The Market Rotates Away from Tech

Yesterday was an unusual day for the market. At noon, the S&P 500 was up about 0.5%. After that, the wheels fell off and the index closed down 1.7%.

What’s interesting is that once again, it was tech stocks that took the blame. The tech sector has lagged the S&P 500 seven times in the last eight days, and it’s doing so again today. Now it’s Amazon’s turn to bring down the indexes. (Technically, Amazon is classified as a consumer discretionary.)

This recent market action has been very good for our Buy List. Well, very good for the relative strength of our Buy List. By that I mean that we haven’t suffered nearly as much on down days.

Some of this is the unwinding of the FAANG Trade where a small group of very large stocks gobbled up most of the gains. Facebook, for example, has been creamed recently.

In the last seven weeks, the S&P 500 has lost -3.06% while the Buy List is down just -0.22%.

Posted by on March 28th, 2018 at 10:42 am


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