TheoTrade's Tale of the Tape: How We’ll Make Money in the Next Six Months

It’s June 24. Can you believe it’s already the last week of the second quarter? The winds are blowing our way, too. Stocks are up nicely year-to-date, and we continue to see all the right things when it comes to sector leadership rankings.

I’m scouring the markets for a new potential theme going into the second half of 2024. I’m excited to tell you the sector on my radar has a high historical tendency to produce some big winners. In fact, this sector makes up part of one of the most important areas of the entire stock market. You don’t want to overlook this…

How We’ll Move from Strength to Strength

Before I share my favorite sector going into the back half of 2024, let’s review the updated sector performance rankings.

Last week, consumer discretionary (XLY) captured the one-week leadership position. Apparently, the market believes that we could be on the cusp of a consumer rebound - does this seem bearish to you? Me either. Remember consumption accounts for around 70% of the United States’ $27.3 trillion GDP.

Is the catalyst as simple as interest rates potentially coming down? It could well be. If you do the math, the “savings” on consumer debt is not that impressive, but that’s a discussion for another time. Now it’s time to share the sector I’m getting bulled up on: biotech.

It’s a peculiar sector because it falls under the broader umbrella of healthcare, which is the second-largest sector in the S&P 500. Basically, if technology takes a breather, I wouldn’t be surprised to see healthcare, or, specifically, biotech, take up the slack. I’ll be talking about biotech setups a lot in the coming months, as I think it has the potential to become home to some of the best risk-reward setups in this market.

Stay tuned...