Hello TheoTrader,
A bit of chaos crept into the tape last week.
The Dow Jones Industrial Average soared to a new all-time high. Yet, technology, which drove most of the rally, lagged behind.
So, is this the start of another round of market turbulence, or just a healthy bull market rotation?
The new sectors on the Bullseye Leaderboard will definitely make you think.
The Real Economy Reawakens?
While tech struggled last week, basic materials built a new bullish case. It was the top performer last week. Financials also made a strong showing.
But step back and we see tech is still the top-performer for 2026 as we close out the year.
If you didn’t own tech in 2025, you got left behind…but will that be the trade of 2026?
Look, this rally is mature now. But that doesn’t mean we can’t keep making new all-time highs. If that’s true, you definitely don’t want to sell all your tech.
In fact, a handful of tech names in the Trinity portfolio kept making new highs.
But is it time to look elsewhere for outperformance?
It’s normal and healthy for new sectors to assume leadership, especially once you leave the “early” stages of a bull market.
I don’t tend to get too excited about new sectors claiming the one-week leadership position.
However, financials popping into the 30-day spot has my attention, especially with the yield curve steepening as it is…
We’ll know more in the coming weeks. But, I like what I see.
Keep you posted,
Gianni Di Poce