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"Mini" Sector Rotation From Big Tech, SPY Into Financials, Materials

Published 06/09/2017, 01:18 PM
Updated 07/09/2023, 06:31 AM
SPY
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TBT
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KRE
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XLF
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The ratio chart for the SPY vs. XLF has turned down after 3+ months of SPY outperforming XLF (the benchmark outperforming the Financials).

After Thursday's upside thrust in XLF, the Financial ETF appears to have started a new upleg in relation to the SPY, which means that money should begin to come out of the benchmark and enter XLF.

Notice the ratio has declined and violated its 3+ month up trendline, providing additional conviction that XLF (KRE and bond yields) have started a period of relative, if not absolute, strength.

Our Model Portfolio is long SPDR S&P Regional Banking (MX:KRE) ETF and ProShares UltraShort 20+ Year Treasury (NYSE:TBT).

SPDR S&P 500

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