📈Is It Time for a Pivot?

Is it time for a pivot in the stock market? Since the beginning of 2023 we have had a solid playbook. The Nasdaq has led. Growth has outperformed value. Retail stocks have outperformed consumer staples. Lately we are seeing signs of leadership changing. Here are 5 charts to consider.

QQQ/SPY In a bull market environment the NASDAQ always leads the SP500. This is clear from 2020 till November 2021. From Jan 2023 the Nasdaq has had the single greatest period of outperformance in 18 months. We are currently sitting on the neckline. It’s worth keeping an eye on.

XLY/XLP - Consumer Discretionary (retail) compared to staples. Since January retail names such as AMZN have outperformed staples such as PG. Since mid February we are seeing that outperformance wane.

VUG/VTV -Growth has been outperforming value names but currently we are at a multi year resistance.

Gold/TLT - Gold compared to 20 year Treasury bonds is making 10 year highs. Gold currently so much more demand than treasury bonds usually happened during times of crisis and/or much lower yields.

Commodity Index - Commodity prices were flat since the beginning of the year and for the past four weeks have been in free fall. This usually happens during periods of slower growth and uncertainty.

For a more in depth look into the current trends , how they are changing and what stocks look to have the most potential watch the video below. Play close attention to the bond and stock market mixed signals.

Wishing Everyone Massive Success in 2023 🍾