📈 These Sectors are Leading

Institutions are focusing on these names.

Sector Review

It is always important for us to orient ourselves on which sectors are seeing the largest inflows.

Yesterday we established that the S&P 500 has been outperforming the Nasdaq, which tells us that Tech is NOT leader right now. Let’s take a look at where institutions put their money to work so we can identify where the leaders truly are.

These are the top performing sectors last week.

The pecking order on the right cuts off the leaders - but the top 5 are as follows: ITB BLOK PBW XLRE and XBI.

This tells you where institutions put money to work last week, and I would expect this to continue. If you look at these sectors, it is largely comprised of interest-rate sensitive sectors.

ITB is homebuilders. XLRE is real estate. XBI is biotech.

Each of these are sectors that I’ve been stating for months will benefit from rate cuts and that’s exactly what you’re seeing.

Note that Tech is nowhere to be found in the top 5. Not even semiconductors. This tells you that we are not currently in a tech-driven market.

My recommendation would be to go through these ETFs and identify the top holdings in each. From there you can look at charts and spot relative strength. This is a great way to put together a watchlist for stocks to buy.

I review the sectors in more detail and which stocks I am buying this week here: