Comparing Sectors
Doing daily comparisons of the major stock market sectors is crucial to understanding where investors are deploying capital.
This will tell you where money is flowing and hence where you should be focusing.
This is what today’s sector comparison looks like:
Regional Banks
KRE is the leading sector on the day. KRE is the Regional Banks ETF.
This sector saw significant action after rate cuts were announced, cooled for a bit, and is picking up steam again.
Top holdings of KRE include: ZION, CFG, RF, TFC, WAL.
Biotech
XBI is the next leading sector - the Biotech ETF.
We have already seen a lot of M&A activity in this space to start the year and expect to see more in the future which should lift the index.
Top holdings: CYTK, KRTX, ACAD, BHVN, FOLD.
Cloud Stocks
CLOU is the third leader - the Cloud Stocks ETF.
This sector has been on a tear since November and is continuing to see inflows. The index is close to making new all-time highs.
Top holdings: WIX, DOCN, TWLO, ZS, SHOP.
To learn more about what transpired yesterday, watch the video below: