Stock Market Today: Defensive Attitudes at All-Time Highs

October 20, 2021, 4:05 pm EDT

Defensive Attitudes at All-Time Highs

Both S&P 500 and Dow Jones index made a new all-time high again today. But the attitudes are rather low-profile or defensive. Looking at the featured sector bar chart we can see the leading sectors belong to defensive sectors: utilities, real estate, and healthcare. 

However, it is still worth mentioning some highlights in the healthcare sector or specifically healthcare insurance providers industry: ANTM +8%, CNC +5%, OSH, CI, HUM, MOH, UNH

The rally in the past three weeks does not have strong volume or offensive leaders so far. So, markets provide a conservative tone at this record high level. 

Therefore, traders and investors should adjust their strategies accordingly until bulls are out again on offensive mode. In our view, high inflation and coming rate hikes in November are more likely to pour cold waters on the overheated stock market. The stock markets have a hard time convincing market participants that easy money policies are sustainable.

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