and we have to watch close for where that money will land.
As people become more comfortable in the re-opening environtment we are going to watch the retail sectors, restaurants, as well as travel and leisure. These have been laggers in the re-opening trend and have some room to run.
Take a look at how Wendy Kirkland has been able to leverage these kind of rotations in her free ebook. It is a great collection of strategies that can let you trade potential moves like this that are capable of busting out while still keeping a tight control on the risk.
Market Wealth Daily