Another week is upon us, so it’s time to take the measure of the markets’ behavior we might expect over the next sessions, based on recent sector performance rankings. I have a really cool “risk-on/risk-off” indicator that I’m looking forward to sharing with you shortly, but for now, I’m going to keep it simple and share how we continue to see the right sectors lead at the right time.
After all, sector rotation is the lifeblood of bull markets, and there have been some positive developments in the performance rankings just in the last week. Check it out…
Stocks Look Bullish for Now
To anyone that’s been paying attention, seeing technology as the leader across the board here is not surprising at all. Whether it’s a stock like Nvidia, Apple, Microsoft, or Alphabet - it’s tech’s market, and we’re all just trading in it. But the good news is technology has displayed a historical tendency to lead. On its own, this sector performance ranking portends positive omens for stock prices in the coming weeks in months.
If we were to start seeing sectors like utilities or consumer staples claim spots in this sector performance ranking, I’d be singing a much different tune. Does this make me a contrarian right now? It’s hard to say. It seems both the bulls and bears are loud right now.
Don’t be surprised if the market rally pauses here, and the bears start to get cocky. Remember, when bears unwind their positions, it provides fodder for moves higher in markets. In the meantime, I’ll keep you posted on any major developments on the sector front.
Wishing you a prosperous trading week ahead...