📈 These Stocks are Outpacing Tech

This shift is crucial to understand.

RSP > SPY

We have seen a trend emerge over the past few weeks of tech underperforming relative to the rest of the stocks in the S&P 500.

That is exactly what we are seeing when we compare RSP to SPY.

RSP is the equal weight index of the S&P 500, meaning that it contains the exact same stocks as the S&P, but weights each of them equally. Conversely, SPY has unequal weights and strongly favors tech stocks.

Therefore, by looking at the difference in performance of RSP vs. SPY, we can see how tech is performing compared to the broader market.

You can see that our trend is holding intact, with RSP outpacing SPY pretty significantly.

This means that you should be making adjustments to your trading strategy if you typically only trade tech stocks.

You should either look at other sectors that are outperforming tech or size your positions in tech accordingly, knowing that it isn’t leading like it typically does in bull markets.

Keep in mind that this trend looks like it is only just beginning, with the RSP monthly just beginning to break out of a base.

I walk through what this means for the market and your trading strategy here: