US stock market rotating in overbought / oversold sectors...

 US stock market is caught in rotation on a daily basis.

TAPE is giving every indication that we are shifting from overbought sectors into deeply oversold sectors.

Smart money is also rotating out of overbought sectors for long term gains in oversold sectors.

There is tremendous money inflow in US equities based on yield factor alone.

Dividend stocks also getting attention.

Gold is nearing peak despite Warren Buffett half a billion purchase in GOLD. He may be calling a TOP. His performance lately has been sub par.

Oil stocks are deeply oversold

Airlines stocks are trashed

Cruise lines are being crushed.

Entire Oil & Gas complex are @ bargain.

Hotels are showing pulse

Restaurant showing sign that they are coming out of slump.

Casino stocks are showing life again, requires conviction & patience.

Technology will remain in focus as their earnings should improve with economic resurgence, it is all about PE, some sectors are sporting PE of dot com era of 1999....

My work is telling me that overweight in oversold sectors will give biggest bang for the buck, plus reduced weighting in Technology.

Markets keep changing every 6 months, be ready for upcoming change for next 6 months.

COVID-19 impact has been felt worldwide, most economies are adjusting to live with it.

Vaccine focus will shift into routine news, NOT a breaking news which has been overplayed.

US COVID-19 situation has tapered nicely, thus a sense of normalcy will return.

Schools are opening in September which is only 3 weeks away.

Stock market always looks ahead by minimum 6 months....

SO...readjust your investment thesis by shifting overweight into underweight and underweight into overweight.....

Good luck with your own thesis and comfort level.

BLOG does NOT give buy or sell.

Saleem

Posted in: Mixed