Just look at the new market leaders this quarter:
QTD sector winners
Tech: up 10 percent
Materials: up 5.5 percent
Industrials: up 4.7 percent
Banks, which started strong, have also started moving higher after a period of consolidation.
The losers are all the low-volatility sectors that had been popular in the earlier part of the year:
QTD sector losers
Telecom: down 5.4 percent
Utilities: down 4.7 percent
Consumer staples: down 0.6 percent
That low-volatility play has been a popular game for over a year, but it has not worked at all this quarter:
High Beta v. Low Volatility
High beta (SPHB): up 10.3 percent
Low Volatility (SPLV): down 1.2 percent
High-beta are small- and mid-cap oil names, some banks (usually regional), some tech. Low-volatility are mostly consumer names.
Another sign of market health is that the average stock is doing better than the market-cap weighted indices. The S&P 500, which is weighted by market capitalization (the biggest stocks like Apple, Amazon and ExxonMobil have a much greater weighting than smaller stocks) is up 0.4 percent this month, but the equal-weighted S&P 500 (RSP) is up more than twice that — up 0.9 percent.
This is true across many sectors: In Energy, in Technology, in Consumer Discretionary, and in Health Care, the average stock is outperforming the indices this month:
Equal-weight: up 6.2 percent
S&P Energy: up 4.5 percent
Equal-weight: up 1.9 percent
S&P Tech: up 1.2 percent
Equal-weight: up 0.8 percent
S&P Cons.Disc.: down 0.2 percent
S&P Health Care: down 1.1 percent
What's it all mean? It's just another way of showing that the rally has been broad-based.
Bottom line? Boring does not mean insignificant.