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)
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)
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)
Tech issues: Seasonally slow period kicks in for tech, not to mention poor business capex.
Retail: rolling over?
(this week)
Retail issues: cost cutting, inventory control have been good, but top line growth is still nonexistant.
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