Stock Market Today: Sector Rotation

February 25, 2022, 11:40 am EST

Sector Rotation

It is very interesting to monitor sector rotation while bears are taking more control of the market. The timing makes sense to manifest the transition from offensive sectors to the core and defensive sectors as shown in the featured bar chart. 

Many people only focus on offensive names like TSLA, AAPL, AMZN, GOOGL, FB, NVDA, or ARKK. But, we may notice they are no longer the upside leaders. In fact, they become the leaders to the downside. Emerging leaders come from various sectors and industries where they offer opportunities for entry. If the trend keeps moving this way, this area may provide the highest profits. 

  • Consumer Staples: TAP, MO
  • Material: NUE, FCX, X, MOS
  • Healthcare: UHS, HSIC
  • Industrial: LMT
  • Automobile Retail: KAR, CVNA, CARG

Obviously, institutional investors took this rebound opportunity from the Russia-Ukraine event to adjust their portfolio composition in order to prepare for the coming months or years. Thus, this sector rotation process shows us what are the emerging leaders for the new market. 

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