Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
Today is an excellent example of why the senior indexes won’t quit even as a lot of stocks pullback and semi-correct. Monday we had utilites / dividend / safety stocks run. Tuesday it was “everything”, but led by financials post FOMC meeting and especially consumer related (housing, retail). The same two groups dominated Wednesday, but pro growth cyclical industrials kicked in. REITs were also hot in the first half of the week.
Meanwhile stocks in the coal and fertilizer sectors did little – but yesterday the former group ramped due to comments out of CSX (which also ramped the transportation sector) and today the ag stocks and oil services are kicking it – along with more coal. Meanwhile many of the groups that were ramping earlier in the week are correcting the past few sessions. Even Apple is taking a few day rest. (Financials have been non stop en fuego since the JPM comments and stress test).
So each day a few groups are taking the reins, and holding up the indexes even as other groups rest. Even on the days the a broad group of stocks is down, as shown by relative weakness in the Russell 2000, just enough new names/groups rotate into the ‘flavor of the day’ in the senior indexes to keep them flattish at worse. It is an impressive display.
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