📈 Healthy Rotation

This is what we're seeing.

Rotation Signals Market Health

We’ve talked a lot in the past few weeks about the sectors that are poised to move as a result of the Trump administration changing policy.

However that does not mean that all of these sectors are going to move at the same time.

In fact, it is healthy for the market to rotate through sectors to sustain the move upwards on the indexes. You’re never going to see a sector go up everyday.

IGV Rotation

With that being said, we are seeing rotation right now.

Despite the fact that I believe that financials, capital markets, and industrials will continue to move higher in the long-term, we are seeing rotation away from these sectors for the time being.

Here is a look at the rotation of of Financials:

And here are Industrials:

To be clear, it’s important to note that this rotation has led to these sectors dropping by a point or two. It’s not massive selling.

We are seeing the rotation move into the IGV names:

We saw a bullish reversal in this sector yesterday, and more fuel was added to that fire when Salesforce ($CRM) came out with stellar earnings after hours.

Look for these names to continue today. I walk through names to watch here: