Rotation to Financials, Retail May Have Begun

The market's been oscillating around unchanged all day, but something far more interesting is going on. A quick scan of today's winners and losers in the S&P 500 shows something I haven't seen in a LONG time. Retailers and financials are up, energy, materials, some industrials and even utilities are down.

In my opinion, we need to see some of these hot sectors deflate before this market finds a a bottom. Tech has already deflated, while utilities remain the best performing sector of the market - until today maybe.

Buckle up, it could get very interesting...

Comments

[BespokeNonSense]

So it took a whole day of financial going up to come to this conclusion? How about waiting at least a second day? Just a thought though.

[NARSpin]

Lousy call. You are aware that the monoline insurers ambac and MBIA are about ready to go bankrupt. We're still eating the appetizer (subprime) and the chef wants to bring out the entree (monoliners), yet you want to get up and leave! Patience grasshopper.

[Kunst]

It's time to start thinking about the winners in the next up cycle. Financials definitely fit the bill. Not quite yet, but sooner than most any other sector.

You make money by investing before the obvious.