Leading Sectors
As we exit February and move into March, it is a good time to review the major stock market sectors and see where money is flowing.
This gives us hints as to where institutions are putting their money, and thus where we should be focusing.
Let’s look on a few timeframes.
Sector Leaders: February
Through the entire month of February, below are the leading sectors:
You can see that semiconductors and biotech stocks are leading by a wide margin (almost 10%).
This isn’t shocking by any means but is a good reminder that this is where money is flowing and we closed near the highs so it doesn’t seem like this trend is reversing just yet.
Sector Leaders: Last Week
Now let’s zoom in and look specifically at the past week:
What you want to be looking out for here is divergences. Yes we are still seeing the SOXX and XBI lead, but there are a few new trends emerging.
Biotech is starting to be sold off and the XLRE and CLOU are showing strength.
Therefore these are the sectors that you should be focusing on.
I walk through additional timeframes in the clip here: