Sectors to Focus On
To kick off the week, itβs important to orient yourself on the trends we have been seeing recently in the market and where we should be focusing this week.
I have talked about this frequently, but it is critical for you to understand that the market shifted on July 11th.
This was when CPI released and gave us a negative reading - something that totally caught the market off guard.
From that point on, it was clear that rate cuts were guaranteed to come, so institutions shifted their money to sectors that benefit from declining interest rates.
You can see the leaders are KRE, ITB, XHB, and XBI - regional banks, home builders, and biotech.
Despite the volatility weβve seen in the market the past few weeks, these sectors have not budged.
The trading environment has been difficult, but if you keep your focus here, you should succeed.
Letβs have a great trading week!