About a month ago, I shared right here on this newsletter how a market rotation is underway…
With previous leading sectors slowly falling back…
And new sectors moving to the front.
Today, let’s see how that rotation has only continued to accelerate – and how we can take advantage of it.
Chart of the Day
This is XLV/XLK – the ratio of the S&P Healthcare sector ETF to the S&P Tech sector ETF.
As you can see, this ratio has been falling for months…
Meaning tech was severely outperforming healthcare.
But as of late September – right when I released that newsletter talking about the rotation – things started to flip.
For the past month or so, XLV/XLK ratio has been trending upward.
In short, healthcare has been quietly outperforming tech.
And it’s not the only one.
The Relative Rotation Graph below shows which sectors are improving (moving into the upper quadrants) and which are falling behind (moving into the lower quadrants).
You won’t read about it in the news (they’re too busy screaming about the AI bubble).
But this is how you know where the opportunities are.
I explain more below.
Insight of the Day
When markets are chopping sideways, it’s usually because some sectors are moving ahead while some are falling behind.
Currently, the major indexes are pretty much where they started at the beginning of the month – despite elevated volatility.
Put another way, they’ve been chopping sideways the whole month.
That is perfectly in line with the rotation happening beneath the surface.
As some sectors surge ahead while others fall behind…
Their opposite movements essentially cancel each other out – creating a sideways “go nowhere” market.
If you’re buying and holding the entire index, your returns are basically nil.
But if you focus your trades on the strongest stocks in the strongest sectors…
That’s how you could make serious returns even in a flat market.
That’s why later this morning at 11 a.m. Eastern…
I’m hosting a LIVE briefing explaining my top strategy for targeting these stocks.
I’ll show you how to drill down beneath the surface of the market to find them…
And how to filter them to look for the ones with the most explosive potential remaining (the key – looking for institutional “pressure points”).
The method I’ll be demonstrating has led us to recommend stocks that could have made our members over 500% within the past few months.
I’ll walk you through everything you need to know. It’s simpler than you might think.
So click here to guarantee your seat for my live briefing if you haven’t done so yet…
And I’ll see you in just a bit at 11 a.m. ET sharp.
Customer Story of the Day
“I am new at trading and have bought many programs. Ross' training is bar-none.
Ross is the first one I actually placed trades with.
I only do one contract at a time and I am up $500 my first week. My first trades were life changing to me!
Thank you! Ross and your Team…”
Ross Givens
Editor, Stock Surge Daily
