Aside from the truly defensive sectors (i.e. utilities) this 2-month rally has seen a rotation into almost every "growthy" subsector, except for 3 that I can think of: solar, dry bulk shippers and oil services. The latter group is still struggling, but the former two have seen the rotation finally come to their doorsteps, Which is sensible since we've time warped back to 2007 and dry bulk shippers and solar stocks were all the rage back then. (Click to enlarge)
Now the question to be asked is... after every "growthy" sector has had its turn in the sun (pun intended) what's next? In the old days, when the last vestiges and / or the most speculative of stocks and sectors start running (both happening of late), one would want to get very cautious and begin planning for a selloff. But that was the old market when the index could fall more than 0.3%; I don't know the rules in this market.
With the "no one loses" American economy and stock market, I guess we have to wait for the rotation to return to the first sectors that led us up and start a new leg of rallying... and from there we keep rinsing, washing, repeating until S&P 2500?*
*I'm joking... right?
Poor TZA, your 50% loss in 2 months saddens me... one day we will be reunited.
Disclosure: No positions but longing for the days of TZA, aka short TNA