Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
While hard to jump immediately on the bandwagon with so many stocks suddenly overbought, the rotation similar to what was seen in January 2012 appears to be here. All the trades working the past few months are being sold off and money is flowing furiously into cyclical areas of the market. Some of the moves have been breathtaking – it is simply amazing how central bankers own the psychology of this market. Random example:
Here are the areas of strength the past 3 months as a whole
And here we have the same sectors over the past week – keep in mind this does not include today which is seeing a big ramp in financials, materials, and energy — so when this chart includes today’s closing price information the moves will be much more stark. Note the 180 degree change in consumer staples. health care, and utilities.
Disclosure Notice
Any securities mentioned on this page are not held by the author in his personal portfolio. Securities mentioned may or may not be held by the author in the mutual fund he manages, the Paladin Long Short Fund (PALFX). For a list of the aforementioned fund’s holdings at the end of the prior quarter, visit the Paladin Funds website at http://www.paladinfunds.com/holdings/blog
