📈 Institutions are Rotating Here

These sectors are seeing inflows.

Where are Institutions Placing Bets?

Yesterday we saw our first day of buying after three days of selling in the market.

After these big flushes, seeing which sectors are rising is important because it tells you where institutions are putting money to work.

Let’s take a look at sectors to see where we have relative strength.

Sector Analysis

After a lot of buying two days ago in oil/energy names (see charts below), we didn’t see the same push yesterday.

While the sectors were green, they didn’t quite make the moves that others did.

Instead, we saw XLC hit all-time highs (which is led by stocks such as NFLX GOOG and META).

We also saw XLK form a major reversal bar, closing at the high of the day. About half of XLK’s weighting is in MSFT and AAPL.

The point being, after sell-offs in the market, you should be running through the indexes to see where volume is coming in. Right now my focus is on XLC, XLK, and SOXX as those have seen the most buying.

I walk through another trick I use to spot relative strength in the video below: