S&P up over 5 percent this week, you would think the entire market is rallying.
Think again. Lift the hood a little, and you will see big-time rotation going on.
The leaders: financial, commodities
The laggards: tech, retail
Banks: new leaders?
(this week)
- Fifth Third up 119%
- B of A up 63%
- Citi up 37%
- PNC up 40%
BANK STOCKS
Bank issues: the stress test alleviates fears on capital adequacy, but worries over credit defaults remain.
Commodities: the recovery/inflation play stays alive
(this week)
- Freeport-McMoran up 17%
- Peabody up 13%
- Anadarko up 14%
- Halliburton up 12%
- U.S. Steel up 10%
COMMODITIES
Commodity issues: it's all based on a China recovery/stimulus, which could falter. Most dismiss the reflation trade as way too early.
Techs: rolling over?
(this week)
- Dell down 9.2%
- Broadcom down 6.4%
- IBM down 3.3%
- Cisco down 4.5%
- Apple up 1.5%
Tech issues: Seasonally slow period kicks in for tech, not to mention poor business capex.
Retail: rolling over?
(this week)
- Black & Decker down 11.1%
- Lowe's down 5.1%
- Macy's down 5.0%
- Autozone down 3.2%
- Bed Bath & Beyond down 2.8%
RETAIL STOCKS
Retail issues: cost cutting, inventory control have been good, but top line growth is still nonexistant.
_____________________________
_____________________________
Questions? Comments? tradertalk@cnbc.com