Rotation taking hold in US stock market.....

 It took a long time BUT rotation is evident to even the-most skeptics.

Here are RSI numbers :

XLE           46.32

GLD          48.11

DOW         53.83

Nasdaq     54.96

S&P 500  55.75

SOX         56.73

TAN         57.28

IWM        62.72  

JETS       64.66 

I am sure some of you are surprised that Airlines ( JETS ) is the strongest sector, this is not suppose to happen IF you ask any Technician / Fundamental analysts and are not positioned with any exposure, guess what can happen NOW.....

Small cap ( IWM ) is 2nd strongest group in entire market, again not suppose to happen ....

TAN ( Solar ) is the 3rd strongest group even after recent severe pullback.....

XLE & GLD are the dog of this market still....have a strong belief that more merger will take place that will boost XLE sector in short order.

IF this picture is not clear to anyone still, please pay attention to this RSI table...thou shall see the light..

Market exposure needs to reflect changing rotation.

YES technology and other favorite sectors should do well BUT not @ the pace as before, there is outflow from stay home to travel sector in a big way.

Market was bogged down by stimulus on  / off tussle....

Election and its theatrics are in final stretch, winners are easily predictable, the-big one should be a landslide.....silent majority have spoken in the polls......

SO...stay diversified with reverse weighting than before, thou should do well in $$$$ arena.

Good luck with your own thesis about COVID-19, vaccine, stimulus and election, but all that may getting in rear view mirror.

BLOG does NOT give buy or sell.

Saleem

Posted in: Mixed