📈 The Market is Rotating Here...
We are seeing rotation into these sectors.
Market Rotation
Market rotation is a very good thing. It means that while some sectors need to take a rest from making large moves, other sectors receive inflows to keep the market moving higher.
The goal is for rotation to continue and push the market higher over a long period of time. It is what we have seen thus far to start the year.
Where are we Rotating?
A couple things are glaring.
Some of the big tech names are NOT participating right now. Think AAPL and GOOG. They have been underperforming over the last few weeks despite the market moving higher.
We are seeing inflows into XLC, SOXX, and BTC names.
Right when it looked like the XLC was ready to roll over, we saw a strong day of buying.
Bitcoin names are continuing to find support for what looks like a grind higher. This is important as these names easily could have rolled over.
NVDA had a great day today and is grinding higher after hours after some semiconductor companies (AVGO MRVL) reported earnings.
Clearly institutions still want exposure to NVDA even at these levels.
I walk through my current thoughts on where to focus your efforts in the market in the clip below: